How to Reduce Home Loan EMI with the PMAY?

The biggest for most Indians is to own a house. As owning a house is a matter of pride for some, while to others gives financial security and mental peace. Thus the Government of India has launched a housing scheme known as Pradhan Mantri Awas Yojana (PMAY) to bring affordable homes for the low-income groups.

The scheme is mainly for the economically weaker sections (EWS) of the society, low middle-income group (LIG), and middle-income group (MIG) individuals, and the subsidy available is termed as "Credit- Linked Subsidy Scheme."

The Government of India takes into account the whole family’s income while deciding the subsidy to which an applicant is entitled. Moreover, the subsidy rate provided to applicants is often calculated according to the economic category of which they are a part of.

Now, you must be thinking about whether you are eligible?

How can you avail this subsidy?

How should an individual apply for the scheme?

If yes, here is all that you need to know about the scheme and how you can reduce Home Loan EMI with the PMAY.

Eligibility Criteria: 

The first thing you should check is the eligibility criteria. All home loans sanctioned should be eligible for availing the interest subsidy.

-People who fall in the annual income between 3 lakhs to 6 lakhs are eligible to avail the subsidy of 6.50%

-Individuals with a yearly income of 12 lakhs and 18 lakhs can avail a subsidy of 3% to 4% on their interest rates.

-To avail this scheme, families with a husband, wife, and unmarried children are eligible. It involves constructing a new house, or obtaining a newly built home, or even repurchasing an existing home. Even young unmarried men and women may apply for this PMAY CLSS subsidy.

Interest & EMI of the home loans under the PMAY

If you're applying for an interest subsidy under PMAY, your lender has to submit the application to the National Housing Bank.

-The maximum tenure of the housing loans under the PMAY scheme is 20 years.

-Once you are eligible for the subsidy, then the National Housing Bank will pay the entire subsidy in one go to your lender. This further reduces your EMI burden.

More Preferences Are Given To Women

As per the PMAY scheme, women are given more preference than men. Single, working women, widows, differently-abled women, transgender, and people belonging to scheduled castes and tribes are given first preference.

How to apply for a home loan under this scheme:

Borrowers should express their desire to avail the subsidy. The lenders then get an agreement signed from the customer, ensuring that this is only home under their name. To avail this subsidy, To make use of this subsidy, no additional processing fee is charged.

The borrower may then either choose for reduced EMIs or, repay the loan easily with the existing EMI.

To increase the implementation of this subsidy, several housing financial banks such as Shubham Housing Finance, Aadhaar Housing Finance, and non-banking financial institutions have been chosen as primary lending institutions.

Hope this article is helpful for you. If you have any doubts, you can reach us at any time. We are here to help you!

3 Important Points of Obtaining Loan Against Property without ITR

A loan against property is a loan that is taken against the residential or commercial property by pledging your property as collateral. The lender assesses the property's market value before sanctioning the loan.

But the major requirement is that the lender will ask for income proof even though you offer collateral as income is an important parameter for deciding the amount of loan that can be sanctioned to the borrower.

Presumably, you might be thinking about how to apply for a loan against property without income proof.

Well, there are few housing finance companies such as Shubham Housing Finance, Aadhaar Housing Finance, where you can apply for a loan against property without showing your income tax returns.

With Shubham Housing finance, the process is easy and simple. All you need to provide is Identity proof, address proof, bank passbook, and property papers. With attractive interest rates, you can enjoy hassle-free repayment.

Here are some of the tips that you need to know about availing a loan against property without providing income tax returns (ITR).

#1 Apply for a loan with a co-applicant

It is all right if you do not have an ITR to show. You can add a family member who earns an income such as father, mother, sister, or brother as a co-applicant when applying for a loan against property. This is the easiest way to get a LAP without income tax returns. If you are already unemployed or there is a cash crunch, including a salaried co-applicant will increase the chances of getting a loan and reduce the burden of repayment of the loan.

#2 Justify the reasons for not having income proof

Discuss with the lender or the bank manager, if you have not filed for an income tax return. Reassure them that you will make your repayments on time. The loan officer will consider the prior income and calculate your repayment capacity.

#3 Explain your income source to the lender

The lending institution will send in some officials when you apply for Loan Against Property to inspect the property against which you are taking the loan. At this point, it is very important to explain to the lender your income details so that they remain informed throughout the tenure.

We all know that it a difficult task to get a loan against property without income proof. But with Shubham Housing Finance, you won't face any challenges as they offer loans, especially to those who earn cash income.

So, don't worry if you don't have any income proof, Shubham Housing Finance has got your back and is there to help people without formal income proofs.

Do share your thoughts and concerns in the comment section below and we will try to provide suggestions or help resolve all your loan related problems.

How to choose the right housing loan for yourself?

Having a house is an aspiration for most working-class people in India. In the metropolitan and cosmopolitan cities, most people need to take loans from banks or housing finance companies that offer loans for housing. But such lenders don't merely provide loans for several other purposes.

Here is a look at the different housing loans you can take from Shubham Housing Development Finance Company.

Home loan:

The most popular and well-known category of loans is a home loan. One can take this type of loan to purchase either a new or second-hand home. At Shubham Housing Finance, we provide you loans based on your income.

Home Improvement loan:

It is a secured loan taken to undertake any renovations of your self-occupied property such as restructure, renovate, upgrade or rebuild your house. An individual can avail this loan depends on the cost of the renovation and your capacity to repay.

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. These loans usually have lower EMIs, easy to obtain, and have lower interest rates.

Shubh Yodha Home Loan:

This loan is dedicated to the frontline warriors who are battling against COVID 19 pandemic. With Shubham Shubh Yodha home loan, the frontline workers can look forward to a better home, with minimal documentation and affordable interest rate.

Shubh Vyapaari Loan:

Shubh Vyapaari Loan is dedicated to the small business owners to support their growing business needs and expansion of the current business. Shubham brings you a tailor-made loan product to suit all financing needs of a small business. This loan is given after taking the market value of the property and your income into consideration.

Depending upon your need, we provide you with the loans to help you fulfil your long-cherished wish of owning your own house. To know more about our loans, visit us at Shubham

Joint Home Loan: Benefits of adding a co-applicant to your home loan

Everyone yearns for a place to call home. In most Indian cities, buying a home is still a distant reality for many people, although a home loan is the one that has made this possible.

But for many of us, taking a home loan is a big responsibility to shoulder. As there are multiple factors associated with a home loan and it’s not always possible to take this single-handedly.

But if you show steady income streams, you may not face many difficulties in buying a house. For this, the applicant can choose alongside a co-applicant to take a loan. In other words, a joint Home Loan is the solution to this situation. It allows two people to be the co-owners of the house and co-borrowers of the home loan while taking into account their combined income.

Here are some of the advantages of the Joint Home Loan. Read on to know the benefits: 

1. Can get a higher loan amount: 

You can undoubtedly get a loan amount more than your eligibility when you go with a joint home loan. Hence, it is always beneficial to go for a joint home loan instead of opting for a Home Loan individually.

2.Tax benefits: 

Joint Home loan applicants can enjoy more benefits than individual applicants. Moreover, each of the applicants can claim a maximum of Rs. 1.5 lakh on principal repayment and Rs. 2 lakh on interest payment under Section 24 of the Income Tax Act.  

 

3. Sharing the debt burden:

This is one of the most significant advantages of a joint home loan. You can share the debt burden of the loan with your co-borrower. None of the borrowers is responsible for paying the whole loan by themselves. Both Loan co-applicants can join the ownership as well as both can contribute to the repayments. By doing this, the debt burden is divided, which gives the borrowers a bit of relief.

A joint home loan works in favour of both the borrowers and lenders. Borrowers can be benefited from increased eligibility, and the lender gains from assured repayments.

Thus, it is best to add a partner or family member as a co-borrower so that you can opt for a bigger house while enjoying the tax benefits.

Many banks and NBFCs like Shubham Housing Development Finance lets you add a co-applicant in your home loan to help the applicants avail above benefits.

Hope this article helps you in your future. If you have any further doubts or queries, do let us know in the comment section below!

Not able to pay the home loan EMI to Finance Company? Now Here what to Do

The biggest financial decision one takes in his/her life is of buying a house as it involves a significant chunk of one's savings and investments. If you are buying your home on EMIs, then it is important to gather sufficient funds for it.

Even if you buy it on EMI, you'll still need to pay some down payment. There could be several reasons why one cannot pay the EMIs; it could be due to sudden job loss, reduced savings, major medical expense etc.

But if you fail to pay EMI for six months, then the bank can take over your house. But this is not the case with Shubham Housing Development Finance Company as they allow you some time to repay the money; also, the representatives will get in touch with you to know why you are skipping to pay back your loan on time.

Here are four options to help you pay back your EMI home loan in difficult times.

1. Utilize your emergency fund

Income shortages are the biggest obstacle to repaying your home loan. If you lose your job or other sources of income savings dry up, you might face this problem. Hence, maintaining an emergency fund is advisable either by keeping the amount in a savings account or in some debt instrument such as fixed deposits.

To avoid such situations, you should always save a bigger amount to your emergency fund savings so that it can help you pay your EMIs and keep you from defaulting.

2. Always prefer to take loan insurance

There are various loan insurance plans provided by different lenders that can cover your EMIs for a short period. You can consider buying such a plan along with your home loan.

3. Raising funds through the disposal of assets

If your income and savings have been exhausted and you are unable to repay the loan, then you can look at other options to raise some cash. You can dispose of your assets like gold, a car that now seems like a luxury, electronics that you don't need, or withdrawn from long-term investments like the Public Provident Fund (PPF).

4. Contact your lender to find a solution

You can discuss the matter with your lender if you are unable to pay EMIs. It would help if you gave them a genuine reason for not paying the loan, such as job loss, a severe medical condition, or short-term difficulty. You can try to convince your lender to understand your challenges and convince them that you will be able to resume re-payment of your loan soon.

The best solution would be not to get first into this situation. But once you're in it, remember panicking won't take you anywhere. At Shubham, we take care of our customers first. If you are facing problems, do contact us or speak to us, we are there for you.

Things to Check Before Transferring Your Home Loan

Want to enjoy smooth processing of home loan or reducing your EMI? 

Even if you have a current home loan with a bank or financial institution, you can transfer the outstanding home loan amount to another home loan company. When the home loan is transferred from one lender to another, it is known as a transfer of the home loan balance.

To carry out the balance transfer with Shubham Housing Finance, you are required to submit only a few necessary documents. '

Below are the documents that are required for Shubham home loan balance transfer:

1. Consent Letter

You need to submit your prevailing lender a formal written application notifying them of the transfer of the home loan and requesting a letter of consent.

2. NOC – No Objection Certificate

Your present lender is required to issue you a No Objection Certificate stating that they have no problems transferring your home loan to the new lender and the outstanding amount.

3. Loan Agreement

Loan agreement or sanction letter from the existing lender is compulsory for a transfer of the balance of the house loan.

4. Foreclosure Letter

This is one of the most important documents required for transfer of the home loan balance transfer. It is a letter declaring that your home loan will be foreclosed and that no outstanding balance amount is pending. This letter is obtained once the new lender settles with the existing lender about the outstanding amount of the home loan.

5. Property Documents

The set of property documents is required for a home loan transfer. This entire set is necessary to submit to your new lender.

6. Post Dated Cheques

Collect all cheques with your current lender that are pending. During the time of obtaining the loan, you are required to submit these cheques to the new lender.

7. KYC Documents

These are to be submitted to the new lending bank. Whether it is a balance transfer or approving a home loan application, with Shubham Housing Finance, you require the standard documents.

-Identification Proof

-Address Proof

-Property Documents

- Property purchase documents

-NOC from the property developer

-Registration certificate

-Stamp duty papers and payment receipt

The documents will vary as per the lender's requirement. Now that you have an extensive list of documents necessary for transferring home loans make sure that you check with your home loan company before you start.

If you have any more queries, do let us know in the comment section below. We are there to help you!

Apply for a Home Loans: First Check These Myths

It's a dream for almost all middle-class families in India to have a home of their own. We Indians give predominance to homeownership be it small or large. But rising property prices and demand for a home in posh locations would eat away nearly all your hard-earned savings.

Inevitably, most people looking to buy a house would have to apply for a loan from banks or housing finance companies, to pay the bill.

It is important to make a more informed decision when applying for one and be transparent. Ensure that there is no room for misunderstanding or error. The financial decision that a person takes at the time of securing a home loan will remain with them for a substantial part of their life.

So, Check These Myths Before Applying for a Home Loan.

1. Short Tenure Loan is Best

It's a misconception that short-term loans are the cheapest. Generally, a home loan comes with a long tenure, and the underlying truth when it comes to a home loan is that long-term loans are the safest option. Since the borrower remains indebted to the lender.

The equated monthly installments (EMI) would be comparatively higher in the case of short-term loans as compared with the long-term ones. Higher EMIs would affect your monthly budgetary expenditures, leaving no space to prepare for any windfall. Although short-term loans help the borrower pay back the sum of the loan quickly, they are not an ideally suited choice. At Shubham Housing Finance offers you with customizable EMI options making it easier for the customers to repay the loan.

2. Rejection of Loan Application due to poor credit score

Though most leading banks are strict about credit scores and getting a strong credit score would help you get quick approval of a home loan. It is not true that the credit score alone will determine the loan application's fate. A credit score of more than 700 is considered as good.

At Shubham Housing Finance you can apply for a loan with a low or zero credit score. Only you should have the required documents to show when applying for a loan.

3. Lower interest loans are best

Most of the applicants prefer lower interest rates on their home loan but the lender will determine the interest rate on a housing loan based on several factors including your income level, loan tenure, credit score, loan amount, and so on.

While low-interest rates look attractive, but in the end, the borrower may end up paying higher down payments. With Shubham Housing Development Finance Co. you do not have to pay any additional charges.  Also, you can enjoy fast processing and quick disbursal of your loan.

So keep the above-mentioned myths in mind when applying for a home loan.

Also, if you have any further queries or you would like us to add anything, kindly mention your thoughts below!