9 Questions to ask before you opt for a loan against property

Loan against property, also called mortgage loan, that allows you to keep your residential, commercial, and industrial property as collateral to get a loan amount.

To avail a loan these days is quite straightforward than before as many financial institutions provide a variety of services and benefits to the customers.

While some prefer an easy and straightforward process, whereas others focused more on the interest rate, repayment process and charges, thus it is essential to ask few questions to your lender before applying and finalizing a loan against property.

Question 1: How can I get a loan against property?

The process of getting a loan against property is easy than other investments. Housing finance companies like Shubham Housing Finance, Adhaar housing finance will evaluate your property first. And as per the valuation of your property and eligibility, your mortgage loan will be decided.

Question 2: What documents are required for a loan against property?

One should check that all the documents are in order before he/she applies for Loan against Property. 

The documents differ for a salaried and self-employed person:

A Salaried applicant needs to submit:

1. Application form with photograph

2. Identity and Address Proof

3. Latest Salary Slips

4. Form 16

6. Processing fee cheque

A Self-Employed applicant needs to submit: 

1. Application form with photograph

2. Identity and Address Proof

3. Address proof

4. Income proof documents, if available.

5. Bank passbook or Bank Statements.

6. Copies of the Property papers

However, Shubham Housing Finance Company requires minimum documentation and provide quick and hassle-free loans

Question 3: How can I repay my loan?

You can repay your Loan against Property through Equated Monthly Instalments (EMIs). At Shubham Housing Finance Company, you can get customizable EMI options as they help their customers to pay off other loans to rid them of debts.

Question 4: Can I take a loan against a house I have given on rent?

Yes. All that matters is that you have a proper title deed and other ownership documents. It doesn’t matter whether you live in the house or give it on rent.

Question 5: Does a bank/ NBFCs/ HFCs check my Credit Score before giving me a Loan against Property?

Yes. Even though this a secured type of loan, still banks and housing finance companies check the credit score of the applicant for his repayment history in case of Loan against Property.

Question 6: Which bank is best for a mortgage loan?

All Banks, NBFCs, and HFCs offer mortgage loans at attractive interest rates. As a customer, it might get confusing to choose the ideal lender for you. So to clear that confusion, you can visit the website and compare loan deals offered by financial institutions.

Question 7: What is the Eligibility Criteria for the Loan?

Usually, most of the banks and NBFCs need the borrower to be between 21 and 60 years of age, with a good credit history. The lender would also require you to have a steady stream of income, along with stable employment. In some cases, however, the lender may have some additional criteria for eligibility as well. To see whether or not you meet those criteria, before filing your loan application.

Question 8: Can a Commercial Property act as collateral for Loan against Property?

Yes. You can take a Loan against Property by providing a Residential or Commercial Property as collateral. You can also take a loan against a plot of land.

Question 9: How much time does it take for the disbursal of the loan amount?

This is yet another vital question that you must ask your lender. It varies from one lender to another. However, there are few financial companies like Baja Finserv, Shubham housing often takes less than a week, but it is advisable to get this information upfront.

We hope that you are now aware of some of the crucial questions that you must have the answers to, before applying for a Loan Against Property. If you have any other queries in your mind, feel free to ask in the comment box below.

Tips to Manage Finances for Your Home Renovation?

Whether you are planning to renovate a house or preparing to remodel your current abode aren't always pre-planned expenses. Sometimes a leaking roof or cracked tiles may require you to spend significantly at short notice.

Thus you need to figure out how you are going to finance such renovation. Once you have a clear idea of how much money you have to spend, you should be able to make the right decisions.

Thus NBFCs and Housing Finance Companies such as Shubham Housing finance offer custom loans mainly aimed towards home renovation expenses in the form of a top-up loan.

Here's a quick guide on managing and planning your finances well for home renovation expenses:

1. Prioritize Remodeling Needs

The easiest way to stay on budget is to know what you want. Create a list of everything you would like the project to include and then separate items into wants and needs.

2. Create a Detailed Plan With Cost Estimates

As the old saying goes, "work smart, not hard." The same logic can be applied to your home improvements.

Creating a detailed plan that includes expected costs will help you build a remodelling budget. The best way to manage your finance is to choose a customized loan for your renovation plan.

You can also use an EMI calculator to get a sense of the loan amount that you can comfortably repay and also check your eligibility before applying. Many lenders such as Shubham Housing Finance, Bajaj Finserv offer home renovation loans that are tailored for home-related expenses.

3. Set a Renovation Budget Wisely

Do you have enough cash to cover the renovation?

First, take a look at your current finances. This is one of the most important parts when it comes to setting up your home renovation budget.

We recommend you to opt for either using a home renovation loan or a top-up loan with equal ease. You can also take a Home loan Balance Transfer with Shubham Housing and enjoy the facility.

4. Cut costs where you can

Of course, cutting unnecessary expenses where you can is never a bad idea – especially if you're on a tight budget.

5. Do a Research

Make sure to do your research beforehand to avoid mistakes and end up spending more for recovery.

6. Opt for a top-up loan:

Making use of a top-up loan on your existing home loan, you can easily finance your next home renovation project without compromising on your plans or taking on any financial stress.

Are you ready to get started? You can apply online for a top-up loan or home renovation loan with Shubham housing Finance as there are no fiddly paperwork and early repayment fees.

Also, you should make sure that you have the financial means to repay the loan, especially if you're already making payments towards a home loan.

Top up loan vs Home Improvement Loan - which one is best

Just like all other things in life, your home also requires regular checkups, upgrades, and care. Every homeowner wish to make some improvements to their home, such as building a new room, renovating a room, or upgrade the interior of the house.

The interior of your house reflects your personality, and to beautify your home, you need to work on our financial gains because such endeavours come with a price tag. Thus a Home improvement Loan comes to reduce your financial burden.

With time, many Housing Finance companies such as Shubham Housing Finance, Adhaar Housing Finance, Art Housing finance, and NBFCs have come up with consumer-friendly loan options. 

These loans have a low-interest rate when compared to other loans:-

Top-Up Loan

A top-up loan is a loan given when there is an immediate financial need. It is recommended that if you already have an existing loan, then you can opt for a top-up loan. One can avail of this facility from housing finance sectors or NBFCs.

But before opting for either one, it is better to understand the difference between the two, and how can these help you? Let us find out.

Top-up Loan vs. Home Improvement Loan

1. Purpose of the borrowed amount: A home improvement loan is a good option of borrowing money for renovation, up-gradation, external and internal repairing, waterproofing, etc.Whereas, a top-up loan can fulfil a host of requirements such as marriage expenses, business expansion, and repay any other debt.

2. Lesser interest rate: One of the most significant advantages of securing a home improvement loan is a lower and fixed rate of interest. A top-up loan compared to a personal loan is comparatively lower for top-up loans.

3. Quick approval: Since you already have an existing loan from the same bank, you can expect a faster approval compared to Home Improvement Loan.

4. Tax Benefit: You can claim a tax deduction on a home improvement loan as well as a top-up loan. All you need to avail the deduction under section 24.

5. Loan tenure: The tenure of the top-up loan cannot exceed the tenure of the primary loan. Thus, you have the option of choosing a tenure equivalent to your existing one or a shorter one. But for a home improvement loan, you can have a longer tenure.

6. No collateral needed: Since a top-up loan and a home improvement loan is an unsecured form of a loan, you do not require to pledge any security or collateral against the loan.

7. Lesser paperwork: There are few housing finance companies such as Shubham Housing, Adhaar, Art housing requires less and minimal paperwork compared to other financial sectors. For a top-up loan, you need comparatively few documents as you are already an existing customer.

Almost, everything is similar while comparing a home improvement loan and a top-up loan. But if you foresee any future financial necessity other than home renovation, a home improvement loan is a better option to opt for. It is recommended that before you choose one, give yourself the ratings based on the interest rate.

Also, if you are looking for a hassle-free and quick approval of loans, we are here to help you. Plan your loan well to invest more and earn more.

List Of Housing Finance Companies From Which You Can Easily Avail PMAY Benefits

The Pradhan Mantri Awas Yojana (PMAY) scheme is a government of India's flagship scheme that was launched in June 2015 to provide affordable housing to individuals falling under LIG and MIG.

 

With a mission of "Housing for All" in urban areas by the year 2022, the government provides a credit-linked subsidy to first-time homeowners on interest rates on their home loans. They are contributing about 1 lakh to 2.6 lakh for each home falling under the different vertical scheme.

 

Additionally, the government announced that the GST rate applicable on home loans would be reduced from 12% to 8% for those who apply for the loan under the Pradhan Mantri Awas Yojana schemes.

 

Take a quick look at the housing finance companies from which you can easily avail the PMAY benefits:

 

1. Shubham Housing finance:

The Pradhan Mantri Awas Yojana scheme caters mainly to the housing requirements of the urban poor. Shubham believes in the mission of Housing for All. A key growth driver of this initiative is Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme (PMAY- CLSS). More than 10.5 lakh families have benefitted from this scheme.

 

Once you know you are eligible, you can avail a home loan from Shubham Housing Finance to finance the purchase of your first house and reduce your EMI burden with the help of PMAY.

 

2. Indiabulls Housing Finance:

Lakhs of homes have been constructed in 500 Indian cities and towns, since the launch of PMAY scheme

 

Indiabulls provides the affordable housing benefits of Pradhan Mantri Awas Yojana scheme through a credit-linked subsidy scheme known as CLSS. The maximum subsidy amount is calculated basis the minimum loan amount of 6 Rs. 6 lakhs for EWG/LIG customers, Rs 9 lakhs for MIG I & Rs 12 lakhs for MIG II customers with a loan tenure of 20 years.

 

You can also apply for loans at Indiabulls Housing Finance and enjoy the benefits of PMAY subsidy.

 

3. Aadhar Housing Finance

 

Adhaar empowers all the first time home buyers with a subsidy of up to 2.67 lakhs to own a house and build a house for their family. The beneficiary family should not own a pucca house in the name of any member of his/her family. Aadhar Housing finance allows you to own dream home and avail the PMAY interest subsidy.

 

4. Bajaj Finserv

PMAY has played a significant role in providing affordable housing. The purpose of this scheme is to offer interest subsidy for home purchases and by constructing affordable housing too.

 

Once you are eligible, you can then apply for a Home Loan under PMAY with lenders like Bajaj Finserv. This will allow you to avail of the benefits of the PMAY scheme along with the flexible terms of repayment, thereby adding affordability to your home purchase.

 

5. Art Housing Finance

 

For availing the subsidy under the Pradhan Mantri Awas Yojana, you have to apply for the home loans from NBFC or Housing Finance companies whichever you find best as per your requirement. After the approval of the Central Nodal Agency, the subsidy amount will be transferred directly to your bank account.

 

These are some of the best Housing Finance companies from which you avail the benefits of the PMAY Home Loan scheme. Do let us know in the comment section, if you want us to add anything more or if you have any queries.