Home Loan Eligibility Criteria In India

Purchasing your dream home in today’s times is surely not easy. The ever increasing price of real estate is a matter of worry to everyone who is planning to buy their dream home. If you are too bothered by such high rates, then you need not worry. There is always an option to get a home loan on DDA flats for buying the house of your dreams. However, to get a home loan you need to be eligible first. Here is a brief of home loan eligibility criteria in India to give you a fair idea. However, you can also take help of loan calculator on salary basis to get better insights. 

Firstly, to be eligible to get a home loan it is important that you are at least one of the following segments:

Professional

Self employed

Salaried

Hopefully this makes it clear enough that you need to have a regular income source to meet eligibility criteria for a home loan. This is because the bank expects your loan to be repaid on time and a person with regular income is expected to do so with ease. In simpler terms, the risks involved in lending funds to an earning person are much less as to that of someone with unsteady income base.

Let us discuss these categories in details:

Salaried Individual

If you fall under this category, you have to be a permanent employee of a private or public firm. If you are working with a private firm, it is important that the company is a reputed one. You will have to provide proof of income in the form of bank account statements, salary slips etc. if you don’t fall under this category but your spouse does, you can take the loan under his/her name.

Professional

a professional is a person who is a doctor, engineer, architect, accountant, dentist, consultant. If you fall under this category and can show steady income proof, you are eligible to get a home loan.

Self Employed

self-employed is a person running their own business. If you have your own business or have any other source of income you can apply for home loan but it is also vital that you are regularly filling your income tac returns.

Besides the categories, here are some factors that affect your home loan eligibility:

Income

How much you are earning per month decides the amount of loan you are eligible for.

Age

The home loan applicant must be at least 24 years of age at the beginning of loan and not more than 60 years at the end of loan. The age can be extended up to 65 years in case of self-employed people and professionals.

Interest rates

The eligibility for your home loan is often inversely proportional to the interest rate you are paying. If the interest rate is low, your eligibility will be higher.

Loan tenure

The longer is the tenure of your loan, greater will be the amount you are eligible for.

Existing loans

Most Indian banks try to keep the ratio of EMI to income somewhere between 50 to 60 percent. So, in case you have some existing loans going on, the eligibility amount will be reduced in order to maintain the said ratio.

Credit history

Banks will check your credit history from CIBIL score which is considered to be of high value in determining your eligibility. The information can be accessed in the form of credit information reports and to ensure you maintain a good credit history, it is important to pay your credit card bills and EMIs on time.

Source:https://www.wattpad.com/732138518-loan-on-dda-flats-loan-calculator-on-a-salary

Understanding the advantages of loan against property

One of the best things about being born to good parents is the fact that you end up getting a lot as inheritance. But, it is important to remember that just because you were blessed with rich parents does not mean you are going to be rich forever. None of us is immune to tough times like business losses, alcohol or drug addiction, gambling or frauds which may land us in a position of bankruptcy. You may end up losing a good amount of money and have nothing at hand to start your life again.

The good news is that you can reap the benefits of borrowing a good amount of money against your inheritance. Here are top benefits of taking a loan against property.

You get your property back

If you repay the amount well, your property is returned to you. It is obvious that no one wants the inherited property to go out of hands, so it is important that if you have taken a loan against property, you work hard to get it back.

You can use it as you want

One of the best benefits of an inherited property is that you can use it as per your own free will. If you need money on urgent basis, all you have to do is take the formal documents and procure a loan against the same.

It’s a well-known trade

Well, since you are giving your property and getting good amount of cash in exchange for the same. Most companies who are into the business of providing such loans are legal and ethical. There is a formal documentation before such a deal takes place between either of the parties.

It is not uncommon

While it may come as a surprise to you, but a lot of people take loan against property. In fact, many of your close friends might have done it too at some point in their life. People who want to start their own business or need a good amount of money for further studies abroad may resort to such options.

There are lesser risks involved

While nothing in the world is 100% safe, if you take a loan against property and are unable to pay, you end up losing your property. This implies that you do not lose your self-respect nor are you threatened.

It is simple

The procedure to get loan against property has become much less complicated. There is fewer documentation and faster processing of your loan. In fact, many companies are now offering loan against property in Gurgaon and loan against property in west delhi too.

Source:http://www.imfaceplate.com/inrcredit/understanding-the-advantages-of-loan-against-property

How to make sure you get lowest rate of interest for home loans

Buying a home is quite a significant event in a person’s life. Selecting the right home not just needs a lot of planning at your end but also comes with its own kind of responsibilities. Financing a home is one of the most convenient way to fund the money required to own the place. But, before you apply for a home loan, it is important to consider the EMISs you will have to pay and the rate of interest you will be getting the loan at. Banks and other financial institutions today have a myriad of financing options, some even provide loan against property without itr and special rate of interests on loan on mcd houses but it is always better to follow these tips to ensure you get lowest rates on your home loan. 

CIBIL Score

CIBIL is the prime factor when it comes down to determine the home loan eligibility of an applicant. A good CIBIL score increases your chances of getting a loan at attractive interest rate and hence you get a home loan on cheapest EMI. To improve your score, make sure you pay credit card bills on time and do not delay other loan EMIs.

Down Payment

It is suggested that before you purchase a home, you save enough money to make down payment when you are applying for the loan. Paying a higher amount for down payment reduces your burden of long tenure EMIs sine you have already paid a significant amount of payment.

Debt-to-income Ratio:

Another important factor when it comes to applying a home loan is debt to income ratio. It is basically the ratio of income compared to your overall monthly EMI amount. It is suggested to keep your EMI amount less than your monthly income in order to have a convenient loan repayment process.

Stable Job & Source of Income

Banks and lending institutions consider the employment stability of applicant and his/her income to calculate the amount of loan a person is eligible for. A person with regular source of income and a stable job have better chances of getting a home loan at good interest rates. You can check your home loan eligibility online by using loan calculator on websites like INRCredit.com. 

Source: http://www.imfaceplate.com/inrcredit/how-to-make-sure-you-get-lowest-rate-of-interest-for-home-loans

A Guide to Loan against Property

Anyone can get caught amidst financial troubles. Taking a loan has long been a good option to fight cash crunch situations since they are easy to get and come with multiple options. While you can always go for a personal loan, it may be possible that the loan amount you are eligible for is not sufficient for you. In such cases a loan against property can come to your aid. Also known as LAP, loan against properties are considered to be one of the cheapest secured loans in India and also come at cheapest EMIs.

A loan against property is basically a loan wherein you keep your commercial or residential property as a collateral to the financial institution and you borrow money against the same.

Here are some benefits of taking a loan against property:

It Can Be Availed Easily

Getting a loan against property is not difficult and most of the top lending institutions offer this facility. All you need is the papers of your property and the process is seamless and hassle free. The loan amount for loan against residential property is disbursed shortly.

Low Interest Rates

In terms of interest rates too, a loan against Gurgaon property is a good idea. The interest rate of these loans are quite less than the ones of personal loans, a clear reason why you should consider these over a personal loan. 

It Can Be Taken For Multiple Purposes

The amount received for loan against property can be used against a myriad of financial things like business expansion, home renovation, debts, higher education etc. Once you have received your money, it is your wish how you use it, no questions asked.

Long Tenor Period

The tenure of a loan against property generally varies between 10 to 15 years. Since the amount you can avail through a loan against commercial property is high, the banks offer a longer tenure to repay. This helps the borrower in paying off the loan easily without feeling burdened. Due to lesser interest rates and longer tenure, the EMI amount is also low.

Continued Ownership

Taking a loan against property does not mean you have to give away the ownership too. You need not pay back the entire loan amount before you get the ownership. If you are not able to repay the loans, you can choose to sell the property at any point and settle the loan with money received.

Flexibility in the Loan Amount

In case of a loan against property or loan against rented property, you have the advantage of getting a flexible loan amount. More often than not, you can get a loan of about 40 – 70% of market value of your property. Hence, it’s up to you and your requirements of how much you want to avail. It is still suggested that you choose to borrow wisely.

Source:https://www.freeprnow.com/pr/a-guide-to-loan-against-property

Types of Home Loans

Loan is basically defined as any amount of cash that one borrows and has to pay back in time, unfortunately with some added rate of interest. The terms may however vary, depending on where you get your loan from and how much loan amount you have taken. If you are taking loan from a bank, you may have to pay an extremely high rate of interest. There are many other variations by how a lender structures the loan. 

Line of credit loans: this is one of the handiest loan for a small business. It is a short term loan which extends the cash for your business. These are intended for purchase of inventory as well as to cover up for the operating costs. This loan however is not intended for purchase of real estate or any large equipment. 

Instalment loans: this loan covers both the principal amount as well as interest. Once you sign your contract, you will receive complete amount and the interest to be paid will be calculated from the date to final day of the loan. There will be no penalty charged if you repay an instalment before the final date.

Balloon loans: these loans are often taken in situations where in a business has to wait for a specific date before the receive the payment from a client for product and services rendered.

Interim loans: these loans are often used by contractors and builders to build new facilities. The property is kept as a mortgage to pay off the interim loan when the construction of building is finished.

There are many organisations that offer loan, some of which are not banks but finance houses and money trusts. Many borrowers in the past did not understand what they were signing up for when taking these home loans and hence found themselves in deep trouble later. To avoid this, one has to first understand what type of loan they are going for. Here is some different type of home loans prevailing in the market:

Loan with fixed rate: this one is considered to be the safest type of home loan since this lets the borrower that a loan at pre-decided rate of interest for the entire tenure. This means even if the tenure is 30 years, the EMI amount will remain the same till your last repayment. This is by far the best possible home loan for salaried persons.

Adjustable-Rate Mortgage Loans – These loans have one thing in common and that is that the payment will increase over time. It offers a very low rate to lure the customer by offering home loan on cheapest EMI for first few years but with larger payments due as the interest rate changes, an adjustable home loan rate can be hard to repay, especially if the payments go double within few years itself.

When buying a home loan, most home purchasers choose to finance a portion of the total amount through home loans. An online home loan eligibility check can give you answers to your questions about loan variables and their changes. This helps a person determine how much he can payback on monthly basis.

Source: https://www.freeprnow.com/pr/types-of-home-loanswhich-one-is-right-for-you

Use a Loan Calculator To Help Choose The Best Home Loan

When you decide to purchase a home and need a home loan to help you finance your dream, the first thing that you must do is decide on the kind of home loan that will be most suitable for your needs. In order to do so, a home loan calculator is an indispensable tool at your hand. There are a myriad of home loans where in each one of it comes at its own interest rate and payment terms. A home loan calculator can hence help you choose the right kind of home loan for their needs.

The loan calculator is now easily available at all websites of lending institutions which deal in home loans etc. you can use this free calculator and enter the required loan amount and tenure to get a fair picture of EMIs you will have to pay.

It is important to remember that the more calculations that your loan calculator requires, more accurate will the information be. So, make sure that the figures you provide are as accurate as they can be so you can make the right comparison. A loan calculator can also be used to calculate costs, fees and EMIs. This can help you determine your liability over the years and rethink if you are ready to make such kind of commitment.

Just like you can compare two different loans, you can also compare two different lenders and decide to go with the one that offers better terms. A borrower can secure better lending rates by using a comparison calculator, there are certainly many other ways to secure a good home loan too.

Home loan calculators are also helpful when you need to get loan against property. Maximum loan eligibility in lap is a confusing calculation for many of us. This type of calculator simplifies the job and helps you with exact figures. If you are still unsure about the loan you need to go for and cannot decide the right lender, you can get in touch with some home loan consultant in Delhi-ncr who can help you make the right move. These consultants and calculators are also ideal and helpful if you need a DDA home loan in Delhi-ncr.

Source: https://www.freeprnow.com/pr/use-a-loan-calculator-to-help-choose-the-best-home-loan

Two Ways to Get the Lowest Home Loan Rates

It is true what they say, there is no other place like home. the warmth of family and peace that you find in your home cannot be found elsewhere.

With soaring prices of real estate however leaves people with having second thought about acquiring a home. the rates of real estate have gone higher than ever and making ends meet is not easy, especially if you are a single earning member of the family.

But, fret not. There are a lot of affordable home loans that can be taken only by tracking the right places. Here are two ways which can help you fetch the best deals when it comes to taking a home loan.

Go for Private Sources

Home loan lenders and independent financial institutions are one of the most active sellers of home loans. They help you access various financing programs which can help you buy the home of your dreams. They help you get the loans through agents and brokers for a hands on loan processing.

When looking for the right lender, it is important that you check for their rates and find out if they are within your repayment capacity. It is also important to check if the rate is on fixed rate basis or flexible. Foreclosure of the property is where most people suffer due to flexible rate of interest. People find it difficult to keep on paying the increasing rate of interest so it makes sense to check the terms of loan you are trying to avail.

Go for Government-Assisted Home Loans

The other way to approach and get a home loan is by government recognised banks and financing institutions. Government recognised institutions are reliable and comparatively cheaper however getting a loan from them does not come easy as they follow strict guidelines and paper work. You need to have a high credit qualification and complete paperwork before you avail the loan facility. The cost, however, of these loans is comparatively less and they mostly offer fixed rate of interest.

The lowest price loans are waiting for you to be availed, it is your decision whether you opt for a government or a private financing company. To find out if if you are eligible for a home loan you can now check home loan eligibility online at the website of any lending institution.

Source: https://www.freeprnow.com/pr/two-ways-to-get-the-lowest-home-loan-rates