HOME LOANS LIKELY TO GET CHEAPER THAN BEFORE

A new trend has emerged, which seems to be good news for both you and your lender. With the NDA government winning General Elections 2019, predictions are made that its focus would be on further stabilizing the bank's lending rate.

Borrowers can pay less on their mortgages as banks shift to a new system of linking such loans this week to benchmarks prescribed by the central bank.

Loans are expected to become cheaper as the banks will link interest rates on loans to retail and small business borrowers.

To aid effective downward transmission of the RBI's policy rate cuts, the central bank had on 4 September said that the lenders must link all new floating-rate loans for housing, auto, and micro, small, and medium enterprises (MSMEs) with the external benchmark.

It is expected that the home loans of above Rs 30-75 lakhs would be available at an interest rate of 8.25 percent. After the Finance Ministry's reforms measure, the financial banks of India came up with the latest development.

The Reserve bank Of India said that due to various reasons, the transmission of policy rate changes to the lending rate of banks under the current marginal cost of funds based lending rate (MCLR) framework has not been satisfactory.

Therefore, banks must link all new floating rate personal or retail loans to MSMEs to make the transmission of monetary policy more effective to boost credit growth, consumption, and investment to revive the economy. However, there could be additional charges added on to this based on the profile of the customer.

New home loan borrowers can now start exploring home loan options with the banks. Do not merely look at the bank’s MCLR but know the actual home loan interest rate before finalizing the deal. Banks are allowed to charge an MCLR before disbursing the loan. Finally, make a pre-payment to repay the home loan as soon as possible and own your home with 100 percent equity of your own.

Budget 2019 - Government Thrust To Drive Affordable Housing Segment

The real estate sector has witnessed a sign of recovery in recent times. The newly formed Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman presented the Budget 2019-2020 in the Parliament on 5th, July 2019 to encourage the growth of the housing segment through various measures.

Focusing on the goal "Housing for All 2022", Nirmala Sitharaman has announced significant tax benefits which will boost the real estate industry.

EXTENDED BENEFIT

To make housing more affordable for all sections of society, the Government of India started Pradhan Mantri Awas Yojana (PMAY). An initiative to provide affordable housing to the urban poor with a target of building 20 million affordable houses. Recently, the government has announced that the GST rate applicable on home loans will be reduced from 8% - 12% for those who apply for the loan under the Pradhan Mantri Awas Yojana schemes.

INTEREST DEDUCTION FOR THE FIRST TIME HOME BUYERS

First-time homebuyers can claim deduction under section 80EE for interest paid on a home loan up to a maximum Rs 50,000 until the loan is fully repaid. This tax benefit is expected to boost demand substantively. It will significantly benefit first-time homebuyers to enjoy the benefits of interest subvention under the CLSS scheme.

  

CREDIT GUARANTEE TO PSBS TO BUY NBFC ASSETS

Non-banking financial companies (NBFCs) play a vital role in capital formation. To provide one-time partial credit guarantee worth Rs 1 lakh crore to public sector banks for the purchase of pooled assets of financially sound Non-Banking Finance Companies (NBFCs) during 2019-20.

INCREASE IN DEDUCTION OF INTEREST ON HOME LOANS

Interest paid on housing loans is allowed as a deduction to the extent of Rupees 2 lakh in respect of the self-occupied property. To provide a further impetus, an additional deduction of up to Rs 1.50 lakhs on interest paid on loans borrowed up to March 31, 2020, for purchase of an affordable house valued up to Rs 45 lakh. Therefore, a person purchasing an affordable home will now get an enhanced interest deduction up to Rs 3.5 lakh.

TRANSFORMING RURAL INDIA

By 2022, a total of 1.54 crore rural homes would be completed. In the second phase of PMAY home loan, 1.95 crore houses are proposed to offer to the eligible beneficiaries. These houses will offer amenities such as toilets, electricity and LPG connections.

CHANGING URBAN INDIA

Under Pradhan Mantri Awas Yojana (PMAY-Urban), over 81 lakh houses with an investment of about Rs 4.83 lakh crores sanctioned of which 47 lakh houses were under construction. 26 lakh houses have already been completed so far, and 24 lakh houses allotted to the beneficiaries.

BENEFIT FROM THE EXEMPTION OF TAX ON NOTIONAL RENT

Earlier, people would hesitate to invest in the property for rental income as they were charged tax on the notional rental income on the second house property. However, with the exemption of notional rent, this hurdle is removed from the way of investors.

This budget will further push and spread the affordable housing segment in India. 

Tips To Avail A Loan Against Property Without Income Proof

A loan against property is a loan that is taken against the mortgage of a residential or commercial property. It is a secured loan, which helps borrowers meet their business and financial needs.

The loan is given as a certain percentage of the property's market value, usually around 40 - 60 percent. It is considered as a secured loan as the property is termed as security against the loan.

Here are some of the tips that might help you while availing for a loan against property:

1. Clear Communication with Your Relationship Manager

Discuss every concern and clarify your entire query with the relationship manager. A relationship manager suggests options on how you can pay to make loan repayments. You can also ask them about the alternative documents needed to process your loan in case you don't have any formal income proof document or ITR.

2.  Add a Co-Applicant

A co-applicant is considered as a co-borrower. If you have a family member who has a valid credit history and a regular income can be responsible with the main applicant. Adding a salaried co-applicant will increase the chances of your loan getting approved.

3. Explain Your Income Clearly To Your Officer

Before accepting or rejecting your loan, a bank officer will visit for inspection. At this time, it is essential to explain your income details to the concerned officer. Also, do inform the officer if you do not have documents like income proof or ITR form. As the officer will take into account all the information provided by you when calculating your annual income and repayment capacity.

4. Check Your Savings Bank Account

While approving a loan against property; the lender will take a look at your banking routine. If you have good banking routine and have for all time maintain funds in your account, the chances of your loan being approve increases.

5. Consider Peer-To-Peer lending

it is a recent development in the lending industry. In a P2P platform, funds raised through crowd-funding are disbursed to the eligible borrowers with an interest rate. You may be charged a high-interest rate based on the risk factor under P2P lending. If you do not have applicable income proof or ITR information, this might be a choice.

6. Maintain good CIBIL record

 You should for all time maintain a good CIBIL record and it is even extra important if you don’t have a valid income proof.

Getting a loan against property without income proof and ITR form is an arduous task. It needs a lot of patience, convincing, and explanation.

 Hence, some of the non-banking financial companies (NBFCs) such as Shubham Housing DevelopmentFinance Company, Aadhar Housing, IIFL provides various kind of loans with less documentation.

Hope you found this article helpful, do let us know if you are facing trouble is getting your loan approved. Our team will get back back to you with viable solutions.

Top 10 tips to keep in mind while taking a home loan

There is no place like home. Buying a home is one of the biggest and important decisions in life. A right choice can help you to secure your and your family’s future.

However, every individual makes their decision carefully when it comes to taking a home loan. It is utmost important to understand all the fundamental aspects of a home loan, documents required, eligibility requirements and benefits to avoid these simple mistakes.

If you are a first-time buyer, then it is necessary to know a few crucial things before you invest your money towards buying a house for yourself.

Eligibility: Once you have decided to take a loan, the first thing you need to know is how many loans you are eligible for. The factors influencing your eligibility include your credit score and history, your income, and your current liabilities.

Rate of interest: Once you know your eligibility, all you need to check is the home loan interest rate. Before taking the loan, you should compare the interest rates with other financial banks. To understand how a home loan works, one needs to understand what interest means.

Interest is the period of the interval at which the loan amount balance is calculated. You can also calculate your home loan interest rates and even understand the factors that affect the interest rate.

Monthly EMI: EMI is one of the most critical factors that make an influence on the borrower’s mind to take a home loan decision or not. EMI is the monthly outflow of money that will go towards the repayment of your home loan. You can also check with the help of EMI calculator how much monthly EMI you would have to pay every month.

Down payment — Banks require the borrower to contribute a certain amount as down payment while buying a home. The down payment varies from one lender to another and also depends on the borrower’s credit history/income.

Type of interest rates — There are two types of interest rates available for taking home loans: fixed and floating rates.

Fixed interest rate — Fixed interest rate on home loans remains the same for the entire loan tenure irrespective of the market conditions.

Floating interest rate — If the home loan interest rate varies periodically over the loan tenure, then it is known as the floating interest rate. Marginal costs of lending rate (MCLR) are revised within a period, which leads to change in the interest payable as well.

Credit Score — A borrower’s credit score is one of the most important things to consider while checking a borrower’s home loan eligibility and interest rate. The credit score of a borrower means the creditworthiness of the person, which tends to be one of the primary determining factors for home loan approval. A good credit score is one of the most important factors for the lender to check home loan eligibility.

Processing Fee — When applying for a loan, an amount needs to be paid to the lender, which is known as processing fee. Processing fees can either be a fixed amount or a percentage of the loan amount.

Read Documents Carefully: Before endorsing in documents, kindly read everything written in the loan agreement. It is important to remain familiar with the terms and conditions.

MCLR — MCLR is introduced by Reserve Bank of India at which banks will now lend money to new borrowers. It refers to the minimum interest rate, below to which a bank does not permit.

Documents Required for Home Loan

The documents that need to be submitted may vary from one lender to the other. Some of the necessary documents to be submitted are as follows:

1. loan application form,

2. Passport size photographs,

3. Aadhaar Card,

4. Identity proof etc.

There are few financial banks which provide home loans without any worries. Some of them you can have a look Subham Housing Development and Finance, Aadhar Housing Finance, SBI, HDFC etc. Hope this article helps you to find the right home loan. Source by https://shdfchomeloans.wixsite.com/website/newsroom/top-10-tips-to-keep-in-mind-while-taking-a-home-loan

Difference Between Top-up Loan and Personal Loan

Buying a home is the best decision an individual can make. One can always opt for loans, but getting a loan which has pocket-friendly interest rate is difficult.However, there are various banking sectors that have come up, which has consumer-friendly loan options. If you are planning to buy a home, then you can choose between a personal loan or top-up loan. 

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

There is a little difference between the top up loan and personal loan. A top up loan is an additional inclusion to your existing home loan. To avail, top-up loan, the customer has to repay the existing home loan. The lender provides home loan top-up only if the borrower has provided collateral for the same.  A borrower can avail tax benefit on home loan top-up only, for their child’s education or home extension, renovation or improvement, etc.

However, a personal loan is a loan in which an individual to meet his/ her requirements(Cudnt understand this line, so cudnt edit). 

A personal loan is sanctioned to an individual based on his/her repayment capacity, income, net monthly salary, credit/CIBIL score, employment history, occupation, etc.  

The key features and benefits of Top-up Loan
 
No Additional Collateral: Top Up Home loans does not require any additional collateral. You need not have to provide any evidence of holding an asset for availing this loan. Your home loan agreement/paper will act as collateral.

Interest Rate: Top-up loans are available at interest rates similar to home loan rates, though it may be a few basis points higher than the original home loan rate.

Loan Tenure: Generally, the loan tenure is 10 years to 15 years. Sometimes it can go up to 20 years based on your existing home loan tenure.

Approval: Generally, it takes 2 days to get an endorsement of the loan. Most of the financial banks check your compensation history and capacity of the receiver before approving the loan.

Find out how a personal loan is different from top up Loan  

Home Loan Top-up
Home loan property acts as a collateral
Interest rates are slightly low
Higher loan tenure
Approval generally takes time
Tax benefit if used for home construction/ extension

Personal loan
No Collateral required
Interest rates are higher
lower tenure up to 7 years
faster loan approval
no tax benefits

For taking loan visit Shubham Contact Us 

Why You Should Require a Home Loan

Purchasing a new house with cash amount in one go is impossible. So one can apply for a home loan according to their own requirement. Buying a home can be the best rewarding decisions of your life. By taking a home loan from a reputed company you can make it both memorable and hassle-free.

We are living in a period where our dreams are expensive and when you have a helping hand with you, one need not have to take any stress. The top lenders are offering home loans at an affordable rate and also within your budget, which makes our life sorted.

The best finance companies make the whole process simpler and faster with various options such as low-interest rates, tax benefit, flexible repayment options, etc. You can now take these advantages, here they are:

1. Low-interest rates: Almost all banks in India offers home loans at affordable price. Thus it is quite difficult to decide from which bank to take the home loan. Currently, the top financial companies provide home loans at a low-interest rate. Some of the banks are SBI, HDFC, Axis Bank, and Shubham Housing Development and Finance. However, you can check which bank has the lowest processing fee and the eligibility criteria.

2. Tax benefit: Buying a house is everyone's wish and it comes with multiple tax benefits which significantly reduce your tax. Considering the fact that when you take a home loan to buy real estate, the loan is of a large amount. When you use them correctly, you will be able to save a significant amount of money. You can also claim deductions with regards to the interest that you pay on your home loan under Section 24 of the Income Tax Act.

However, Shubham housing finance provides a loan with lots of benefits than any other banks and fetches you a tax benefit on the interest component.

3. Flexible repayment schedules: Home loans last for long periods of time, usually more than 10 years. This means that you can plan your repayment in an appropriate manner, taking the long tenure into consideration. SHDFC helps you fulfill your dream quickly and repay your loan comfortably as they have various modes of repayment options.

4. Home loan EMI calculator:  A home loan EMI calculator would help customers who are willing to take a home loan. It helps you to decide beforehand how much loan amount you want, what interest rate you are comfortable with and the tenure of the loan.

Are you looking for a home loan? We are here to help you. Kindly reach us at https://shubham.co/contact-us.php

Easy Home Loans are available for everyone today.

Everyone needs help at one point or the other. The same is true for financial assistance. Sometimes people borrow money from others to make their wishes come true.

In earlier days people used to take loans from rich Sahukaars or their relatives instead of borrowing from banks. However, this arose many problems for the borrower as such lenders charge an unreasonable rate of interest and in turn harass the borrower to repay the increased loan amount.

Today. it is easy for everyone to apply for loans as several finance companies provide loans to people who are in urgent need. There are various types of loans like home loans, home improvement loans, loans against property, etc.

Home loans are secured loans. It helps to fulfil all housing finance related needs. Using an EMI calculator, it is the easiest way to determine your monthly payouts and balance your budget accordingly.

To start a new business, you require a considerable amount of money. A person willing to set up a business may not have that enough cash which can meet out all his requirements. Thus Shubham provides customized loans to enable women entrepreneurs to start their own business at a low-interest rate.

SHDFC offers loans at low interest rates. Shubham Housing Finance offers a hassle-free home loan, house loan or housing loan for lower-income peoplewho want to buy, repair or renovate their home. We believe that everyone deserves the security of a home.

Different lenders have different policies. If you get a loan for the long term with a low rate of interest, then it is beneficial for you. Due to competition, lenders are trying their best to attract people by providing different schemes which in turn is good for people.

Some of the lenders who provide best housing loans are Aadhar Housing Finance, Shubham Housing Finance Development, SBI, Axis, ICICI etc. Now you can easily avail your loans from these banks. Source by