Benefits of Home Loans for Government Employees

 

Government employees are the most eligible candidates for home loans. The government sector is the most stable and secure in the country. Government employees always get their salary on time and have a fixed income which makes them the best eligible borrower for a home loan. They have a lot of options when it comes to home loans. They may get a fixed rate of interest on a home loan for a longer term.

Benefits of home loans for government employees:

Best-in-market ROI: You can reduce your interest costs by obtaining a loan with a low home loan interest rate. You can save much more money if you work for the government. Why? Because lenders give you the preference when offering them lower interest rates. That's not all, though. If you work for the government as a woman, you can save even more because the interest rates on your housing loans will be 0.05% lower than those given to your male co-workers.

 

Easily manageable loan repayments: Given the length of a property loan, paying the EMI each month may place an unnecessary strain on your resources. However, you can receive unique benefits for paying your home loan EMIs if you work for the government. A new policy allows you to repay your house debt at a low EMI that is restricted to 50% of your monthly salary until you are 75 years old. Even if you receive a government pension or are not directly employed by a government agency, you can still gain from this program. 

 

No transaction fees: The normal range of processing costs for mortgage loans is 0.5 to 1% of the loan amount. These are huge sums of money, especially given the size of housing loans. However, there are no processing fees for these loans if you work for the government. As a result, you can obtain a loan without having to use up all your savings upfront. Some lenders may assess a CIBIL charge fee or a specific service fee. 

Advance corpus: Looking for a housing loan for government employees to build your own house? To help with the costs of construction, you can now apply for a House Building Advance (HBA) grant from the government. That is correct! Along with the housing loan amount, the government now permits you to obtain loans of up to Rs. 25 lakhs for home construction and up to Rs. 10 lakhs for home enlargement projects. 

Couple’s advantages: If you and your spouse both work for the government, you can each claim benefits for home loans separately. For instance, to build your new home, you and your spouse can each claim the required HBA benefits.

 

Government Workers' Eligibility for Mortgage Loans

The following qualifying requirements must be met for government personnel to apply for housing loans smoothly:

 

• You must be an Indian citizen to be eligible. 

• To qualify, one must have at least three years of work experience. 

• For a housing loan, people between the ages of 23 and 70 are qualified. 

• The candidate must have a CIBIL Score of 650 or higher.

 

As a government worker, obtaining a housing loan has many advantages, but if you want to make the most of your loan, you must find a reliable lender. To receive the best interest rates on home loans and enjoy speedy processing and disbursal periods, turn to Shubham Housing Finance.

Home Loans for Women: All You Need to Know

 Women today are becoming more independent and do not need financial support from their fathers or spouses. In recent times home loan for women have started taking more home loans in their names since the interest rates provided to a woman-held household is lesser than that of a man. Lower interest rates have also encouraged a lot of women today to invest in their property and simultaneously, government schemes and other policies have also led women to step up in the market. Here’s how women today can avail of a simple and easy home loan and some benefits that they get from it:

1. Women pay less interest rate: Today, lenders prefer women to be reliable loan borrowers which is why they prefer providing a lesser interest rate to women. If the market rate is fixed to 6-7% then a woman will pay a 0.5-1% lesser interest rate. It also impacts their EMI and frees their mind of the burden of paying more.

2. Women can get a higher amount of loan: Several lenders prefer providing women with property loans from 30 lakh up to 5 crores. All they require from women is to be between 20-60 years of age and have a working experience of at least 3 years.

3. Women can use PMAY: Women in India have started to apply for home loans under Pradhan Mantri Awas Yojna and recently, a shift of about 6% has been noticed for the same. Under PMAY, women get an interest subsidy of up to Rs 2.67 Lakh.

4. Women Pay lower Stamp Duty: When a woman registers a house in her name, she is then liable to pay 1%-2% lower stamp duty than men. It may sound that 1%-2% is a nominal amount but when compared to the whole amount of the property, it helps women save a lot in their pockets. Women can also save on tax deductions and the amount they can save may vary between Rs 1.5-2 lakhs on the principal amount and interest repayment.

5. Women get longer tenor repayment options: When a woman buys a property, she is liable to extend her repayment tenor up to 30 years. This way they can pay lower EMIs and reduce financial pressure.

Eligibility criteria for women buyers:

Certain criteria are set for women buyers. Every lender goes through a set of instructions and a woman must have these before investing in any kind of property. The set of criteria includes:

- She should be between 20-60 years of age

- She should be a citizen of India

- Her monthly income should be Rs 15,000 or above

- Her credit score should be 650 or above

- She should have a proven work experience of at least 3 years

Above mentioned criteria is just a set of instructions that every lender goes through. Calculate your home loan eligibility here.

Know that the above-mentioned is a gist and a set of options available to women buyers in India. Amounts may vary. If you involve your wife as a co-borrower or as the main applicant, it may help you in tax deduction and stamp duty deduction while also taking off the burden of EMIs.

Analysis New RBI Guidelines For Home Loan

To help the housing region, the Reserve Bank of India has decided to shield danger weightage on housing credits and make the thing charming for the two borrowers similarly as moneylenders. 

With the introduction of the Real Estate Regulation Act (RERA), the interest is depended upon to go up as buyers would be ensured against misleading producers and experts. We are set to see some other time in the Real Estate region which would be more planned and controlled than beforehand. 

In this article, we will inspect the urgent guidelines that every borrower should know: 

Advance to Value Ratio: 

To make home Loan more sensible for buyers, RBI has raised the credit to regard (LTV) extent. An LTV suggests the degree of the proportion of development you will get against the total assessment of the property you have to buy. To lay it out simply, it is the degree of the property cost, the money related foundation will back while the rest ought to be financed by the buyer. 

Therefore, for each credit given, financial foundations must set aside a decree of the development to take care of dissolvability. The rate was before picked by two factors: the size of the development and the development to-regard (LTV) extent. At this moment, RBI has raised the LTV to 90% for home advances underneath Rs.30 lakhs. This suggests that moneylenders may back over 90% of your home valuation. On the other hand, credits over Rs 75 lakh have an LTV extent of over 75%. In this manner, more the assessment of property and credit aggregate, lesser is the Loan to Value rate. 

RBI further communicates that the stamp commitment, enrollment costs and other documentation charges should not be joined while registering LTV. This cuts down the portion of 10% that ought to be paid candid by the borrower. 

Prepayment Charges 

Credits are exorbitant because they have an interest factor, which is the entirety charged by the financial foundation for extending the development. The outright interest entirety is extremely liberal as the development has a residency of 25 years. 

Prepayment suggests paying the credit whole before it is normal. It will, in general, be inadequate or full dependent upon how much the borrower can pay. The delayed consequence of prepayment is that the head on which interest is resolved gets diminished essentially, in this way provoking store assets on interest cost. 

The RBI has directed zero prepayment charges over all banks and NBFCs if there should be an event of drifting income home advances. To help borrowers, Reserve Bank Of India has cleared out the prepayment charges to deal with the credit if there should be an event of an extension in the compensation. This will allow the borrowers to lessen their EMI and advance residency, which is profitable. Borrowers have welcomed this standard as it enables borrowers with drifting financing cost advances to make sure about themselves by making a prepayment. 

Balance Transfer and Foreclosure 

Thinking about these principles, RBI also has set measures for home credit takeovers, so you renegotiate the home development at low-advance charges and a residency that suits you. RBI has furthermore deferred dispossession charges, further adding the central focuses that you can cause. 

You would now have the option to profit balance move wherein a borrower closes old development with problematic terms and conditions and changes to another credit on the unpaid part. 

Home Loan Insurance 

Home development insurance is a crucial thing that ensures that the credit payer doesn't get into the financial falter as a result of death or deficiency of home development payer. All things considered, home advances are long and can keep going up to 25 years. During this period, an uncertain situation happens which debilitates the borrower to pay the EMIs and thusly making it hard to meet the portions any more. This is where home acknowledge insurance goes about as the legend. 

The RBI rules for home development insurance similarly indicate that buying assurance from their banks isn't vital for home credit borrowers. No guidelines of RBI communicates that getting back credit insurance is required. Every so often selling a specific home credit security is just a technique for making ground-breaking commissions. So the borrower must be mindful and make a decision. 

In the current testing times, home buyers have remained fiscally engaged. Consequently, this presentation will help homebuyers with choosing a home development without any worries. 

Thusly, every borrower should think about these huge guidelines from the RBI that manages home advances. In case you are looking for another home development or a harmony move to change to a predominant home credit, by then reaches us at 1800 258 2225. You can, in like manner, use the Shubham Housing Finance capability calculator to assess your capability before applying for credit.

RBI Guidelines for Home Loans 2020

To help the lodging area, the Reserve Bank of India has chosen to defend hazard weightage on lodging credits and make the item alluring for the two borrowers just as moneylenders. 

With the presentation of the Real Estate Regulation Act (RERA), the interest is relied upon to go up as purchasers would be protected against deceitful manufacturers and specialists. We are set to see another time in the Real Estate area which would be more coordinated and controlled than previously. 

In this article, we will examine the pivotal rules that each borrower should know: 

Advance to Value Ratio: 

To make home Loans more reasonable for purchasers, RBI has raised the credit to esteem (LTV) proportion. An LTV alludes to the level of the measure of an advance you will get against the complete estimation of the property you need to purchase. To put it plainly, it is the level of the property cost, the monetary establishment will back while the rest should be financed by the purchaser. 

Subsequently, for each credit given, monetary establishments must put aside a level of the advance to look after dissolvability. The rate was before chosen by two factors: the size of the advance and the advance to-esteem (LTV) proportion. Right now, RBI has raised the LTV to 90% for home advances underneath Rs.30 lakhs. This implies that moneylenders may finance over 90% of your home valuation. Then again, credits over Rs 75 lakh have an LTV proportion of over 75%. Thusly, more the estimation of property and credit sum, lesser is the Loan to Value rate. 

RBI further expresses that the stamp obligation, enlistment expenses and other documentation charges ought not to be incorporated while computing LTV. This brings down the instalment of 10% that should be paid forthright by the borrower. 

Prepayment Charges 

Credits are costly on the grounds that they have an interest factor, which is the sum charged by the monetary establishment for expanding the advance. The absolute interest sum is very generous as the advance has a residency of 25 years. 

Prepayment implies paying the credit sum before it is expected. It tends to be incomplete or full contingent upon how much the borrower can pay. The aftereffect of prepayment is that the head on which interest is determined gets decreased fundamentally, subsequently prompting reserve funds on interest cost. 

The RBI has commanded zero prepayment charges over all banks and NBFCs if there should be an occurrence of coasting revenue home advances. To support borrowers, Reserve Bank Of India has wiped out the prepayment charges to take care of the credit if there should be an occurrence of an expansion in the pay. This will permit the borrowers to diminish their EMI and advance residency, which is gainful. Borrowers have invited this rule as it empowers borrowers with coasting financing cost advances to secure themselves by making a prepayment. 

Equilibrium Transfer and Foreclosure 

Considering these rules, RBI has additionally set measures for home credit takeovers, so you renegotiate the home advance at low-loan fees and a residency that suits you. RBI has additionally postponed dispossession charges, further adding the focal points that you can cause. 

You would now be able to benefit balance move wherein a borrower closes old advance with troublesome terms and conditions and changes to another credit on the unpaid part. 

Home Loan Insurance 

Home advance protection is a fundamental item that guarantees that the credit payer doesn't get into the monetary stagger because of death or inadequacy of home advance payer. By and large, home advances are long and can last as long as 25 years. During this period, an unsure circumstance happens which weakens the borrower to pay the EMIs and subsequently making it difficult to meet the instalments any longer. This is the place where home credit protection acts as the hero. 

The RBI rules for home advance protection likewise specify that purchasing protection from their banks isn't necessary for home credit borrowers. No rules of RBI expresses that bringing home credit protection is required. Now and then selling a particular home credit protection is only a method for making powerful commissions. So the borrower must be cognizant and settle on a choice. 

In the current testing times, home purchasers have remained monetarily focused. Subsequently, this declaration will assist homebuyers with settling on a home advance with no concerns. 

In this way, every borrower ought to know about these significant rules from the RBI that administers home advances. On the off chance that you are searching for another home advance or an equilibrium move to change to a superior home credit, at that point does contact us at 1800 258 2225. You can likewise utilize the Shubham Housing Finance qualification adding machine to evaluate your qualification prior to applying for credit.

Apply for a Home Loan During The Pandemic

As everyone got affected by the nationwide lockdown wherein and a lot of people, faced a financial crisis. Many businesses have badly impacted during the Corona Pandemic, and people either lost their job or had to face a pay cut. To ease the financial strain, many banks and housing finance companies such as Aadhaar housing Finance, Shubham Housing Finance are offering loans to help people in financial stress.

Also, the Covid-19 crisis has created a rift between landlords and tenants where, unfortunately, many tenants were asked to vacate their house. This has prompted people to consider buying their own home and look for easy and quick home loan options.

But the question is – Is this the right time to apply for a home loan?

It is a good time for those who are planning to own a house as the government has introduced several benefits to boost affordable housing. 

Here let us look at the reasons why this is the ideal time to avail a home loan: 

#To boost the demand for housing amidst the pandemic, the Secretary for Housing and Urban Affairs, has given stamp duty concession. The concession in stamp duty will benefit the homebuyers to buy a home of their own. Also, it would be applicable to the registration of documents by 3 per cent from 1st September to 31st December 2020.

#The government has extended the Credit-Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) under the Pradhan Mantri Awas Yojna (PMAY) until March 2021. Under the scheme, middle-income homebuyers with an annual income of Rs 6-18 lakhs can avail the benefit of subsidized interest on their home loans.

With an online facility, you can now easily avail a home loan without a guarantor. At Shubham Housing Finance, the process of loan application is quite simple; you can enjoy a higher loan amount with Shubham Housing Finance and repay it over the flexible tenure. 

To calculate your monthly instalments, you can take the help of an EMI calculator. But before applying for a loan, you need to consult with a trustworthy financial institution like Shubham Housing Finance to meet all your financial needs.

With the above-mentioned reasons, it surely seems to be an ideal time to buy a new property. If you need any assistance in applying for a home loan, or if you have doubts, you can reach out to us, or you can write your queries in the comment section below. 

Wondering Which Home Loan is The Best? Read On To Know The Best Home Loan.

 

Are you planning for a home loan?

Buying a house is considered as one of the most significant milestones. People generally take a home loan either buying a house or construction of a house or renovation or repairing of an existing house.

We all know that buying a home is not as easy as buying other essentials. In India, there are plenty of financial institutions in the market. Some of the top-rated companies such as Indiabulls Housing Finance, Shubham Housing Finance, IIFL Housing Finance, Bajaj Finserv, HDFC that provides home loans at a competitive interest rate.

But before you choose any of the banks mentioned above or housing finance companies, you should know the different types of home loan available in India.

1. Home Loans: It is one of the most common types of home loans. Using this home loan, you can purchase a plot, flat or any other residential property. This loan allows you to buy a newly constructed property or old property.

Shubham Housing Finance is an industry leader in providing Home Loans to those with informal incomes with customizable EMI options. The primary goal of Shubham is to make it easy and simple for a customer to acquire a home loan. All you have to do is fill the application form, provide the essential documents required to process your home loan.

2. Home Improvement Loans: A home improvement loan is a secured loan taken to undertake any renovations of your self-occupied property such as restructure, renovate, upgrade or rebuild your house. To adding new tiles to the floor or wiring your home, a home renovation loan provides you funds for all your home needs. You can even take this loan to add a new room or to have a modern interior of your home. The loan amount for this loan is generally lower than a home loan.

You can apply for this loan individually or jointly. If your home is jointly owned, then the property owners can apply for Shubham Home improvement Loan. You can also check the EMI that you need to pay using the Shubham Home Loan EMI calculator.

3. Loan Against Property: A Loan Against Property is a convenient way to fund your business or meet your personal needs by using your property as collateral to get a loan. It is a credit availed by keeping your property as a mortgage with the lender. At Shubham Housing Finance, you can get a loan usually with competitive interest rates and customizable EMI options.

Depending upon your need, you can take it from the best housing finance company. But with Shubham Housing Finance, you can be a proud homeowner. Whether you're salaried or self-employed, you can get home loans from Shubham at competitive interest rates.

If you want to more about home loans, you can check https://shubham.co/ for more information.

Six Common Myths About Loan Against Property

A Loan against property lets you leverage the property for your personal use as collateral to borrow money for monetary emergencies.

Shubham Housing Development Finance Company is offering a Loan against Property to manage your high-end expenses with ease. Be it financing your child's education, fund a wedding in the family, or even handling unforeseen medical expenses, this loan enables you to do it all.

Despite its advantages, there are several misconceptions that people have about Loan against Property. 

So, let us take a look at the six myths about loan against property and the truth behind them:

Myth 1: You cannot use the property that you pledge

This is a common misconception that many of us have about loan against property. It is essential to understand that there are no constraints on using the property even after you have pledged the property. Throughout the tenure of your loan, you have the absolute right to use the property you have secured funds against. The property can come under the control of the financial institution's ownership only if you default on your loan. In such a case, the financial institution has the right to sell the property to raise funds from it.

Myth 2: Better to take a loan at a higher interest rate than pledging your home as collateral

One more misconception that most people think is that you should never pledge your home as collateral for a loan. However, the reality is that having your home as collateral carries no risk if you are consistent with your repayment plan. By and large, these loans are secured, and so, they have an affordable rate of interest that you can repay over a lengthy tenor. It offers you high-value funds at comparatively lower interest rates than other loans.

Therefore, as compared to other loans, a Loan against property is a financial tool that supports you in the long run and helps maintain stability.

Myth 3: To qualify for the loan, you need to be in a high-income bracket

It is not a hard and fast rule for you to fall under a high-income bracket to avail the loan. At Shubham Housing finance, we provide you based on your repayment capacity towards the loan you have taken.

Myth 4: You can borrow a loan amounting to the full value of the property

This is one of the biggest myth that people have against loans against property. No financial institution in India provides you loan up to 100% of the property's property's market value.

At Shubham Housing Finance depend on the valuation of mortgaged property we provide you with the loan. Usually, we approve loans up to 70 - 80% of the property's market value. Factors such as location and age of the property, infrastructure, geographical stability, etc. are also considered during the evaluation process. Loan disbursal time may usually range anywhere between one week to three weeks.

Myth 5: You can only get a loan against property a commercial property

This is far from the truth. At Shubham Housing finance, you can take a loan by pledging a residential property. Additionally, you can use the funds to purchase a property as well. Moreover, there are no restrictions on usage; you can use it for financing education or a destination wedding.

To take advantage of these features, you can choose for Shubham Loan against Property for a hassle-free loan application and enjoy flexible tenure and quick approval of your loan.

Myth 6: You need to have a good CIBIL/Bureau Score

Though the CIBIL/ Bureau score has a significant role to play, with Shubham Housing Finance, anyone with a low CIBIL/ Bureau score can apply for a loan against property. Shubham Housing finance provides you with a loan based on the applicant's eligibility criteria and their monthly income.

If you have any doubts or you want to know more about Shubham Loan against property or any other loans, do let us know in the comment section below!. We are always there to help you.

Happy Reading!