Which is the Best Option for Taking Your Home Loan: HFC or Bank?

The impact of the Covid-19 on the Indian banking and finance sector has seen an unprecedented change to the extent that it has brought construction activities to a halt and significantly eroded the market of its potential buyer-base. Due to macroeconomic instability and the possibility of income deflation, many people are reconsidering their home-buying decisions. Yet there's no lack of lenders to those who have chosen to apply for a home loan.

If you have a good CIBIL score and a reasonable steady income stream, then you can get your loan from Shubham Housing Development & Finance Co. They offer you a home loan at the best possible terms. You will have to make your decision based on both your current partnership and the financial consequences of the loan.

But most of the time we have a million-dollar question; how do you make that choice?

Clearly, in both of these home finance types, there are some advantages and demerits. How to determine if a private bank, HFC, or NBFC can take a home loan? Here's a short guide on how to get your home loan selected.

Is the convenience and service quality of a high standard?

This is an intangible factor, but when you see it, you can still get good service. Home loans typically have an average lifetime of 15-25 years, so it's a very long-term relationship. Therefore the nature of the partnership matters a great deal. However, Shubham Housing Development Finance is going out of the way to give customers tools and solutions for digital empowerment.

It has been known to offer a better quality of service compared to banks. Also, the services provided by Shubham Housing Finance are more customized to the tastes and preferences of the customers.

Bank eligibility norms tend to be more strict.

You will see that normally banks take longer to accept loans than HFCs do. In addition to finding the lowest delivery rates, you also need to look for delivery speed.

Most HFCs are not insisting on a personal guarantee, but are Ok with property mortgage as security. In the case of banks, the transaction time is longer, and it often takes more time to disburse. You also have to make that a consideration, particularly if you want to close your property purchase quickly.

Emphasize the effective cost of the home loan

Of course, the first factor is the interest rate paid. However, you need to focus on cost-efficiency and not just the interest rate paid. Here you need to look not only at the cost of financing but also at the hidden costs such as pre-payment charges, transaction fees, etc.

Unlike banks, HFCs are not subjected to the same level of regulation and hence may not pass on rate cuts easily. Since their cost of funds is slightly higher than banks, this is because HFCs link their rates to a prime lending rate and not to an external benchmark as banks are required to do. Therefore the rates charged by NBFCs may be stiffer.

Thus, in case of a home loan, the most important decision isn't whether you take it from a bank or an NBFC. The decision is based on whether you can hold the home equity higher than your outstanding loan principal. That is when your home really brings value to you as an investment, apart from being an emotional anchor for your family.

Important Points While Obtaining Loan Against Property without income proof

Majority of the people who don't have proof of income or ITR worry about how they can get a property loan.

Well, you can apply for mortgage loans from home without displaying your tax returns.

But the procedure is quite complicated, so you've got to show all the paperwork the lender asks for.

You may need sudden access to surplus cash, and a property loan is the best way to meet your monetary needs, particularly in times of financial crisis. With Shubham housing Finance, you can enjoy hassle-free repayment with current competitive market rates.

It is better than a personal loan, particularly if you're looking for a large amount.

Here is everything you need to know about availing a loan against property without providing your income proof or ITR:

#1 Apply for a loan with a co-applicant

It is okay if you don't have an ITR to prove. Only add a co-applicant to get a loan. This is the perfect way to get a LAP without ITR. If anyone from your family earning an income, you may add them to the loan as a co-applicant. It can be anyone from your wife, dad, mother, or sister. Having a salaried co-applicant would improve the chances of getting a loan and decrease the pressure of loan repayment.

#2 Explain your income source to the lender

When you apply for a Loan Against Property, our representatives will visit you to inspect the property against which you're taking the loan. At this time, describing the income information to the investor is very necessary so that they are kept updated during the period.

#3 Approach the lender, you already have an account with

Another tip to get a LAP without ITR is to avail loan from a lending institution with which you have a savings account. The lender already knows information about personal and financial matters. If you have the right facts and documents to persuade or reassure the lender, then they approve you for the loan. Since the lender knows your credentials, they might be able to come up with a specially tailored program for you.

So now you can avail a loan on your property from Shubham Housing Finance even if you don't have income proof or ITR, just inform why you don't have the documents. For more information, you can write your queries below!

For Easy Home Loan Calculations: Everyone Must Use This Tools

Software is the new future! Finding and designing the right technologies to give people the chance to do things better and easily is the technology's main goal. Technology has brought disruption to a variety of sectors over the last few years. Among them, several changes and improvements have been seen in various fields, particularly in the real estate sector.

Home loans are among the various aspects of the metaphorical building blocks for people who lack the financial capital to buy a property. Housing loan facilities have become increasingly common in today's era, primarily due to their accessibility and low-interest rates on home loans – thanks to the effect COVID-19 had on the economy.

Even after facilities such as availability of online home loans, one problem still remains among borrowers, i.e., EMI home loan calculation, eligibility, and tenure. When you apply for a home loan, these three considerations should be considered paramount. Since we know the best things don't come easily, estimates of house loans sometimes become a challenging job. The solution is Easy-to-use home loan EMI calculators.

Why Is Home Loan Calculation Important?

Many things go into the mind of a borrower when he agrees on conditions for housing loans. To name a few, interest rates, tenure, EMI, paperwork, qualifications, etc. These factors help the borrower determine their credit rating and compare various lenders – just to find the most acceptable NBFCs / HFCs that provides easy home loans.

In addition, home loan calculators help the borrower identify various choices that exist in a home loan. For example, if a borrower has extra funds for the prepayment of home loans, they will check the terms and conditions of the prepayment scheme themselves during the repayment period. The remaining EMI payments are unravelled by a home loan EMI calculator to assist lenders with prepaid calculations.

As we know, manual calculations often result in human errors. Being overconfident with self-made home loan calculations, especially when they are erroneous, leads to regret, primarily when critical financial decisions rely on them. This is why it’s safer to use calculators while working with numbers like home loan interest rates.

Different Types of Home Loan Calculators

There are numerous ways to make estimates of your housing loans simple and fast. Let's discuss the two most important tool to use for EMI calculation: 

EMI Calculator

An EMI is a monthly instalment intended to spread the loan burden over a set period of repayment. A home loan EMI calculator is used for simple and swift EMI calculations. It takes inputs such as the principal amount, the appropriate interest rate for home loans, and the period for loans to showcase EMI as the desired output.

Eligibility calculator

Since different lenders have different rules and regulations, understanding your eligibility for a home loan is imperative. You may use a home loan eligibility calculator instead of spending time on determining the variables. It determines the amount of home loan you are entitled to borrow based on your creditworthiness.

At Shubham Housing Finance, we help you know your home loan EMI beforehand so you can prepare your finances accordingly and make timely payments without stretching your budget. The online tool is simple to use for everyone and provides instant results according to the user's input values. To get to know EMI Interest home loan, click here visit here:- Shubham 

COVID Crisis: The Four Best Ways to Reduce Your Home Loan EMI Payment

With the Covid-19 induced lockdown affecting cash flows, making regular loan payments has become challenging for many people. For those who have taken home loans where the EMIs are high, this challenge becomes tougher. As a borrower, if you are looking for ways to make your home loans easy by reducing your EMI payments, follow the tips given below.

 

Change your lender:-

It is incredibly easy to shift lenders, and all you need to do is approach your current and new lenders and request a swap of the loan balance.

While taking a loan, choose a lender, who provides a low home loan interest rate. If you have now found a new lender willing to pay considerably lower interest rates, consider changing your mid-credit loan. And if you can't find a lender with a lower interest rate on home loans, you can try one willing to extend your term on repayments. Before you change lenders, use an online home loan EMI calculator to know precisely by how much your EMIs can go down.

Pre-payments help:-

Previously loan pre-payments had come with lots of fees. However, most NBFCs & HFCs such as Shubham Housing Finance and many other housing finance companies don't take pre-payment, enabling borrowers to repay substantial amounts of their home loans before the tenure ends. If you want to lower your EMIs and the amount of interest paid, prepay online, or offline your home loan at the beginning of your repayment tenure.

Make a bigger down payment:-

A higher down payment reduces the amount of the principal loan, which means that the interest payable and the EMI charged also decrease automatically. If you have some extra savings, you can use while apply for a home loan to make a substantial down payment.

Choose longer tenures:-

If no other option works for you, extend the tenure of your home loan. With a longer-term on loan repayment, you'll have to pay more interest, but your EMIs will come down dramatically. Negotiate with your lender to prolong your term on repayments. Determine the exact amount of interest you will pay using an EMI home loan calculator before you make this decision.

 

Before selecting a lender, read the home loan eligibility requirements for tenure extension, refinancing, or pre-payment. Using clever financial planning and pounce on opportunities for EMI reduction whenever possible.

  

However, be wary about EMI reduction methods which require higher interest payments on home loans. You can easily apply for a home loan with reduced housing loan EMI burden with proper preparation, and keep your savings secure for emergencies.

What To Do If My Home Loan Application Gets Rejected?

Owning a home is one of the significant moments of our life. A home is a pride that we feel when we own our own home.

 

Buying a home gives a sense of security but also impacts your long term financial goals. After all, not everybody can purchase a home with available cash or bank balance. This is where you need to finance your home with a home loan.

 

Here, let us understand why your loan application was rejected to proceed with the rectifications. Once you know and rectify them, it becomes easier to avail of high-value loans with easy-to-meet eligibilities.

 

Shubham Housing Development Finance Company provides loans to those who are earning cash income. All you need to check is the eligibility criteria and documents.

However, a rejection of loan application may be a result of several reasons.

· High debt-to-income ratio.
· Property value not high enough for the applied loan amount.
· Previous defaults
· No proper documents

Here are some of the reasons how to narrow that gap to boost the odds of approval when you apply for the loan.

1. Identify the Cause of the Denial

It's important to find out why your loan application was rejected. Ask the lender about why your home loan got rejected as the lender will generally be glad to give you an explanation and are required to provide certain disclosures. This will help you to reapply for a home loan.

 

2. Pay Off Any Outstanding Debts

Paying off your outstanding debts reduces your debt-to-income ratio and thereby increases your repayment capacity.

3. Mortgage A Property Of High-value

If you own several properties or planning to mortgage a property, always remember mortgage a property that has a high market value. It not only increases your chances of availing but also fetches you a high amount of Loan.

4. Build A Strong Credit Score

 

Building a credit score is a long-term initiative, and by paying bills on time you can build the score high and also increases your chances of loan application approval.

5.Lower your home loan amount

If the reason for rejection is your monthly income, then try to lower your home loan amount, this will help the lender meet the bank's prescribed norms within limits.

6. Any documents if missing

Take legal advice if any important property paper is missing. There is always a solution to a missing document. No lender wants to lose a customer. At Shubham, we always ensure to help you determine the right loan for you.

If you've any more queries, do let us know, we are here to help you.

How To Avail Loan Against Property Without Income Proof ?

 

Almost every one of us has had a financial crisis in our life at one point or another. As in such crucial times, we often think about where to finance or borrow the required amount of money on an urgent basis. During such times, your property can help you fulfil your needs and aspirations.

People take a loan against property for many reasons like to expand their business, education, study abroad, take a vacation, or for medical treatments.

Suppose you have a property registered under your name, then you can approach the lender asking for a loan against your property. The lender will assess the market value of your asset and will sanction the loan if the title is clear.

But the most crucial thing is that even if you submit your property documents as collateral still most of the leading banks in India will ask you for income proof as it determines the repayment capacity of the borrower.

However, if you do not have a formal income proof needed by banks, there is no need to worry. As now there are few housing finance companies such as Shubham housing finance, Aadhar housing finance, Awas housing finance which provides loans to the individuals who earn in cash income.

Generally, banks will not provide you with a loan if you are getting salary by cash, you are in a business where sufficient income proof is not available like small shopkeepers, suppliers, or any other profession.

Here in this article, we will discuss everything you need to know of availing a loan against property without income proof.

Keep the following factors in mind to avail loan against property without income proof. Read on to know more.

#Clear all your dues on time: 

If you own a credit card and pay all your dues on time, then you are likely to get an approval for the loan instantly without submitting any income proof. Clearing off debts not only helps in lowering the interest rates but also reduces the debt burden.

#Maintain a good credit score:

A good credit score gives the lender a sense of assurance regarding timely payment of EMIs from your end.

Remember, a low credit score can lead to loan rejection or approval at a high-interest rate. On the other hand, having a good credit score makes you eligible for affordable loan interest rates and other beneficial terms with the lender.

# Keep a Check on your Savings: 

Maintaining an excellent monthly balance along with regular savings improves the chances of getting a loan against property approved.

#Justify your income to your representative: 

In case of lack of income proof or ITR, you must specify your income source and why you do not have the necessary documents. Always make sure to provide the information in detail because the final decision is likely to depend on the information you provide.

#Apply with a Co-Applicant: 

Assigning co-applicant increases the chances of your loan approval quickly. If your mother, father, brother, son, spouse, or unmarried daughter is an earning member with valid income proof, you can avail home improvement loan with the co-applicant. In such a case, lenders will consider the repayment capability of your co-applicant while determining loan interest rates and the loan amount.

#Opt for a Lower Loan to Value: 

A loan to value is the percentage of the property’s market value offered as a loan by the lender. It is less of a risk for the lender, and for the borrower since less is being borrowed. Making higher down payments and availing a lower LTV improves your chances of getting the loan approved without income proof, and it posits positive borrower credibility.

#Provide income proof from other sources:

If you have an informal source of income such as rental income, fixed deposit interest income or income proof of any family member, then you too can stand a chance to get your loan approved.

Consider these pointers to avail the Loan Against Property at an affordable interest rate from Housing Finance companies like Shubham Housing Finance who are there to help people with informal income streams.