Tag: EMI

Home Loan is a Secured loan offered against the security of a
house/property which is funded by the bank, the property could be a
personal property or a commercial one. It is a loan taken by a borrower
from the bank issued against the property/security intended to be bought
on the part by the borrower giving the banker a conditional ownership
over the property i.e. if the borrower is failed to pay back the loan,
the banker can retrieve the lent money by selling the property. Home
loans are an attractive and popular means of buying a dream house for
most people. In India, the demand for home loans has increased manifold
in the last decade. Every day numerous people apply for home loans to
own a perfect abode for themselves. The fact that home loans come with
added advantages (like tax benefits) is the icing on the cake.

Interest rates on home loans for new consumers have come down by around
four per cent since September 2008 but consumers who had the misfortune
to take their loan before that have only seen their rates drop by
around 1.50 per cent to 2.25 per cent.

Home loan India can
primarily be classified into two categories on the basis of interest
rates i.e. fixed rate and floating rate of interest. There are very few
lenders in India who offer pure fixed rates where the rate of interest
remains constant for the entire tenure of the home loan, while most
lenders have a reset clause of 3-5 years. In floating home loan type,
the rate of interest on such loans is subject to change whenever there
are changes in the repo rates announced by RBI or any changes in base
rate of the bank. Borrower should opt for fixed interest rates only if
she/he is certain that the rate of interest is the lowest in the
interest cycle.

Home loans in India are provided by the lenders
up to maximum of 80% (90% for loan amount below Rs 20 lakhs) of the
agreement value of the house. In case of home loan for resale flats,
most lenders get the property valued independently and they will provide
the housing loan based on their value rather than the cost mentioned in
the purchase agreement. Frequently, the valuation as determined by the
banker’s valuer for the purpose of home loan is significantly lower than
the actual cost and hence the requirement of the borrowers for down
payment for the loan goes up. Also note that banks do not consider other
charges like Stamp Duty, Registration Charges, etc. while considering
the home loan amount eligibility.

Home loans are repaid through
monthly installments (EMI) spread over up to 20 years. Some of the banks
provide housing loans even for a tenure extending up to 25 – 30 years.
The maximum tenure of any loan and home loan specifically is also
restricted by the borrower’s age at the end of the tenure so as to
ensure that the loan gets fully paid by or before the retirement age.

Home loan eligibility depends up on various factors. A few of them are listed below –

House is the ultimate dream of every middle class family. Government
gave encouragement for house finance subsidiaries by offering number of
tax concessions to individuals. With the overall encouragement given to
this sector, a number of players entered in housing finance.

One
of the most important benefits of taking a home loan is the interest
rate that is allowed on the home loan. Fixed and variable interest rate
options are also available for home loans. If you can handle risks and
are willing to go the extra mile to benefit from any further fall in
interest rates, floating rate home loans will be best suited for you.

A loan against property (LAP) is exactly what the name implies — a
loan given or disbursed against the mortgage of property. The loan is
given as a certain percentage of the property’s market value, usually
around 40 per cent to 60 per cent.

Loan against property belongs to the secured loan category where the
borrower gives a guarantee by using his property as security.LAP is
pretty similar to personal loan; the only difference being you put a
property owned by you as collateral against the loan. This property
might be confiscated in case you default on the loan. As there is
collateral against the loan, banks feel more secure in lending and hence
the borrower gets some bargaining power as compared to personal loans
which is unsecured.

What purposes can I take a loan against property for?

Loan against Property can be taken for following purposes:

When to take a loan against property?

It’s easier to get a loan against property, then a host of other loans.
Also, Interest rates are far more attractive than other forms of loans,
like personal loans. Also, the property continues to be in the name of
the owner and the asset can be put to a more productive use.

Loans against property is yet to catch up in India, but it’s something that can certainly be considered.

This gives following advantages:

Important Features of LAP

Few features related to LAP which makes this option attractive:

Why you should opt for LAP?

There are three basic reasons which make this option worth consideration-

1. Lower Interest Rate

As it’s a secured loan; you get a bargain of 4 to 5% on the interest
Rate you pay as compared to personal loan. The Interest rate ranges from
11 to 14%. This lower interest rate gives a clear edge to it over
personal loan where you pay interest in the range of 16 to 20%.

2. Longer Tenure of Repayment

This feature further reduces your EMI burden as you can get LAP up to
10 to15 years. When your cash flow is not steady this feature makes the
option even more attractive.

3. Ideal Use of Property

In
case you own a property and not using it, LAP gives an opportunity of
optimum utilization. You do not lose the ownership and get Funds at
cheaper rates at your disposal.

A loan against property is one
of the best ways to raise money. The only disadvantage of such a loan is
that if the borrower is not able to pay the loan fully, the bank or the
financial institution can take possession of the mortgaged property.
Base your decision on your repaying capabilities.

Getting a car loan is an extremely easy process nowadays. There are plenty of banks and finance companies that are willing to give you a loan up to 2.5 to 4 times of your net annual income. There is no ceiling on the loan amount for new cars. So, here is how the step-by-step process for the car loans.

Step 1: Become eligible for the car loan.

To find the lowestcar loan interest rate, you need the dedicated research. With a few certain facts to keep in mind, there is a guarantee that your application for a car loan will be accepted in no time. To get loan ready, you need to meet the eligibility criteria of the most banks and finance companies.
The age of the borrower is between 21-65 years.
The borrower should have a job for at least 2 years. You should be able to hold a job atleast for a year with your current employer.
You should have a telephone, mobile or smart phone to be able to reach you.
You must earn minimum an income of Rs. 1, 80,000 P.A., which can include your and your co-applicants the income.
There are few banks that levy higher criteria for the car loan approval. You may need higher salary standards, better credit score, etc. But, if you apply with smart banking solutions like HDFC, above criteria can be sufficient.

Step 2: Gather down payment & finalize lender.

Since, car loan application and approval is easy, you need the down payment handy. So, how much down payment you need. It may seem that 15 to 20% is enough. But some organizations do offer loan for 100% of the amount too. So, look into that. It will help you finalize the lender.

Step3: Fine-tune the details.

The maximum repayment tenure is fixed to 7 years for the most banks. You will need to consider processing fee, service charges and taxes before you finalize the lender, EMI and tenure. Most lenders will have user friendly car loan EMI calculator on their websites. They are designed to help you compare the best interest rates, EMI, affordability of the car models you are considering and much more. Using a car loan EMI calculator, you can calculate the rate you can afford when you select the lender and EMI.

So make sure and do your homework on the various car loan interest rates using the car loan EMI calculator because it will help you select the most suitable one.

Getting a two wheeler loan today is perfectly easy. A two wheeler is the most comfortable mode of travelling if you want to reach a place quickly and beat the traffic. Not only is a two wheeler fuel-efficient, it also lets you avoid traffic congestions easily. Thus, a two wheeler helps make life easy and so does a two wheeler loan. Now, with the help of a two wheeler loan from the bank along with the help of a two wheeler loan EMI calculator, you can get your desired form of transportation.

The process for a two wheeler loan involves first deciding on whether you want to apply for a secured or an unsecured loan. With a secured loan, you will be required to give some collateral as security.This can be beneficial for both the lender and borrower as the former can give a modest loan for a decent interest rate. Some loan options also offer bonuses to serve as an incentive for consumers.

Getting a two wheeler loan also involves some paperwork as well. You will need to submit copies of your IT returns, income proof, a set of Know-Your-Customer (KYC) documents as well as a PDC and Security cheque. Other information like your residential address, phone number, vehicle model, loan amount required and the desired tenure which can go up to a maximum of two years needs to be submitted.
The interest rate of this loan, which will vary from bank to bank, can range from 13.5% to as high as 16.75% with special interest rates to women. It should be noted that many automotive companies have liaisons with major private and public banks, who in turn help give speedy two wheeler loans with a good interest rate. Most banks also give up to 95% of loan amount over ex-showroom prices of the vehicle.

This loan, though, must range between Rs.20, 000 to Rs.1, 50,000,with a tenure range of 1 to 3 years,dependent on certain terms and conditions that you must inquire about while applying for the same.It should be noted, though, that most private Banks offer two-wheeler loan at a relatively lesser interest rate ranging from 13-15%. Along with the loan, many banks provide special offers and benefits with easy repayment options over two-wheeler loan for their account holders.
With the help of a two wheeler loan EMI calculator, you can now also calculate the potential interest rate range that is suitable for you based on the loan amount that has been applied for. When you apply online, it is essential to also calculate the possible EMI range with the use of online two wheeler loan EMI calculators that are available on most of the lenders sites.