Among the huge list of loan options available within the traditional lenders and some financial institutions, Mortgage Loan or Loan Against Property is relatively a most popular option among all. As this loan helps one to raise finance to fund his/her business. This is the only loan option comes into the mind who are thinking to expand their ongoing business or start-up. As this loan allows the borrower to take a higher loan amount with a relatively larger loan tenure to meet their business or personal requirement. Due to the presence of a plethora of banks and financial institutions offering this loan at a lower rate of interest, it has become easier to avail nowadays.
You may visit any lender’s website to apply for the loan in a hassle-free manner. Loan against property is popular as it has some noticeable benefits besides other types of loans available in the market. These loans are considered a better option when compared to personal loans due to their low rate of interest. Additionally, unlike gold loans, where your gold jewelry is deposited with the bank while availing a gold loan, you do not get the jewelry back until the loan is paid in full, but in case of loan against property you can continue using your collateral property kept as a security with the lender irrespective of worrying about the repayment options.
Additional Reading:-How Loan Against Property Can Help You To Start Your Business?
Sometimes it may happen that due to a medical emergency or some unforeseen situation you had to leave your job. Then, this question arises into your mind that will my EPF be taxed or not.
There are certain pre-determined rules related to EPF are framed by Income Tax department, following which the investment made into EPF is taxed. If someone is not into continuous service of employment and he/she withdraws the corpus amount, then this amount will be taxed as per the Income Tax law. On the other hand, if the amount is exempt from tax if you withdraw the compiled amount after the completion of 5 years. Different scenarios are mentioned above to help you understand in which case you will be taxed and in case you will be eligible for tax exemption. Knowing this calculation helps one to better understand about EPF and how it is beneficial to us in the long run. IT is very important to invest in EPFs to meet any emergency in the near future as it offers many benefits.
IT is an important investment towards your retirement plan. It is very important to know what is the tax aspect of withdrawing money from EPF account as many of nowadays are not aware of its tax implications.
The Home Loan eligibility calculator is a calculator which helps you to determine your Housing Loan eligibility. By using the home loan eligibility calculator, you can accordingly plan the amount that you would want to apply for and alternatively calculate your monthly loan EMIs that you need to pay to the lender till your whole loan amount is fully paid back.
Your net monthly income and repayment capacity play an important role in determining whether you are eligible for a housing loan or not. A home loan eligibility calculator helps you find out the loan amount that you are eligible for, based on these factors. Before applying for a home loan, you may check and compare your home loan eligibility by using home loan eligibility calculator to calculate loan eligibility in a few simple steps. Using the calculator is pretty simple- The applicant who wishes to apply for home loan may check his/her eligibility putting in a few details like enter your full name, your current mobile number, your net monthly income, place of residence or area Pincode, EMI on your existing loan, and your valid date of birth.
The home loan eligibility calculator will then tell you the loan amount you can successfully apply for.
Related:-Check Your Eligibility for Home Loan by using the Eligibility Calculator
A decision to buy a dream house of your own is very important and a life-altering one. Before approaching to a lender, not only do you have to be adequately prepared, in terms of finances, but apart from this, you have to ensure that the conditions are correct for your home loan at Low-interest rates application to go through smoothly. Some of the factors as discussed could become an obstacle if not taken care of within time.
When you apply for a home loan, do not forget to check your home loan eligibility by using a home loan eligibility calculator that works on three parameters- Required Loan Amount, Rate of Interest and Loan Tenure. Home loan is something that you are getting into a long-term financial commitment with your eligible lender. Prior to getting a home loan, put in your best efforts and do your best to prepare in terms of getting your papers in order, getting the funds ready for the down payment. Besides this, your lender may also put you through a rigorous credit score or CIBIL Score assessment process to ensure that lending to you entails the minimum amount of risk.
So, do not forget to check your home loan eligibility before applying for a home loan.
Additional Reading:- Factors that influence your Eligibility for Taking a Home Loan
A home loan is an amount borrowed by individuals from banks or other financial institutions for construction, purchase or repair of a residential property. Lenders give the loan for a fixed period of time and charge interest on the amount borrowed, which has to be paid by the borrowers along with the principal amount. The interest rate on the loan can be calculated in two different ways – Flat interest rate and reducing balance interest rate. A flat interest rate means that the interest component on the loan will remain the same throughout the tenure. The interest will be calculated on the entire principal amount until the tenure comes to an end. It is calculated using the following formula:
Interest Payable per installment = (Original Loan Amount * No. of Years * Interest Rate p.a.)/ Number of installments.
The interest payable is generally more when it is calculated using the flat interest rate as compared to reducing balance interest rate. A flat interest rate is a gimmick by lenders to attract customers into taking a loan without making them understand about the entire scheme. Consumers who are in immediate need of money fall for such schemes and end up paying higher amounts as interest. Hence, always ask the lender about the interest rate calculation method before signing off the final loan agreement. You can also spend a little time in the calculation of the total interest payable and choose accordingly. Also, always take into account costs like processing fees when you are comparing loans from lenders.
Nowadays, transferring your home loan to another lender is quite an easy process. All the necessary information regarding your new lender is available online so that you may cross check well before transferring your current loan with them. Generally, Home Loan Balance Transfer is advisable during the initial years of your home loan taken from your existing lender, as it can help you to get a host of benefits like reduced lower interest rate for a longer duration.
However, this scheme is very common these days as it is offered by many of the banks and financial institutions. Hence you need to be very careful while going with the option of transferring your current home loan with the new lender. Make sure that you should not transfer your home loan every time you come across a lower interest rate as it adversely affects your credit score. Do a thorough cost-benefit analysis and make a smart move when you require.
However, it is not always possible that doing a transfer of your existing home loan may always prove beneficial as it is purely based on the status of your loan and economic scenario.
Additional Reading:-Reasons Why Home Loan Balance Transfer Is a Good Idea
If you need a huge amount of money for your immediate financial needs, then a loan against property (LAP) is the best alternative among all other financial options. Apart from lower interest rates, LAP also comes with a longer tenure and flexibility of usage.
In order to avail a loan against property, your minimum age must be at least 18 years and repayments have to be made before the age of 65. Banks prefer a net monthly income of Rs. 40,000 and more for salaried employees and a self-employed individual must have a net annual income of Rs. 3 lakh and above. The maximum permissible LTV ratio can range up to 70% depending on the type of property. Also, a credit score of 650 and above is considered good for availing a loan against property. Banks give loan against residential property, industrial and commercial property. Property to be mortgaged must have been constructed as per the approved map plan and must be located within municipal limits. You are also required to submit a few documents to avail LAP which are as follows: signed application form, identity proof, income proof, proof of residence, bank statements of last 6 months and business proof.
Additional Reading:- Eligibility criteria and documentation you need at the time of Loan against Property
So, if you are planning to take a loan against property make sure you fulfill the eligibility criteria of the lender and have all the required documents with you. Also, make sure you have a good credit score in order to avail the loan easily.