5 things you need to know before opting for a home loan.

HOME LOAN EMI CALCULATOR

A home loan is potentially one of the biggest decisions of your lifetime. And to ensure you come out of this decision smiling and with a home to your name, it’s extremely important you get the preparation right before even applying for the loan. Like they say, what begins well ends well? Keeping this in mind, the following article will highlight some of the things you should see to before you apply for a housing loan to ensure you enjoy a smooth and hassle-free borrowing experience.

1. Your finances.
Before you apply for a home loan, you need to have an exact idea of your finances. You need to figure out the budget of your home, how much of the purchase amount you can cover with a down payment, the loan you need and the amount you are eligible for. Begin with your eligibility so you can then decide the budget for the purchase and the amount you’ll need to foot out of your own pocket. Most lenders have an eligibility calculator that you can use for that should give you a rough but better idea of your eligibility.

2. Your credit score.
Credit ratings are very important. A good score will ensure a smooth application process and also bring quick approvals. A poor score, on the other hand, could hinder your plans or cause you to settle for a poor loan offering (the better loans require higher scores). Generally, CIBIL is one of the more recognized credit rating companies in India for a home loan. A CIBIL score above 700 is considered as good, anything below that, not so good. So get your credit score, look for any errors in the report and see if you can improve the score before applying.

3. The repayment schedule of the home loan.
It’s important you know what your repayment schedule would be like before you apply. This way, you can see if you can handle can handle the applicable EMIs or if you’ll need to look at a smaller amount. Further, having the entire repayment schedule before you will help create better financial plans to cover the EMIs. Using an EMI Calculator will help you get the entire repayment schedule tabularized and neatly presented for you.

4. Upfront costs.
Besides the down payments, there are a number of upfront costs you need to account for. They include the processing fee, stamp duty, and registration fees. If you are going to take an insurance policy as a safety net, the premium is another cost you would have to consider.

5. Terms and conditions.
Before you sign along the dotted line and commit to the decision, you need to know all the terms and conditions. You will have to set aside time and go through the fine print thoroughly – it won’t make for leisurely reading but it’s a must. If you find any points that are above your understanding or that require clarity, do approach the lender and have your doubts cleared before finalizing. It’s extremely important you go into a home fully aware and informed about what you are getting into.

These were some of the more important things you need to be well aware of before you take a home loan. We hope these pointers provide you a smooth borrowing experience and help you come out the decision as a proud homeowner and with an immense sense of accomplishment.

Good luck and all the best!

4 Tips to save money on your housing loan

Buying your dream property is one of the biggest steps in your life. It’s like a sign of financial maturity and offering stability for the near future. Taking a property means chasing the preferred location & its vicinity, budget, builder authorization and finally how to finance it. Well, with private finance companies willing to offer a home loan, financing your dream is no more a herculean task.

However, when one takes the home loan there is a lot of aspects which needs careful consideration such as interest rate, processing fee, principal amount, etc. Most of us are so concerned about the monthly installment that we barely give our home loan a second thought. There are a number of important steps that can be taken to ensure that the money can be saved on your housing finance. So, here are a few tips that will help you save money on your housing loan:

Do thorough Research

Shopping around for home loans need proper market insights and help you choose the best-suited financing option. Comparing loan and negotiating with lenders can save you a lot of money. Once you know what lenders have to offer in terms of rates and fees, you can negotiate for better housing loan deal. Lower the interest rate, lesser you would be paying and more savings on your total cost you will bear.

Home Loan

Improve Credit Score

Your Credit score has a direct impact on the interest rates. Hence, it’s always important to keep improving your credit score. So, that you can negotiate with the lenders for better rate deal. When applying for home loan, ensure that you improve your credit score at least six months to one year before the application. If the credit score is low, the lender will reject your application. And if the applicant has a good credit, score he or she is considered credit-worthy and lenders place a trust on him or her.

Opt for Refinancing

Many time lenders lure with an interesting deal, which later proves to be costly on your wallet. If it's proving costly you can talk to other private lenders who are willing to reduce the interest rate for you. A good credit score, better income source, and timely repayments can put in a comfortable position for negotiating with the existing lender or switch lenders and opt for home loan refinancing. One must be aware of the costs associated with the balance transfer option.

Tax Benefits

One of the best ways to save money is redeemed tax benefits. You're entitled to tax benefits and it can help you save money as you can on the interest. For instance, under section 80C, a housing loan borrower can claim for a tax deduction of up to Rs 1.5 lakh if he or she is a salaried individual, and for self-employed, they can available up to Rs 2 lakh under section 24 (b) of the Income Tax Act, 1961. Taking a home loan is a major financial decision of life and it’s important for the borrower to check wherever possible to save money and then make an application.

Online applicants can avail interesting deals as well.

A few reasons why EMI calculator has proved to be a boon for the people

There are a number of banks and NBFCs (non-banking financial companies) in India which provide financial assistance in the form of loans. The people can make use of these loans in order to take care of their business as well as personal needs. The housing loans have proved to be quite quintessential in relieving the worries of the common man. The middle-class citizens of India can now dream to own a place of their own, thanks to the housing loans provided by banks and NBFCs (non-banking financial companies).

People can make use of the home loans in order to buy a new plot or residential property and even to refurbish any pre-existing property. The financial institutions give out secured loans and charge interest rates on the loaned amount. An EMI Calculator comes in handy in these situations, as it helps you to calculate the equated installments which you would have to pay out every month.

An EMI (equated monthly installment) is calculated after combining the principal loaned amount, interest rates on the amount and the tenure of repayment. Your monthly installment is drastically affected by the changes and the choices that you make in either of the variables. For e.g., if you choose to opt for a shorter tenure then you will have to pay lower interest rates but the same is applicable in case you want to switch for a longer tenure. Thus, an EMI Calculator helps you significantly, as it gives you an insight as to which plan is best suited for you.

This calculator is available online and can be used by anyone and at any given time. The fact that people can make use of this tool from their phone or laptops has proved to be a great boon for the people. EMI Calculator has helped people to save their valuable time; which is otherwise wasted on making multiple bank visits.

The various advantages of making use of an EMI (equated monthly installment) calculator are as follows:

1) By making use of this calculator you can get your future installments calculated in advance. Thus, you can plan your future repayment schedule in advance and ensure that you never default on any repayment. This will help you to maintain a good credit history and live a hassle-free life.

2) An EMI Calculator is not just available for the calculation of a home loan installment amount. There are a number of other loans which can be calculated by making use of an online EMI (equated monthly calculator). The various other loans which can be calculated are education loans, personal loans, etc.

3) You can calculate and achieve multiple results for a certain principal amount that you borrow from the financial institutions. This gives you a rough idea about the various options available in front of you. Therefore, you can make use of this tool and choose the repayment pattern which is best suited for you. Hence, by making use of this tool, you can borrow loans without worries.

A few important factors regarding EMI calculator

The costs of residential properties in India have sky-rocketed in the recent years. Therefore, the middle-class population often finds it difficult to own a property of their choice. Most of the times, people even find it difficult to find a shelter over their heads and have to reside in rented properties. However, thanks to the various home loans provided by banks and NBFCs (non-banking financial companies), people can buy a house, which they always wanted to buy.

The interest rates provided by these banks and NBFCs (non-banking financial companies) are way lower when compared with the interest rates provided by the traditional financiers. Most of these financial institutions have even started giving out their loan services online, and have also started empowering people with various tools such as EMI Calculator. These tools make the loan process easier for the people and encourage them to apply for a home loan.

The reasons why people are opting for home loans are as follows:

Ø The housing loans given out by banks and NBFCs (non-banking financial companies) provide financial assistance to people, in the form of capital. People can make use of this money in order to buy a new property or refurbish their previous property. They can even buy a plot of other property of their choice.

Ø There are special discounts on interest rates given out to women in India. This empowers the female population and encourages them to live independently. Also, the interest rates of home loans for non-resident Indians are the same as the interest rates for resident Indians.

Ø The repayment of the loan amount is done in the flexible form of EMIs (equated monthly installments).  The banks and NBFCs (non-banking financial companies) also provide EMI Calculator to people, so that they can plan their future repayments in advance.

An EMI (equated monthly installments) calculator is an online tool which calculates your monthly installments in advance. All you need to do is put in your principal loan amount and the repayment tenure you wish to opt for. Thus, by making use of the following pieces of information, your interest rates are calculated and an equated amount is given out. This helps you to plan out your repayments so that you don’t end up defaulting on a payment.

The various advantages of making use of EMI calculators are as follows:

1. These calculators are way more convenient to avail as you can make use of them on the go. Making use of these tools is as easy as grabbing a bite, all you need is a phone or a laptop and a good internet connection. Therefore, you end up saving a lot of time which is otherwise wasted making those endless bank visits.
2. An EMI Calculator is user-friendly in nature and can be used by anyone and everyone. They are specifically made in order to cater to the masses. Hence, all you need in order to make use of this tool is your principal loan amount and the tenure which you are opting for.

Some vitals facts to consider while applying for housing finance.

When you start searching for home loans, it means you're planning to move into a new flat and make a new beginning of your life.

Home Loans would be an ideal way to finance your abode, however, managing it efficiently is not an easy task and you will have to pull up your socks right from searching the property, the lenders, interest rates, monthly EMIs and flexible ways of repayments. The right housing finance provider will not only save time and money but also give a smooth and seamless processing experience through the loaning process.

You will have to assess your current financial liquidity and then arrive at a suitable loan amount you can afford. While deciding the amount you will have to take future income patterns, interest rates fluctuations and your lifestyle need as well.  Paying your EMI is something that you can easily calculate using online home loan EMI calculators. This way you will get a thorough future plan.

Below are few factors to consider before applying for a home loan:

Eligibility:

You can just visit the lender and ask for the amount you desire. There are certain factors under which your eligible loan amount would be evaluated. These are your income source, risk appetite, job or business stability, age, existing debts, property location, its market value and future value, additional income source and most importantly your credit score. After evaluating these facts lenders will offer you a particular loan amount. Lenders generally give loans up to 80 % of the total property value and it might vary based on the eligibility of the loan applicant.

Types of loans:

Home Loans serve as a host of purpose. Right from buying a new or resale property to constructing your own dream home. Home extensions to home improvement loans and plot loans, rural financing, Balance transfer are some of the categories offered by pioneer players of the market. You can visit the branch or chat online to know more about their interest rates, loan parameters, processing fee, and general terms and conditions.

Lenders Companies & banks:

It is obvious we will try to save as much as possible in terms of monetary benefits. However, other than interest rates, the post-sale service also matters a lot to consumers. One often looks for best customer service like personal assistance, understanding requirements and helping through the home loan process such as guiding you through interest rate calculations, tenure, repayment options, terms and conditions, policies and other parameters. One should look for the lending institution in a holistic way to get the best services from them.

Interest Rate:

The interest rates form the crux part of the entire home loan process. Interest rates can be fixed or floating, partial fixed-floating. There is a number of ways where you can negotiate for better interest rate deals such as having a good income source, good credit score, a property that has rising value, joint application, etc. This way you can bring down the costs of the interest rate on the home loan. A reduction of even 0.05 -0.10% can make a huge difference in your repayment amount.

Hidden Charges:

One should be aware of all the charges like processing fee, pre or post penalty charge, cheque delay, bounce or is-electronic payments, service, and administration fee, etc. All the charges will be hit upon the percentage of the home loan amount so it's going to impact your finances. Therefore, you have to give due importance to every aspect before you sign on the dotted lines of your home loan application.

Calculate your monthly installment with easy online way

Are you planning to take a home loan and quite confused about what would be your monthly installment? Well, this is a common question that floods everyone's mind when planning to apply for a housing loan. Since, this is one of the biggest borrows in life you have to be careful and understand the loan expenses from every front like interest rate, principal amount, processing fee, administrative charges.

It's because a slight misjudgment in calculations will costs you a bomb on your loan value. Therefore, it’s important you compare apple-to-apple and then carefully choose your lender as well as the principal amount.

In olden days, people use to sit with experts in banks and private lender's office to manually calculate the amount, the interest rate occurred, and equated monthly installment. However, with technology at its' par, you need not worry about the tedious calculation because the home loan EMI Calculator will calculate your EMIs for you within a couple of minutes.

With EMI Calculator you will be well-informed about your loan and its detailed structure even before you approach the bank or non-banking finance company.

EMI Calculator gives you a clear picture of your monthly installment when you enter details like your loan amount, tenure, interest rate and processing fee. They are quite simple and easy to use tools available on some of the leading banks and private players who are willing to offer home loans. They are a fast and reliable source of information to calculate your home loan monthly installment and the good thing is it won't costs a penny in your pockets when you use EMI Calculator.

When applying for a home loan, the loan amount will be your first option. Once you decide on the property and its price, you have to calculate your down payment as well. Also, you need to know the tenure of your home loan. Ideally, you can opt for the tenure of up to 25-30 years. However, borrowers have to bear in mind the longer the tenure of your loan, higher would be the amount you have to pay back. You can modify the tenure on the EMI Calculator and choose a suitable tenure that will work for you.

Once you have put the loan amount and tenure on the EMI Calculator, the next thing would be entering the interest rate being offered by the lender. You can easily check online the various housing loan rates being offered by lenders online and enter this in the calculators.

Generally, lenders charge around 1-2% processing fee on housing loans that need to be accounted for as well when calculating your monthly installments.

EMI Calculator available online also have the option to display the amortization details of your housing loan. They help you understand your principal loan amount, the interest rate paid and the total outstanding details on a yearly, half yearly basis.

Home Loan EMI Calculator is the easiest way to cut down the hassle of tedious calculations, save your time and energy and also get an exact structure your monthly installment. So, what you're waiting for? Use the EMI Calculator and kick-start your dream of owning your home!

5 things that make for the best home loan.

The best home loan – it’s something every potential borrower is looking for when considering housing finance loans. Contrary to common belief, the best loan isn’t the one that comes with the least charges. Rather, the best loan is one that suits your needs the best and covers every possible aspect to ensure your journey through debt is a smooth and hassle-free one.

In case you are in the market for a home loan but aren’t exactly sure how to choose the best for your needs, this article will cover 5 things that you should look for when on the hunt for the housing finance loan for your homeownership plans.

1. LTV ratio.
The best home loan will come with high LTV or loan to value ratio – a financial term lenders use to express the ratio of a loan to the value of an asset purchased. Most lenders will provide up to 0% of the property’s value as the loan amount, depending on the loan slab you fall into. A higher LTV means you have to arrange a lower down payment ensuring you become a homeowner at the least possible cost out of your pocket.

2. Longer tenures.
The longer the tenure, the easier it is to repay a loan. This is because when you opt for a longer loan tenure, you spread out the repayment over more months resulting in lower EMI amounts. Sure, longer tenures also mean more interest payable but you can always cut short the tenure to reduce the total interest paid by making the prepayment as and when you are in a financial position to do so.


3. Lower charges.
Besides for the interest rate, there are a number of expenses that accompany a home loan. For instance, when you apply for the loan, you’ll have to pay a processing fee which could be as much as 2% of the total loan amount. So if your loan is of 20 lakhs, the processing fee is around 40K. Other charges include prepayment charges, document handling charges, stamp duty, late payment charges, etc. Remember to compare all the charges carefully before selecting a lender.

4. Value-added services.
Some lenders will offer you expert legal and technical counseling to help you make the right home buying decision. This will be very useful considering that taking a home loan is big-ticket debt and you’ll any and all the help you can get to ensure you make an informed decision.

5. The best home loan comes with multiple repayment options.
Another vital factor you need to look for is the number of repayment options being made available to you. The more options you have, the easier it will be to choose a plan that suits your financial needs and requirements. Most lenders offer at least 5 different repayment plans.

Look for a loan that provides you all above factors at the least interest rate; the one that does is the best home loan for your needs. We hope this article has been helpful, good luck and all the best.