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.

Tips to save your pockets against high-interest rates.

Home Loan lasts for a span of around two to three decades. Life may not be merrier each day, at times you might have to face steep inflation, costs cutting, job loss or recession, etc. So, it becomes important you save some bucks on your home loan. So, here are few tips that will help you save from the brunt of higher interest rates.

Negotiate with a loan officer

You would be happy to know a negotiation is a powerful tool. It helps you to bring down your interest rates to great extent. Your CIBIL report plays an important role in reducing interest rates. With a good CIBIL report, you can get some rebate on your interest rate and processing fees.

Make more down payments

Although, it’s an irony that you apply for a home loan because you don’t have ample of money to buy the home in cash, however, it would be wise if you pay more money towards down payment. That's because it will save your money on the interest component in the end. It's a good mantra to reduce your interest burden.

Keep CIBIL score clean

Many times incorrect details, late payment, bad records in CIBIL score will only lead to your home loan application rejection. So, it would be wise enough to make all your payments on time, eradicate any discrepancies in your report talking to the credit bureau, as it will get attractive interest rates and flexible ways for loan repayment.

Look for seasonal offers

In their quest to get good business, lenders often bring great home loan deals at regular intervals. So, don't forget to take advantage of these offers and avail an attractive interest rate. Home Loan is an adjustable mortgage wherein you pay low-interest rate in the initial phase, but then over the years, you bear higher interest rates. Therefore, it would be better to do proper research in terms of the interest rate applicable, principal amount, switching costs, prepayment charges, processing fee before you're willing to take any offer.

Make Partial Payment

Whenever any bank or finance company allows you to make the partial payment you can go for it. If you can make a partial payment, apart from your regular EMI, it would be helpful to reduce your loan burden in the long run. So, wherever you receive Christmas or Diwali bonus, any incentives earn, any fund maturity amount received you can divert the funds to make part payment, you will end up saving a lot on the interest component.

Take loan online

Many reputed private finance companies and banks have introduced websites that have complete details of their customized products. Right from new home loans to loan against property, loan for NRIs, home renovation loan, plot loans, you will get a detailed information about interest rates, tenure, repayment options and more. Right from the cozy corners of your home or office, you can fetch details required to apply for dream abode.

These are some of the ideal ways to help you save more, and pay the home loan faster and don't compromise on your emergency funds as well.

5 things you must do before taking a home loan.

A home loan is a huge decision. There are so many things you need to watch out for and some many tinny details you need to see too. Moreover, the fact that a housing loan is something you need to deal with for long periods of time, sometimes up to 30 years, it’s essential you make all the right choices or else you might be staring down the barrel of prolonged financial turbulence.

Thankfully, if you keep a few parameters in mind and do a good amount of research and planning before going into the decision, chances are you’ll have a smooth housing finance journey.

To help you with your preparation, this article will highlight 5 things you must do before opting to borrow funds to finance your homeownership plans.

1. Compare funding options.
The first thing you should do when considering a home loan is a shop for options. Check out the funding packages on offer, the interest rates, the extent of funding on offer, the tenures, the charges, etc. You shouldn’t look for the least interest rate or the highest funding, instead, you should look for a finance option that offers to meet your needs and requirements better.

2. Use home loan calculators.
Calculations and financial planning is the framework for a strong repayment structure. Therefore it’s essential that you get the math right and create concrete budgets way before you even apply for the loan.

You can use an EMI calculator to find out the kind of monthly payments you’ll have to deal with, the loan amount you can afford, etc. You can use an eligibility calculator to find out just how much a lender is likely to provide you with a loan amount and repayment calculator to chalk-out thorough repayment plans.

3. Read reviews.
The experiences of others will provide you with valuable insights into the workings and service quality of a lender. They will tell you, roughly, what to expect when you borrow from a certain financial institute or bank. Therefore, it’s essential to read-up and sees just how a lender treats its customers as you might soon be one.

4. Speak to a financial expert.
This is vital, they’ll tell you what kind of home loan you should opt for keeping in mind your current financial state. You can learn how to save money through the tax benefits of a housing loan. They’ll even guide you as to which type of interest rate, fixed or floating, suits you better. You can have them go through the terms and conditions of your loan offering to highlight any points you should be worried about or approach the lender for clarification.

5. Prepare yourself.
Get a good down payment ready, work on your credit score if it’s poor, find out all the documents needed and ensure that you are fully prepared to take on debt. Because, like they say, what starts well, ends well!

We hope this article will help you and your home loan decisions, good luck and all the best!

5 reasons why taking a home loan is a good idea these days.

Some people are afraid of taking a home loan and going into debt. The idea of having to commit a good part of their monthly salary towards and outstanding loan seems like a scary prospect to them. Other lenders do not wish to pay the price of housing loans, otherwise known as the interest.

However, keeping in mind these two considerable issues with a housing loan, there are plenty of reasons why they still make great financial sense and this article will highlight 5 of these reasons that will, hopefully, help you see these financial products in a different light.

1. They make buying property easy.
Anyone with plans to own property in India will be met by a huge hurdle in the form of the real estate prices; which, in today’s day and age, seem to be shooting through the roof and rising at an exponential rate.

However, opting for a home loan will ensure these exuberant property rates do not thwart your homeownership plans. These financial aids provide you a major chunk of the funds you need to fulfill your purchase plans.

2. Home Loans help you buy into one of the best investments ever - property.

The rates at which property prices are going up make real estate in India one of the best investment opportunities out there. Unfortunately, to buy into this lucrative investment, you’d need to have a sizeable amount of funds. The kind of funds you can easily procure through a housing loan.

With a housing loan, you can invest in Indian property and become a homeowner much quicker as opposed to waiting for an eternity to save the money you need to buy and invest in real estate in India.

3. Favorable interest rates.
Another very good reason to opt for a home loan today is the interest rates on offer. In fact, there’s probably no better time to opt for housing finance keeping in mind the fact that today’s rates are the lowest they’ve been in housing loan history. Some experts even predict these rates to fall further in the future, which could provide you additional savings in time.

4. PMAY CLSS.
Our government’s initiative to provide housing for all has brought into play a beneficial scheme known as the Pradhan Mantri Awas Yojna Credit Linked Subsidy Scheme that aims to help people from medium to low-income groups save substantial amounts of money against a home loan.

As long as your annual household income doesn’t exceed Rs. 18 lakh, you can save up to 2.67 lakh using the interest subsidy provided under this scheme.

5. A home loan can help you save taxes.
The principal repayment amount and the interest payments you make, combined, can you give you access to tax deductions of up to Rs. 3, 50,000 per annum under section 80C and 24 of the Indian Income Tax Act respectively. Approach any lender or financial expert and they’ll tell you the break-up of these deductions and how you can use this benefit to your advantage.

So if you’ve sidelined the idea of a home loan, make sure you’ve factored in the above points before making a concrete decision against opting for one.

We hope this article has been helpful and wish you all the best!

Want to know your monthly installment? Check the details on home loan EMI Calculators.

With leading banks and private finance companies reducing the interest rates home loans are quite affordable for most individuals who plan to buy a house. They are available with lower interest rates that range between 8.50 to 9.50% with a nominal processing fee of around 1-2% on your principal amount. Therefore, more and more Indians are eye-upon the exciting deals and purchasing or constructing their own abode.

Home loans are by any chance better option compared to traditional finances and personal loans. They offer flexibility in interest rates, tenure, repayment modes. However, since this loan has a huge amount often it becomes tedious to calculate the eligible amount, what would be your EMI, the processing fee, etc. The manual calculation seems to be an exhaustive job. To ease the process and understand loans in a simpler way most companies and banks have introduced home loan EMI calculators on their website that will give an exact overview of how your loan will look like.

Home loan EMI calculator enables you to understand the monthly amount you have to pay to the lending institute on a specific date of every month. EMI stands for an equated monthly installment that you have to pay every month to the lenders. When you visit the calculator page of any website you are rest assured that your couple of question would be addressed quite easily such as: What would be your monthly EMI for your housing loan, how much an individual can afford to borrow as per his or her risk appetite, how much they are eligible for, what is the maximum repayment tenure, what would be the interest rate and processing fee.

Home loan EMI calculators are available on the company's website and you can avail the service for free. You can visit the page and simply enter the amount you wish to avail towards the home loan, the interest rates you can afford to pay and tenure for you which you will need to make repayments. You will get a complete table array that will display your exact principal, interest rate applied and your monthly installment payment. You can set the start date of your monthly payment schedule.

Home loan EMI calculator gives you an insight into the future where you can afford to make complete EMI payments of the loan or not. It gives you can estimate value you have to save every month. It helps you stay prepared for future payments. Earlier you had to sit with financial experts and make bills of income expenditure and then calculate emi which would have a chance of manual errors. One slight mistake would barge the whole EMI calculation. Besides, the process was very much tedious and time-consuming.

But Home loan EMI Calculator is helping to ease the pain and confusions. All you have to do is insert the values correctly and save a lot of time. They give you complete insight into the EMIs you have to pay and you can plan your month finances accordingly. So, no more confusion and tension of EMI just visit calculator page and get easy options for home loan installment calculations, now!

Calculate your monthly installments with ease.

Many people avail home loans to complete the dream of owning a beautiful abode that will create moments and cherish memories for the lifetime. It’s a place where family members share a unique lifetime bond. Every house has innumerable stories and sentiment value being attached to it. It’s most often that people have a low salary, other financial responsibilities, and existing debt due to which it become difficult to take a home while dealing with cash. Also, buying a home means you need lot money which no one has in full. Therefore, most private finance companies and banks offer home loans that come at attractively lower interest rates, low processing fees, flexible ways of repayments and a fair amount of time to repay the debt.

Taking a home loan means understanding lot of terms and conditions, jargons, and calculations associated with it. Sitting down with pen and paper and working on tedious calculation will only add to their worries. To ease out the mental worry many online websites offer home loan EMI calculator which are quite user-friendly and easy-to-use tools.

These EMI calculators are very easy to understand and give complete transparency on loan details. Customers can use these flexible online home loan emi calculators to arrive at the amount that you’re comfortable with. The calculator will help you plan your finances accordingly and save for the loan repayment amount as per your requirements.

Experts say before availing your loan you should use these calculators that will guide you through the loan structure, interest rates applicable, processing fee, pre and post payment charges, loan repayment ways, etc. You can use these calculators to easily judge how affordable a particular loan can be on your wallet.

Some features of using EMI calculator before availing home loan:

• It helps you get a quick view on the overall finances for your home loan. Potential customers can easily calculate their monthly installments with these calculators
• Save your valuable time, energy and efforts from tedious calculations, visiting branches or financial experts, discussing options and then arriving to any consensus.
• These EMI calculators provide you a real-time data and the projected scenario of your home loan would look like in terms of finances and repayments. It will help you stay prepared and have a quick visual on the savings that you should set aside for your monthly installments.
•  Calculators require you to enter your monthly salary, additional income source, preferred interest rates, a type such as fixed or floating, tenure and required money. Once you key in these details the emi calculator will give you the maximum loan amount you get qualified for and the monthly mortgage payments you can make.
• These calculators can help you make big calculations look with ease. It has a very creative and simple interface which makes the calculations look much more easy and fun.

Taking a housing loan will reduce the stress but find the right one at affordable interest rates and low processing fee is a difficult task. Manual calculation only adds to your worries as they are not guaranteed solutions and could lead to mistakes. Even a 0.25 to 0.50% makes a huge difference in the long run. Therefore, use this emi calculator and make a defined approach for your housing finance. Visit online websites and check your interest rates, eligibility, repayments strategies, processing fees, now!