The real estate sector of India is one of the fastest-growing sectors of the country and is expected to contribute approximately 13% of the total GDP. Various government-mandated schemes are working towards the realisation of this target by boosting the supply of housing and providing income tax waivers. Major financial institutions offer a joint home loan facility on such credits as well to make housing loans more affordable. Housing sector of India at a glance 50% quarter-on-quarter rise in new housing launches was witnessed between April and June 2018. 8.09 million houses were sanctioned to be built in May 2019 under the Pradhan Mantri Awas Yojana. 25 basis point deduction in the repo rate was announced by the governor of RBI in April 2019 to increase credit availability. This directly reduces the home loan interest rate levied by major financial institutions. The booming housing sector in India is further boosted…
A credit score is a crucial factor that lenders take into account when you are applying for an advance. This is because holding a good CIBIL score indicates your creditworthiness and shows minimum chances of defaulting on a loan. Therefore, borrowers with bad credit scores often find it challenging in procuring the best home loan in India, as lenders consider such applicants as risky. However, although it might be pretty challenging to avail loans with poor credit rating, it is not impossible. Here are some tips you can follow to avail a home loan in India with bad credit score – [A] Apply for a joint home loan In case your credit score is low, but your spouse holds a good CIBIL rating of 750 or above, make her the co-applicant for a joint home loan. Moreover, if your spouse has a steady income source – lenders will take that…
When you decide to take a home loan from the bank or NBFC, you enter a long-haul obligation, considering their repayment stretches up to 30 years. You not only avail tax benefits, but it also has some impact on the present and future finances. Therefore, you should aim to pay off the loan as soon as possible. You need to also carefully manage other related factors as well such as repayment tenure and monthly instalments. If you wish to foreclose your housing loan, follow the mentioned tips – Short tenure: When you take out the credit, the term plays a crucial role in closing the loan early. Always opt for term that is as short as possible as it allows you to repay the credit quickly. However, this could also mean shelling out higher EMI amount because the tenure has direct impact on your EMIs. When you use the home…
In recent years, the various incentives undertaken to make housing loans affordable for first-time homebuyers boosted the growth in housing credits to 17-19% in FY 2019. With increasing affordability, the risks of defaulting on housing loan have also reduced significantly. However, even with these factors at play, it is important to make sure that you repay your loan well within time to avoid falling into a debt trap. One of the best ways to minimise the risk of defaults is to prepay or foreclose your housing loan through higher EMIs. You can check the positive impact of prepaying your advance by using a calculator for home loan prepayment. Note that during the initial months of your housing loan repayment, the interest component remains higher than the principal in your EMIs. As the loan tenure reduces, the principal amount becomes higher than the interest payable. Advantages of prepaying your loan with…
Buying your dream home is not too far away because you can opt for a home loan to finance your house purchase needs. Home loans are very popular and with many lenders offering home finance, getting this loan has become very easy. But before you opt for a home loan, there are a few things you need to know about the very nature of these loans. Knowing these facts can help you plan your loans/ Here are things to consider before taking a home loan: Fees and charges: The loan interest is not the only charge that you will have to pay on a home loan. You will also need to pay loan processing fees. There are no charges for pre-payment or part repayment of a home loan which means you can save funds if you pre-pay parts of your home loan. Loan tenure: The home loan tenure can be…
Buying a house is something everyone plans and dreams of throughout their lives. And many buyers who are ready to buy a house lack funds. These buyers prefer to opt for home loans, and lenders seek a 20 percent down payment for that. Since they lack money or have low income, making payments to these lenders can be difficult for people. After retirement, one can use his money to buy a house. But, is it a good idea to spend all the money you have earned with so much hard work all these years into buying a house? Employees Provident Fund (EPF) is a scheme under the government that helps members of EPFO to use 90 percent of their funds for making the down payments of their new houses. Under this scheme, a person can get a loan which is of the amount 24 times more of their wages. Employees…