Loan Against Assets: benefits of Loan Against Property

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Showing posts with label benefits of Loan Against Property. Show all posts
Showing posts with label benefits of Loan Against Property. Show all posts

Friday, March 29, 2024

Save More Today Tax! Avail Top Benefits on Loan Against Property

11:14 AM 0


Owning property is a dream come true for many of us. However, it also comes with a lot of financial responsibilities. But did you know that owning property can also bring with it some great financial benefits? Yes, loan against property tax benefits can help reduce your tax liability and save you more money. Keep reading to find out how you can avail of these benefits and save more tax today.


What is a loan against property?


A loan against property is a type of loan where you pledge your property as collateral to avail of the loan. The value of your property is considered while sanctioning the loan amount. The loan amount can be used for personal or business purposes, as per your preference. The interest rate on a loan against property is generally lower than that on unsecured loans like personal loans or credit cards.


Mortgage loan tax benefits


When you avail of a loan on property, you are eligible for certain loan against property tax benefits under the Income Tax Act, 1961. Here are the top tax benefits that you can avail of:


1. Tax deduction on interest paid


If you have taken a loan against property for home renovation or for business purposes, you can claim a tax deduction on the interest paid on the loan. You can claim a deduction of up to Rs. 2 lakhs per annum under Section 24 of the Income Tax Act, 1961.


2. Tax deduction on principal repayment


The principal amount that you repay towards your loan against property is also eligible for tax deduction under Section 80C of the Income Tax Act, 1961. You can claim a deduction of up to Rs. 1.5 lakhs per annum on the principal amount of the loan. However, if you have availed of a loan against property for business purposes, you cannot claim a deduction on the principal repayment.


3. Tax benefits on rent received


If you have availed of a loan against property for purchasing a property that is let out on rent, you can claim a deduction on the interest paid on the loan. The entire interest paid on the loan is allowed as a deduction from the rental income received, under Section 24 of the Income Tax Act, 1961.


4. Tax benefits on prepayment of loan


If you choose to prepay your loan against property, you can claim a tax deduction on the prepayment charges under Section 24 of the Income Tax Act, 1961. This deduction can be claimed in the year in which the prepayment charges are paid.


How to avail of mortgage loan tax benefits?


To avail of loan against property tax benefits, you must ensure that you fulfill the following conditions:


1. Property ownership


You should own the property for which you are availing of the loan against property. If you have inherited the property, you should ensure that your name is updated in all the relevant documents.


2. Purpose of loan


You should ensure that the loan against property is taken for a valid purpose, such as for home renovation, business expansion, or purchasing another property.


3. Documentary evidence


You should maintain proper documentary evidence of the loan against property and the interest paid on it.


4. Repayment of loan


You should ensure that the loan against property is repaid on time, as per the terms and conditions of the loan agreement.


Read Also: Understand Mortgage Loan: How Can You Become Eligible for It


Conclusion


Loan against property tax benefits can help you save more money and reduce your tax liability. If you own a property and need funds for personal or business purposes, availing of a loan against property is a great option. The interest rates are lower than those on unsecured loans, and you can also avail of tax benefits on the interest paid and principal repayment. However, you must ensure that you fulfill all the conditions to avail of these benefits. So, go ahead and explore the loan against property option and save more tax today!
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Thursday, January 23, 2020

Why Should Freelancers Consider A Loan Against Property?

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Freelancers can avail several different types of credits to fund their necessities. Financial institutions offer both secured and unsecured credits according to one’s financial requirements.

If you require a substantial sum of money against a lower associated risk, you should opt for a loan against property to fund your freelance business. Unlike unsecured lines of credit, a LAP offers easy access to money even when you lack a fixed income.


How can Funding your New Business with a Loan Against Property be Beneficial?

Even though there are several types of advances available in the market, a mortgage loan is suitable when looking to start a new business. Here are a few advantages this credit provides under such a circumstance.
  • Substantial Loan Quantum
Loan against property is the credit a lender pays against your owned property. Therefore, the loan amount reflects a portion of the property’s price. When compared to business and personal loans available in the market, the property loan principal can be much greater, allowing for a larger line of credit when it comes to launching a new freelance business.
  • Quick & Easy Approval
Due to the collateral, NBFCs maintain a simple loan against property process for application and approval. If all your documentation checks out, some lenders may even approve your loans within 24 hours.
  • Limited Rate of Interest
Secured loans generally charge lower rates of interest, and LAPs are no different in this regard. This feature of the credit keeps the cost of this loan low, making a loan against property the ideal funding option to start your business.

Inquire about eligibility criteria and the documents necessary to avail such a loan. Doing so makes the loan application process simpler and time saving.
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Friday, May 17, 2019

What to Consider when Applying for the Loan Against Property?

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A loan against property is easy to avail with minimum documents. The approval of this loan takes a few hours and is easily disbursed with a simple process. Even though, you need to keep a check on a few things before considering a loan. Check for your loan against property interest rates, statement, repayment terms, documents, tenure, amount etc.

Rate of Interest: when you avail the loan against property, it is best to find the available lenders in the market and consider the best one. Look for the lender that offers loan at the lowest interest rate. Just compare the rate online and take a few minutes and make a wise choice.

Additional Read: Buy Your Dream Home In Nasik With Flexi Loans

Charges and Fees: When you avail loan against property, lender charge some set of fees or charges. This mainly includes processing fees, late payment fees, administrative charges, know the hidden charges, extra fees, etc. These charges and fees may push up your loan amount and will put an additional financial load.



Tenure and Amount: Always decide on the loan amount that you actually require. Check with the lender about the amount approved. Do not take an extra loan as this will put an additional debt burden. Select the tenure as per your monthly earning and repayment capability.

Repayment Terms: The lender you pick should provide you with flexible repayment terms and options. You should be free to select the EMI and repay when possible.

Check your loan against property statement when you avail the loan. Bajaj Finserv is the best lender that offers a customised loan. It also provides a pre-approved loan that is easy to apply and get approved.
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Location: Pune, Maharashtra, India

Tuesday, May 14, 2019

Quick Guide on Debt Consolidation Loan

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Debt consolidation is actually used for taking one single new loan or debt against multiple loans or debts. Generally, this new loan is used for financing your multiple non-asset debts like student loan, credit card bills, medical expenses, etc.

How Does Debt Consolidation LoanWork?


As mentioned above, a debt consolidation loan is a new loan that’s taken for repaying other existing loans. There is a single creditor in debt consolidation loan. You have to pay a single creditor every month for this loan, which the creditor is going to take care of your other debts for the entire month.

In debt consolidation, a new credit with interest rate is paid to the creditor just like other debts. You can easily cover your rent payments, credit card payments, utility or medical bills by the debt consolidation loan.


Types of Debt Consolidation Loan

Debt Consolidation through Secured Loans

The advantage of opting for one secured debt consolidation is that you have to pay less interest rate on the loan amount. Because this is the secured loan, it reduces the risk associated with the loan. This further makes this loan more affordable and you also get benefits in the form of tax deductions.

Debt Consolidation through Unsecured Loans

It is another good option for taking a debt consolidation if you don’t have any security or collateral for pledging. Certain banks offer unsecured debt consolidation at a low-interest rate. But you need to be careful when choosing a bank, as you need to find the one offering low-interest rate for an unsecured loan. The benefit of this type of debt consolidation loan is that your collateral won’t be at risk.
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Location: Pune, Maharashtra, India

Thursday, May 2, 2019

How Loan Against Property Helps you Ease the EMI Burden

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Personal loans are much more convenient and conducive since they are easily available, and the lender offers end-usage flexibility with the sanctioned loan amount. That said, the loan against property interest rates is higher compared to secured loans, and so the EMIs are, for the most obvious reasons, higher. For some it might be easy to manage the EMI even if it is expensive, others might just succumb to the pressure.

That’s when loan against property becomes a convenient options; offering the loan at a lower interest rate which result in lower EMIs. The other factor which promotes loan against property as a solution to lower down the EMI burden is the wide repayment time. Since the loan is secured by a collateral; the associated risk factor is on the lower side for the lender and hence they offer a wider repayment tenor. A wider repayment tenor allows the lender to spread the principal and interest component for a longer number of years which results in lower EMI for borrowers.



Apart from that, below are a few reasons why loan against property helps reduce the burden: -

> Loans are secured by loan insurance. Thus, if anything happens to you, your family won’t be burdened with EMI payment.
> You can remortgage the same property with the same lender for a second loan at a lower interest rate and use that for debt consolidation.
> Lastly, here too the loan amount comes with end-usage flexibility which allows the borrower to use it for anything they want to. 


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Location: Pune, Maharashtra, India

Thursday, April 11, 2019

Loan against Property – Best Way to invest in Real Estate

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With the recent high growth and return experienced in real estate, people getting attracted toward this investment option. Investing in property helps to earn a good return; enough rent each month or even resale at the best price. Investing in property requires huge money and there are desperate people who do not have a substantial amount in hand. For such desperate people, loan against property is the best option to raise funds and invest in property with high return.  This is now a smarter way to invest in appealing and high returning real estate property.

Before applying for the loan against property, it is best to know it better. This is a secured loan that is availed by pledging existing property. The loan amount is determined based on the value of the property. Just look for the right property to invest and avail the Loan against Property from Bajaj Finserv. This lender not only offers loan at affordable prices but also ensure that the loan amount is enough to help you invest in desired real estate property.



How feasible is availing property loan for real estate investment? If you do not have enough money to buy a property, it is best to avail mortgage loan. This will help to own a new property and get monthly rent that will fetch you a regular income. With this rent, it is easy to pay EMI. Therefore, the smart way to invest in real estate is to opt for the property loan and invest in real estate properties with best returns.
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Location: New Delhi, Delhi, India

Wednesday, March 27, 2019

Best Ways to Pay Back your Debt in No Time

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Getting financial assistance from lenders is probably one of the best ways you can ease some of the financial burdens from your shoulders. With that information in mind, it is best that you know about some easy tips to pay your debt back to the lender. Read to know more Taking a loan and not paying it back timely could result in costing you a lot of extra cash. Here are the best ways to pay a property loan properly: Avoid Paying Low EMI to the Bank The process of breaking the return process into steps is EMI, instead of paying low EMI’s start paying it in high amount. It not only helps you to pay in time but also ensures that a less hassle while repaying that loan against property.
Manage your Cashflow Keep track of all the transactions and investments you make, to build a strong financial structure for yourself. Maintaining a detailed report on things that you have invested upon and things on which you want, helps in understanding the goals better. Close not so important investments instead direct those cash into your mortgage loan. Do Advance Payments Advance/pre-payments ensures that the principal amount and the EMI that one needs to pay to get less. A lesser amount to pay will mean that you don’t have to worry about putting your entire salary in the bank, directing bonus amount to the bank is a great way towards repaying the amount to the bank in time. Have an idea of the amount you will be repaid Before taking or applying for that loan, make sure that you do some online research. Using online loan calculators for that is an excellent approach. Most of these calculators are accurate and are close to proving the correct results. Talk with bank officials and the body concerned regarding the rate of interest that you need to pay in the return process.
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Location: New Delhi, Delhi, India

Thursday, March 7, 2019

Is asking your children to pay off the education loan OK?

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Of course it is OK to ask your son or daughter to pay off their education loan which the parent has taken on their behalf. The issue is not in asking them, but in the belief system that we have embedded in us as part of our core values wherein the parent is supposed to take care of their children till the time they can. This is mostly an Indian belief as in the West, college students who need to take student loans, pay it off on their own.
Most of such students work after their classes in order to earn some extra money and once they graduate they pay off their student loans out of their own pocket. In India, the scene is completely different. Not only do we not work when we are students, we also expect our parents to pay off our student loans even when we start earning.



Yes, there is no denying the fact that no matter in which part of the globe you happen to live in, higher education loan will always be significant and difficult to pay off but not impossible. There are a number of ways of reducing the interest rate and thereby decreasing the burden. One of the best known ways includes making use of loan against property. It can be used to repay the education loan and being a secured loan with a long repayment tenor, the monthly installment will go down considerably and thus repaying back the same should not be a burden in any way.


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Location: Mumbai, Maharashtra, India

Wednesday, February 27, 2019

Why Did My Credit Score Drop After Paying Off Debt?

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Paying off the student loan might sound to be the easiest and the best thing that you can do to make your monthly running income seem more in your hand. Although financially it may sound good to you, it still will affect your credit score negatively because:

By paying off the Debt, you will bring your credit utilisation percent to 0. A credit utilisation percent should be below 30% but not 0 for a good credit score.

By paying off debt, you will end the account activity. As there will be no account activity, the credit score will start decreasing. However, monthly installments keep the account activity running and thus keeps a healthy credit score.



Thus, these factors will lower your credit score.
Minimum credit score required for future loans might not be possible for you.
So even you have repaid your loan, you will have a low credit score, and this will affect your housing loan, vehicle loan or personal loan theta you might want to take in future.
So, avoid paying off debt, instead choose to pay installments on time without delay and keep your credit score high.
Also, do not take two loans at a time; this will allow you to pay installments regularly.
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Location: Mumbai, Maharashtra, India

Thursday, September 27, 2018

Factors to be Aware of before Applying for a Loan Against Property

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A loan against property is a form of secured loan, where you keep the property as mortgage with the bank to get the loan sanction. But, before you apply, you should be careful about certain factors:

First, Documentation Process-
To get the loan approval and even to make your Loan Against Property Application to be successful, you need to submit a bunch of documents. There is no need to figure out what are the relevant loan against property documents required to submit by your own by visiting the financing firm. You can simply find out about all these documents online. 


Second, Eligibility Criteria-
To get a loan sanction, you need to qualify the eligibility criteria of the loan set by the lender.While applying for a loan against property, the first thing that you should check is the eligibility criteria. Nowadays, there is no need to physically visit the bank or the financing firm office to gather information, you can get all information online and apply for a loan through online application process. You should compare among all lenders, check their eligibility criteria and then choose which lender is offering the most basic eligibility criteria. 

Third, Online Calculators-
Before applying for a loan against property, you should be careful about the interest rate. Interest rates depend on a variety of factors, and it eventually impacts the EMI of the loan. So, when it comes to the online application process, you must find the loan against property interest rate first and then use the loan calculator to get the exact EMI amount. 

To know the other factors, read: A Loan Against Property: Why is it Better?
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Location: New Delhi, Delhi, India

Tuesday, September 25, 2018

What You Must Know About Loan Against Securities?

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Loan against securities is usually provided as an overdraft facility in the account when you deposit your securities. It lets you withdraw funds from the account and pay interest only on the amount used for a certain period. It is a wise move especially when you are in need of funds and you do not wish to break off your investment.

Know the eligibility criteria for this loan - 

Opt for loan from leading NBFCs as they are highly experienced institutions which understand your need for funds. Thus, the loan against securities is available on an easy-to-meet eligibility criteria which states that-

  • The applicant must be a resident citizen of India
  • They must be at least 21 years of age
  • The applicant must be a salaried or self-employed professional with a regular source of income

The process requires basic paperwork which is as below - 

  • KYC documents
  • Address proof (Aadhaar card)
  • Proof of securities pledged as collateral
  • Passport size photograph



Lenders offer high value loan amount up to Rs. 10 crores against the securities. You can easily apply for the loan against securities online by filling up a simple e-form at the lender’s website. Their representative will request for paperwork and upon their verification you can avail instant approval with quick disbursement.

Read More Here: From interest rate to eligibility criteria: All you need to know about Loans Against Shares
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Wednesday, September 5, 2018

How To Better Manage The Process For Loan Against Property?

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Leading NBFCs offer instant loan approval and quick disbursement in case of loan against property. In order for you to enjoy these benefits you must take care of few things while applying for the loan to help your profile get noticed and processed faster.

Documentation

Maintain proper paperwork of bank transactions in the form of statements and source of income. Owing to growing demands of a mortgage loan lenders have relaxed the eligibility criteria for the loan and thus require only basic documentation for it. To speed up the approval process maintaining and submitting accurate paperwork will help your profile get noticed. Also the Interest Rates on Loan Against Property is quite lower, so it acts as the best option for applying.



Minimize FOIR

FOIR is Fixed Obligation to Income Ratio and is a ratio of fixed monthly obligation and the total income of an applicant. Lenders take this into consideration and it must be kept under 50% to secure the loan. It means that all credit card dues are paid off on time and there are no outstanding loans to help your application gets processed faster.

Income Stability

Maintain a consistent income source such as a job. Avoid changing employers often as this may affect your loan application negatively. Besides, working for a reputable employer will also increase your chances of getting the loan.

Collateral 

 Ensure that the collateral or property against which you apply for the loan is free from any litigation and does not have any loan running on it. Get the property evaluated by a certified chartered accountant and keep the documents ready so you can obtain up to 60-70% of the property value as loan (a percentage usually provided by the lending institutions). 
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Location: New Delhi, Delhi, India

Thursday, August 30, 2018

How to Enhance your Loan Against Property Eligibility?

11:48 AM 0
People generally try to get quick and easy loan approval, so they choose an unsecured loan. But, when they realize the difficulties such as a higher rate of interest and maintaining a high credit score of above 750, they prefer to choose a secured loan. 

If you have any property, residential or commercial, you can put that property as collateral or as mortgage with the lender and get a loan against property at a much lower rate of interest. You just need to fulfil the simple Eligibility Criteria of the loan Against Property set by the lender and you will easily get the loan approval. 



Submit Relevant Property Documents

You need to submit the documents of the property against which you are applying for the loan. Those documents are:

● Property registration papers
● Previous registrations
● Property map
● No Objection Certificate (NOC) from local government bodies like Municipal Corporation, municipality, Gram Panchayat, and Urban Improvement Trust (UIT)

Submit Personal Documents

You also need to submit some personal documents to get a loan against property. Those are:

● Aadhaar card
● Passport
● Voter ID card
● PAN card
● Driving License
● Valid photo ID card issued by a government or private enterprise

To know the eligibility factors, Read: Tips to Boost Your Loan Against Property Eligibility
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Location: Mumbai, Maharashtra, India

Monday, August 27, 2018

Loan Against Property: Smartest Financing Option

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At times when the borrower is hard-pressed on cash loan against property can be a wise option to consider. As it offers benefits both to the lender and the borrower. In the sense, that you get to liquify your fixed assets easily. While, lenders receive security in terms of the loan such as your property and do not have to worry about creditworthiness of the borrower. Considering the Loan Against Property Interest Rates, the smartest financing option could be regarded as Loan Against Property.


If you are considering to opt for mortgage loan here are important things you must know about.

#1 Once the loan amount is deposited to your bank account you do not have to disclose its usage to the lender. Hence, the loan can be diverted to personal and business financial obligations. These include wedding, travel, business expansion, purchase of machinery for business use and much more.

#2 Loan against property is a secured loan. This is because you pledge your property as collateral/ security/ guarantee towards the loan. In a way, it benefits the lender too as they can trust you easily and offer preferable loan amount.

#3 Talking about loan amount lenders usually offer up to 70-80% of the value of your property as loan. You can avail high-value loan of up to Rs. 3.5 crores.

#4 Lenders such as NBFCs understand your loan use and thus offer up to 2-20 years flexibility in period to pay it off. You can choose to even part-prepay or prepay your loan at minimal charges.

#5 Flexi Hybrid feature is a unique facility offered by lenders on this loan. It allows you to utilize just the amount needed from the loan sanctioned. While, it charges interest on the amount utilized on a daily basis. This helps to lower your EMIs by up to 45% and easily pay off the loan.
Also Read here to know more:- Ease Your Finances With Loan Against Property
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Location: Mumbai, Maharashtra, India

Monday, August 6, 2018

Loan Against Property: The Types and Benefits

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Stuck with a dire need for money? Taking a loan against property can be the fastest and the most conducive solution. A loan against property, as it falls under the secured loan category, has nothing to do with the CIBIL score of the person and hence, anyone and everyone with a decent monthly income can apply for the same and obtain the required amount of money. Having said that, you must have all the necessary details like the loan against property eligibility, documentation, the application procedure, and the interest rates. The Loan Against Property Interest Rates are the lowest in comparison to other loans. Let’s talk about them in detail. 


What are the types of Property for Mortgage? 

Talking of the present market, there are multiple types of loan against property. For example, a loan against residential property - the loan can be availed by mortgaging a residential property irrespective of the nature of occupancy (self-occupied or rental property). So, you can mortgage your self-occupied flat, your ancestral home etc. and obtain a loan against the property’s market value.       


Benefits of Loan Against Property:

Higher Loan Amount: The approval depends on the market value and the repaying ability of the person. Thus, as an applicant, you can avail a higher amount by applying for the said type of loan.  
Watch over here to know more:

Lower Interest Rate: Furthermore, the credit facility is offered at a lower interest rate compared to the other equivalent loan schemes.  

Usage Flexibility: The amount that you borrow from a loan against property comes with end-usage flexibility. You can use the amount for any reason at all without prior mentioning the purpose to the lender. 
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Location: Mumbai, Maharashtra, India

Monday, July 30, 2018

A Loan Against Property: Why is it Better?

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A loan against property has been in existence since ages, yet people still feel reluctant to apply for it owing to the lack of knowledge and understanding. The Loan Against Property Interest Rates are quite low in comparison to other loans. Hence, in this article, we will talk about why loan against property is better than other equivalent options.  



> CIBIL score: 750 and above! This is what you’ll find in the eligibility section of most personal loan proposals available in India. Yes! A person needs to have a high CIBIL score, higher than 750 to avail a personal loan from any bank and NBFC. Without it, they don’t even stand a chance! A loan against property is quite opposite in that respect. Anyone with a decent income, a fitting collateral, and a low debt-to-income ratio can apply for a loan against property irrespective of their CIBIL score.

> Longer Repayment Tenor: Most LAP schemes are available along with a long repayment period which can be as high as 20 years. On the contrary, the other unsecured alternatives are available for a very short tenor.

> Lower Interest Rates: Needless to say, a loan is taken against a property will be available at a relatively lower interest rate compared to any other unsecured alternatives like a personal loan.

> Higher Loan Amount: A personal loan application is highly prone to rejection if the applicant is asking for a very high amount. This is because a personal loan is unsecured in nature and the borrowing limit is always less compared to secured loan schemes like a mortgage loan.

If you are planning to apply for a loan against your property, don’t forget to compare the specifications before applying for a particular scheme.
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Thursday, July 19, 2018

Factors That Affect Loan Against Property

1:27 PM 0
Loan Against Property helps to liquify your fixed assets to help you manage immediate and future financial needs. While applying for Loan Against Property keep the following factors in mind so you can avail maximum benefits from it. These are the RBI or Reserve Bank of India has set few ceilings and slabs to compute Loan To value ratio. Lenders such as NBFCs and financial institutions can sanction up to 90% LTV for a loan amount of more than Rs. 30 lakhs.

> Up to 80% LTV can be sanctioned for a loan amount of Rs. 30-75 lakhs.
> Up to 75% LTV can be sanctioned for a loan amount of more than Rs. 75 lakhs.
                          

Eligibility criteria of the lender play an important role. As the loan is sanctioned based on their criteria and applicant’s individual standing.

1. The applicant must have a stable job in an MNC, a private company or a public sector.
2. They must be between 33-58 years of age.
3. The property pledged as mortgage/ collateral must be free from any litigations and have no existing loan on it.
4. Besides having a credit score of 750+ or more can help the applicant secure a higher loan amount at the affordable rate of interest.

Lenders expect borrowers to maintain a lower ratio of FOIR (Fixed Obligations to Income Ratio) which is between 40-60% to acquire a preferred loan amount and interest rate.

When you apply online you can discuss your requirement and other concerns with your Relationship Manager. Moreover, you can request for login details of your loan amount to easily manage and track the loan from anywhere anytime.
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Location: Mumbai, Maharashtra, India

Tuesday, July 17, 2018

3 Inevitable Documents Required for a Loan Against Property

10:49 PM 0
Planning to apply for a loan against a property to meet your urgent cash needs? Do you know if you are eligible? More importantly, do you have all the documents? Check out the who can apply for a Loan Against Property and the 3 most important documents required to get the application approved.

Who can apply for a Loan Against Property?

Almost anyone with a decent monthly income can apply for a loan against property. The only concern is, their income should be sufficient enough to save just the right amount to pay the monthly EMIs along with managing the regular household expenses.

Moving on, based on the income source and type of employment, the applicant’s are divided into two categories:
 
> Salaried: Salaried individuals are those who are employed by the government enterprises or private/limited companies, and have a fixed monthly income.

> Self-employed: Self-employed individuals are those who run their own business, work as freelancers, or offer consultancy services to other companies. The only way a self-employed differs from a salaried individual is in terms of income. Self-employed individuals don’t have a fixed monthly income. 

The documents required while applying for a loan against property:

1. KYC Documents: The basic KYC documents like Aadhaar Card/ Voter ID card/ Passport/PAN Card/Driving License as the address proof issued by a government-recognized institution/department is required to verify your identity, address, age, and other related details.

2. Proof of domicile: Proof of domicile or the property ownership certificate like registry/gift deed/sales deed/patta papers, a chain of title papers, and property map

3. Income proof: Lastly, you’ll have to attach documents to prove your income i.e your salary slips, bank statement, ITR receipts, or any other detail that verifies your income.
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Location: Mumbai, Maharashtra, India

Thursday, July 12, 2018

Rented Apartments to Your Own Home: How to Plan the Shift?

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For people living in rented homes, the biggest problem is the lack of understanding between the person and his/her landlord. The constant complaints from the landlord become an annoying problem. The words get on your head and make your life a living hell. To be honest, nobody deserves this kind of treatment, especially when you are paying a definite sum every month for using their property. The lower Interest Rates on Loan Against Property acts as a boon to borrowers searching for homes.



In such situations, switching from one rented apartment to another doesn’t help much and the best way to get rid of this problem is to buy a house of your own. You can convert the monthly rental into monthly EMI and shift into your own house. Having said that, with home loans financing only a part of the property’s cost - paying the down payment of the property might seem like a monumental problem, especially if you don’t have sufficient savings to cover the same. Yet, the same can be taken care of by applying for a fitting home loan against property, using a pre-owned property as collateral. 

If the suggestion seems logical but you are still stuck on the horns of a dilemma - whether to buy your own home or not, here are a few things you would like to know about loan against property. 

This scheme comes with affordable interest rates, making it easier for people to apply for Loan Against Property and benefit from the facility. 
The loan amount can be regulated as per the applicant’s need, a higher amount can be borrowed by mortgaging an expensive property. Moreover, you can fund the entire purchase through a loan against property. 
Having subscribed to the facility makes you eligible for certain tax benefits under the income tax laws. 


Lastly, the scheme comes with easy-to-follow eligibility criterions along with minimal documentation requirement, making it easily accessible by all. 


Also Read over here to know more: How to Move Out from Your Rental Home?
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Tuesday, July 10, 2018

How to Calculate Mortgage Loan EMI?

11:12 AM 0
An unsecured loan approval is easy, but a mortgage loan is granted to an applicant only after evaluating some factors such as borrowers’ credit scores, down payment of the borrower, loan duration or loan tenor, EMI affordability of the borrower.

You should first calculate the EMI to check whether it is affordable for you or not. The best way to calculate the mortgage loan EMI is by using an online Loan Against Property EMI Calculator. You must try to get a lower interest rate and then use a loan against property EMI calculator to calculate the exact EMI amount that you need to pay. You can also evaluate the tenor and installments before taking the loan. You also need to prove that you won’t be a defaulter of a loan. 



But, before you take any step, you should be aware of the usage of the calculator:

Method Of Payment

You can choose any of the two payment methods depending upon your income inflow.

> Step-Up Repayment Method:

This method is for the beginners who can start with lower repayments of EMI amounts initially and later opt for faster repayments with higher EMI, as their income will increase.

> Step-Down Repayment Method:

This method is for those who are nearing their retirement stage. When they have a steady regular income, they will be able to make higher payments of EMI in the initial level, later during post-retirement they can subsequently switch over to lower amounts. 

Thus, mortgage loan calculator will help to find the percentage of income that you can afford while repayments. 

To know the other factors, Read: Guidelines to Calculate Mortgage Loan EMI
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Location: New Delhi, Delhi, India