Everything To Know About Home Loan – Step-By-Step Guide to Home Loan – Amrit Adrino
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Everything To Know About Home Loan – Step-By-Step Guide to Home Loan

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Everything To Know About Home Loan For the majority of people, owning a home is a lifelong dream come true, but it’s also a costly endeavour. To make such a dream come true, buyers must put in a lot of effort, and the best way to do so is to get a home loan. It is possible to use a home loan to buy a new house, flat, or plot of land, as well as to renovate, extend, or repair an existing home.

Most people who want to buy a house do so using this type of loan. You can get a home loan from a housing finance company, a public bank, or a private bank, and pay it back in monthly installments to get the house of your dreams. Depending on the market value of the home, you may be able to finance between 80% and 90% of the purchase price. The lender will keep the house as collateral until the loan is fully repaid.

Types Of Home Loan

  • Home Construction Loan

If you already own a plot of land and need financing to build a house on that land, this is the right type of home loan for you.

  • Home Extension Loan

For example, you already own a home and you want to expand it to accommodate your growing family. This can be done with a home extension loan.

  • Home Improvement Loan

A home improvement loan can be used to pay for a variety of home improvement projects, such as repainting the interior or exterior of the house, installing new plumbing or electrical wiring, or waterproofing the ceiling, among other things.

  • Home Loan Balance Transfer

Transferring the outstanding balance of a home loan to a new lender can save you money if your current interest rate is too high or your current lender’s service is subpar. You can even look into the possibility of getting a top-up loan on your current one when you transfer.

  • Composite Home Loan

Building a house on your plot of land is possible with this kind of home loan because it covers both your land purchase and construction costs.

Benefits Of Taking Home Loan

  • Tax Benefits

Sections 24, 80C, and 80EEA of the Income Tax Act provide a number of tax deductions for home loans, making them one of the most tax-efficient financial instruments. If a home loan borrower meets the eligibility criteria, he or she can deduct up to Rs 5 lakh in total interest and principal repayments from his or her taxable income under Section 80C, Section 24, and Section 80EEA, which can reduce their taxable income by up to Rs 1.5 lakh if they are in the 30% tax bracket.

  • Opportunity To Grow Your Fund

To save money on taxes, even if you can afford to buy a house with your own money, you may prefer to get a home loan. As a result, you’ll be able to put your money to work for you. Floating rate home loans, for example, have interest rates currently ranging from 7.9% to 8.3% per year, depending on your credit score, loan amount, and term. Currently, lenders are offering record low-interest rates as a result of the RBI’s instruction to connect retail loan rates to an external benchmark such as the repo rate.

  • Liquidity Benefit

With an 8 percent interest rate, let’s say you have a home loan with an annual interest of Rs 3.5 lakh, and you’re able to claim all of Section 24 and Section 80EEA deductions for that year’s interest. To put it another way, if you fall into the 30% tax bracket, you can save up to Rs 1.05 lakh.

So, your home loan interest rate would be just 5.6 percent per year. It is possible to earn an annual return of 7.5% – 10% by investing your own money in a variety of financial instruments. It’s possible to lower your home loan interest rate by saving tax and increasing the return on your own money, which means you’ll have more money in your pocket to invest in the future.

Personal loans and collateralized loans carry higher interest rates than home loans when you’re short of cash. So, what’s the point of using your own money and being strapped for cash in order to buy a house? In the face of life’s unexpected twists and turns, your money will be there for you.

  • Due Diligence Of Property

To minimise your risk, banks conduct thorough due diligence before approving a loan. Prior to approving a loan, they check the project’s title, legal clearances, and related documents. Because the bank has already given its blessing to the project, getting a mortgage from them is safer than getting one from an unapproved lender.

  • Long Repayment Tenures

Home loans, in contrast to other types of debt, have a much longer repayment period, often ranging from 25 to 30 years. This is because purchasing a home necessitates a substantial loan.

The burden on the borrower is reduced when the loan amount and interest are spread out over a longer period of time.

  • No Penalty For Prepayment.

It’s possible to prepay your floating-rate mortgage whenever you have a large sum of money available without incurring a penalty. A shorter loan term is an advantage in this situation.

  • Facility For Transferring Financial Assets And Liabilities

A variety of factors, including the interest rate, fees, and customer service, can lead you to transfer your home loan from one lender to another.

Home Loan Interest Rates

As of March 2021, the average interest rate on a home loan in India is between 6.5 percent and 12.00 percent. Since the RBI-prescribed repo rate, inflation, and economic activity are all factors that affect rates, they can be quite variable.

Women, bank employees, and the elderly are all given a 0.05 percent discount on their home loan interest rates by some banks.

A home loan’s interest rate can be fixed or floating, depending on the type of loan. For as long as the bank specifies, the interest rate on a fixed-rate mortgage will not change. This type of mortgage is not affected by changes in the market.

Floating-rate home loans have an interest rate that fluctuates with the market. The borrower may or may not benefit from this arrangement.

Home Loan Eligibility

For home loans, banks have a list of requirements. Banks use a person’s credit history to get a sense of their ability to pay back loans. A credit score of at least 750 is generally considered desirable for a loan application. Other important considerations include the following:

  • Age
  • Employment Type
  • Minimum Annual Salary
  • Collateral Security
  • Margin Requirements
  • Liabilities, Assets, stability, and continuity of occupation
  • Residency status

Documents Required For Taking A Home Loan

  • Application form of home loan
  • 3 passport sized photographs.
  • Id proof
  • Address proof
  • Bank Passbook (atleast last 6 months).
  • Signature of the applicant.
  • Personal Assets.
  • Documents of property
  • Salary Certificate
  • Form 16/IT Returns for the past 2 financial years.
  • IT Returns/Assessment Orders copies of the last 3 years. (self–employed professionals)
  • Challans as proof of Advance Income Tax payment. (self–employed professionals)
  • Proof of business address for non-salaried individuals. (self–employed professionals)
  • IT returns/Assessment Orders copies of the last 3 years. (Self – Employed Businessmen)
  • Challans as proof of Advance Income Tax payment. (Self – Employed Businessmen)

Home Loan EMI Calculator

To put it another way, an EMI calculator is a simple but useful tool for determining how much money a borrower must pay back each month to the lender (bank). Using Home Loan EMI Calculator, you can get an idea of how much money you’ll have to put down each month for a specific loan amount, which will help you figure out how much you can afford to pay.

To use the home loan calculator, simply enter the desired principal loan amount (P), the desired loan term (N), and the desired interest rate (I) (R).

How To Apply For A Home Loan?

Thanks to the various channels now available as a result of technological advancement, getting a home loan has never been easier. There are two ways to apply for a home loan: in person at a bank branch or online.

home loan, loan

In order to process your application, the bank will require you to provide copies of the necessary documentation. CIBIL score, the value of the asset, eligibility calculation based on your income and liabilities, and more are all included in the initial processing of your application.

Banks make a decision on whether or not to approve a loan after thoroughly examining and verifying all supporting documentation.

Frequently Asked Questions [FAQs]

Q1. In the case of a home loan, who can be joint borrowers?

Answer: An immediate family member, such as a spouse or children, can be a co-borrower on a home loan.

Q2. What is the floating interest rate?

Answer: Floating interest rates mean that the interest rate changes with changes in the repo rate of the Reserve Bank of India.

Q3. How to use a home loan EMI calculator?

Answer: Input the loan amount, term, and interest rate into any EMI calculator to get an estimate of your monthly payment.

Q2. What are my options for making the loan repayments?

Answer: If you have a home loan, you must repay it in Equated Monthly Installments (EMIs).

 

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Max Life Insurance Review – Is Max Life Trustable?

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Max Life Insurance Review

Are you looking for a reliable life insurance company? If so, consider Max Life Insurance. Founded by Analjit Singh in 2000, this company is a joint venture between Mitsui Sumitomo Insurance and Max Financial Services. Besides life insurance, Max Life Insurance also offers child protection and development plans, investment funds, and retirement plans. In this article, we will look at the financial stability and customer service of Max Life Insurance.

Review of Max Life Insurance

In this Max Life Insurance review, we will look at the company’s claim settlement ratios and claim settlement history. The company is a reputable insurance provider with a long track record of providing good customer service. We will look at how much of a commitment the company places on the needs of its customers. We will also look at the company’s financial strength as measured by the IRDAI. Max Life has a strong track record and a superior human capital. With more than 35 lakh customers, more than 12,082 employees and 48,522 insurance agents and 239 offices in India, we will find out whether Max Life is a good investment option for you.

The company’s customer service hours are from 9 a.m. to 9 p.m. India Standard Time, and they offer live chat support online. Though Max Life Insurance does not receive an official rating from accredited agencies, its customer service has received a number of negative reviews from third-party review sites. The complaints focus on long waiting periods and billing issues. However, these are minor problems when compared to the company’s excellent service.

Review of Max Life Insurance’s financial stability

The company offers many insurance products, including a child policy. This policy provides a death benefit to the child, as well as the parents’ money for the child’s education. Max Life Insurance advertises this product as both a child plan and a parent plan. Both of these products combine the benefits of life insurance with education savings. In addition to the child plan, Max Life Insurance also offers several other insurance riders, such as health insurance, disability insurance, and accidental death benefits.

Review of Max Life Insurance’s website

A review of Max Life Insurance’s website will help you determine whether this insurance provider is right for you. This company offers many different types of insurance policies. The traditional life insurance policy, for example, offers many benefits and paybacks. Max Life Insurance’s website has a handy online form where you can input your information and receive a quote. You can also choose benefits and riders if you desire. Once you select a plan, you’ll receive a receipt with details of your policy and payment. The online portal allows you to select your city and educational background, as well as select your occupation.

This insurance provider offers a variety of riders for its policy holders. Riders are optional extensions of coverage. You can choose to increase your coverage amount based on certain milestones in your life. For example, you can choose a critical illness rider that lets you access the face value of your death benefit early if you’re diagnosed with a critical illness. Some riders require additional premium payments, but the overall cost of your policy won’t be prohibitive.

Review of Max Life Insurance’s customer service

This Max Life Insurance customer service review will explain how to get the best possible experience when dealing with this insurance company. The company’s customer service is excellent, and the executives are more than willing to answer your questions and address your concerns. You can even speak with the CEO of the company, Prashant Tripathy, himself an Indian national. However, if you’re not a citizen of India, you may find the eligibility requirements for this insurance policy a little frustrating. Regardless, Max Life Insurance’s customer service is unmatched by any other company in the industry.

Customer support at Max Life is available from 9 a.m. to 9 p.m. India Standard Time, and the company has live chat support online. The company does not have an accredited rating agency, but it does have many negative customer reviews on third-party review websites. Some of these complaints relate to long wait times and billing issues. You may want to do a bit more research before purchasing a policy.

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HDFC Term Insurance – Important Things You Should Look For

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HDFC life insurance company has its official website where you can buy term plans. You can choose from a range of options, fill in the details and choose your preferred plan. To make your payment, go through the steps outlined in the payment confirmation email. This will confirm that your transaction was successful. You will receive your policy documents soon. Once you have received them, you are ready to buy your term plan. In this article, we will discuss the important things you should look for when buying HDFC term insurance.

Check for add-on covers

When you buy a HDFC term insurance plan, you get a lump sum amount when you die. The plan offers nine types of cover with low premiums. There is also a choice between paying a set amount each month or a rising payout each year. If you choose the increasing payout option, the sum assured will rise by ten percent per annum. The sum assured can be increased at different milestones in your life.

Another important feature of any term insurance plan is the add-on coverage. These extra coverages increase the protection of the plan. For example, you can increase the insured amount of a plan by ten percent every year. If you want to increase the amount of cover for your HDFC term insurance plan, you simply make an additional premium payment to your existing policy. You do not need to undergo medical tests or purchase a new policy.

Check for regular intervals

HDFC term insurance is a simple, affordable way to provide substantial coverage for a low monthly premium. A term insurance plan covers you for a specified period and is the simplest form of insurance. It serves a purpose of financial dependence protection, and provides a lump sum death benefit to help you manage your expenses and reach your financial goals. Many term insurance plans also allow you to add riders, which can further argue for the policy.

When buying HDFC term insurance, you should check how the policy pays out. Different plans pay out in different ways. Some payout in a lump sum, others pay out in regular intervals. Others are geared toward paying out regularly, while others pay out at regular intervals. Make sure to check these regular intervals when buying HDFC term insurance. You should also check for any policy that offers a free look period.

Check for income benefit on accidental disability rider

You can add an income benefit on accidental disability rider to your existing HDFC Life insurance policy if you are disabled. This rider has certain eligibility criteria. You can choose to take the rider at the time of policy inception or at your policy anniversary, and the amount will be paid out over the policy term. You can choose the maximum sum assured payable under the income benefit on accidental disability rider of HDFC term insurance.

The maximum sum assured under the plan is 2 crores. This rider doubles the amount of the tax exemptions under section 80D. However, you should make sure that the beneficiary of the policy is responsible and competent enough to manage the funds. The accidental disability rider is available on many term insurance policies. This rider is worth checking out if you are prone to accidents. You can increase your sum assured to 80 lakhs with this rider if you live in hazardous areas.

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Aviva Car Insurance Singapore – Choose the Right One For Your Needs

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AVIVA Insurance is a leading insurer in Singapore, with different coverage plans to suit different needs. Choose the right one for your needs based on your budget and driving habits. This article will explain the differences between Comprehensive, Lite, and Prestige insurance plans, as well as the Dual-Year plan. You’ll also learn the benefits of each. If you have any questions or concerns, don’t hesitate to contact their customer service representatives.

Comprehensive plan

Aviva car insurance Singapore provides a comprehensive range of benefits are highly customizable. Among these benefits are named driver, increased excess, audio coverage, and loss of keys. You can save $25 by selecting the “Go Green” option. For additional peace of mind, the comprehensive plan also comes with best-in-class claims service. You can expect a response from an agent within 20 minutes of filing a claim.

The Singlife with Aviva Motor Standard plan offers a competitively-priced comprehensive insurance plan. Compared to other policies, this plan offers additional benefits to families, including unlimited windscreen claims, a free ride home after an accident, and eCall for notified authorities if the driver has an accident. You can also take advantage of a special discount of around seven to ten percent for a yearlong policy. This plan also includes personal accident and medical expenses coverage worth up to S$2,500.

Lite Insurace plan

The Singlife with Aviva Lite insurance plan from Aviva provides basic coverage and a savings of 20 to 30% compared to the market average. However, this plan does not include roadside assistance or the eCall feature, which are essential for drivers in Singapore. Other benefits include coverage for child seats, a brand new car replacement, and S$500 of medical expenses. If you’re looking for a low-cost insurance plan for your Singapore car, you may want to look at the Aviva Lite plan from Singlife.

Unlike many other companies, Aviva offers customized plans that cover modifications to your car. The basic plan waives the excess for young drivers, and the Standard plan reduces your NCD by 10%. Aviva also offers an extra coverage add-on called the No Claims Discount (NCD) Protector. This add-on resets your NCD after one accident and penalizes you for an additional accident. It’s worth noting that this premium increase applies only to new customers and the promo is valid till April 30, 2021.

Prestige Insrance plan

If you’re looking for a new motor insurance plan, the Prestige plan from Aviva Singapore might be the one you’re looking for. The company has introduced eCall, an automated rapid emergency call service, as part of its new Prestige tier. Last year, there were 118 fatal accidents and 122 lives lost. In such a situation, speed is crucial to survival. In collaboration with Starhub, Aviva has developed this technology.

This plan from Aviva comes with many perks, and it is the most expensive one. It includes a young driver’s waiver, Singlife with Aviva, and eCall, a service that contacts emergency services automatically in the event of an accident. It also has a low NCD penalty, and it has more benefits than other car insurance policies. Those with the Standard plan are also entitled to free ride home from the hospital.

Dual-year Insurance plan

The Singlife with Aviva Prestige car insurance plan is one of the best value plans for families with luxury cars. Premiums are between seven to ten percent below the market average. Premiums are guaranteed to not increase as long as there are no changes to the profile. Other benefits include eCall, which contacts emergency services if a car accident results in injury or death. You also get a free ride home if you are involved in an accident. Personal accident coverage is also included.

The Aviva Young Scholar Secure plan protects your child’s future and guarantees funding for his or her education. This plan has many benefits, including guaranteed money back in the event of the policy-holder’s death and a tax advantage on premium payments. The Aviva New Family Income Builder plan pays back premiums over the first 12 years and offers seven annuity options. The plan is tax-efficient as well, providing a lump sum if your child passes away.

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