Find Your Dream Home at Aawas 2014 – A Budget Home Show

‘25 Lakh Mein Ghar, Ab Khushiyan Kuch Kadam Par’ do you feel excited reading this phrase and are filled with joy of getting a step closer to realizing your long cherished dream? Well this is exactly what Indiabulls Housing Finance Ltd, one of the leading private housing finance lenders in… -

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Home Loans – Vital Factors That Affect Your Eligibility

Home loan is the most preferred source for many to get funds for their dream home. Getting a loan is a systematic process and to get the funds you must meet certain requirements of the lender. Some of the important factors that the lenders consider while approving a home loan…

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CARE upgrades Indiabulls Housing Finance Limited long term rating to AAA

Indiabulls Housing Finance Ltd, one of the leading housing finance companies in India received a huge boost to its credibility and reputation as CARE upgraded its ratings for IBHFL long-term debt instruments from CARE AA+ to CARE AAA. All investment instruments with CARE AAA ratings are known to have the…

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Home Loans for Hardworking Indians

When it comes to buying a new home, several people in India consider it their biggest goal in life. The bulk of the population in the country belongs to the middle income group and struggle to get enough savings to be able to afford to buy their dream home. Most people refrain from investing in a home and also feel apprehensive about applying for a home loan mainly because they believe they need a lot of savings to be able to qualify for the loan. However, there are ways by which you can realize your dream of buying dream home and get your loan sanctioned:

Home Loans for Hardworking Indians

Early planning

Planning is the key to get your loan approved. If you have decided to avail a home loan you need to start planning well in advance. You must begin my planning your finance; consider your current income and your future financial condition and plan how you would be repaying the loan EMI. Also you need to make arrangement for the down payment. It is best advised that you start saving early as soon as you make your decision to buy your home. This would hold you in good stead to make maximum amount of down payment. 

Know the specific requirements

There are plenty of financial institutions in India that offer home loans for people belonging to low income to middle income group. Each institution has their own specific loan approval criteria and it would be best advised to do your research about the institution and their requirements to improve your chances of getting the home loan approved. The initial research will also go a long way in getting the documents in place to avoid delaying the loan disbursal process. 

Use a co-signer

One of the major reasons why the loan applications get rejected is that the applicants do not have sufficient income to qualify for the loan. If your annual/monthly income doesn’t meet the requirement of the lender you can consider applying for loan with a co-applicant. You can club the income of your spouse or your relative with your income to enhance the total income and qualify for the loan. 

IBHFL (Indiabulls Housing Finance Ltd), one of the leading Housing finance companies in India has recently launched a special campaign to celebrate the spirit of hard working Indians who constitute a large segment of the home loan customers. The campaign is basically aimed at helping the common man to make his dream of owning a home come true. If you are looking for loan, it is the best time to apply for loan with IBHFL

Indiabulls Housing Finance Celebrates the Hard Working Indian Home Loan

Indiabulls Housing Finance Ltd. (IBHFL) India’s 3rd largest Housing Finance Company has launched a new advertising campaign which salutes the spirit of the middle class who forms the major segment of their Home Loan customers.

Middle class income group constitute a large part of the Indian population and is hailed as the chief contributor to the Indian economy. It is the major force that drives the economy forward and is also the major customer segment for Indiabulls Housing Finance Limited. The company is well aware of the fact that most important dream of the average Indian is to own a home and therefore is focused on offering a range of home loan schemes at the most affordable rates in India. The loans are available for all types of budget properties and with the speedy and hassle free approval process, IBHFL empowers its customers to avail home loans for up to 30 years.

Indiabulls Home Loans

Most the home loan advertisements appearing on TV and print publications captures the human of emotions of dream and pride associated with owning a home. Also, it speaks about lower EMIs, quick approval process and the benefits of having their own dwelling. The ‘Hard Working Indian’ campaign launched by Indiabulls Housing Finance Ltd mainly focuses on reverse the normal perception of the people by celebrating the perseverance of the middle class people and their daily scarifies and struggles for realizing their dream of owning a home. 

While speaking about the campaign, Mr. Gagan Banga, CEO and MD of IBHFL, said - “Our clear focus is the middle class consumer & we have tailored our product offering to suit his specific needs. Also our service policy at Indiabulls places him at the centre, offering services like doorstep delivery, 48 hours sanction, Online Account Access etc. – it was only natural to us that our communication reflects this.”

Bhavesh Kosambia Sr. Creative director at Grey Mumbai added: “It was very clear that Indiabulls Housing Finance wanted to broadbase. The spin that we put on it was to make it a brand that appreciated & acknowledged the hard work of the common man. The Tvc takes that very thought a step ahead & applauds his effort.

The stories celebrate the hard work & sacrifice of the common man because to us these people are heroes” 

This campaign adds a welcoming stance to the brand’s positioning “Ab Ghar aa jao”. It endorses the common man’s faith in what he does to make his dreams come true.

How to Notch Up the Benefits on Home Loan Deals

If you are planning to buy a home and are looking for home loan, you must know that the initial planning process is very crucial as well as the most difficult aspect. There are plenty of things that you need to consider including selecting the right property, deciding on the loan amount before you enter into an agreement with the lender. The fate of your loan greatly depends on how you approach the financial institution. 

Once you have borrowed home loan all you need to worry about is the repayment of the monthly installments. However, you must know that the difference in getting a good home deal is that negotiating your way with the lender can get you attractive additional benefits as well as it will reduce the complications. This in turn would make borrowing an enjoyable experience. 

No matter, if you are borrowing home loan or applying for LAP (loan against property), you need to work smartly and have a proper strategy in place. This would not only give you an edge over the lender but also allow you to extract maximum benefit from your loan deal. 

Just like any other dealings, while availing home loan it is important that you stick to basics. If you do the basics rights and meet the requirements of the lender then only thing you would be left to do with is to negotiate with the lending officer and get a loan scheme that is in your best interest.

One of the most important things you need to consider while applying for home loan is the credit score. You need to maintain a positive credit rating. Besides, you must be perfectly aware of your exact requirement in term of the loan amount you need, the duration you wish to apply for and more importantly assess your future financial condition so that you are able to repay the amount comfortably. 

If you have done your research well and have got all the things in order, you can be sure of getting the perfect loan offer. Even if you don’t have an impressive portfolio, you may still get you loan sanctioned but you may not be enjoy the benefits but you would get a loan with only regular features.

Get A Rewarding Deal on Joint Home Loan

Majority of the people in India who wish to invest in real estate property invariably rely on home loans to get the required funds. If you are looking for home loans you can consider applying for joint home loan instead of opting for an individual loan.  You can apply for a home loan jointly with your spouse or with any other family member including mother, father and brother.  Apart from your family members you can apply for a joint home loan with six co-applicants. A major advantage of taking joint loan is that it only allows you to share the burden of repayment but also allows you to get a higher loan so that you can buy a better property. 

Who can be co-applicants?
You can obtain joint home loan with your parents, siblings or spouse. You can not apply for joint loan with any person, you either need to be married couple or you must have blood relation with the co-borrower. There are certain HFCs in India that allow siblings (brothers) to apply for home loan on a joint basis provided both the applicants are joint owners of the property.

Generally, the financial institutions in India do not allow friends, unmarried partners and sisters to apply for joint home loan. If you are applying for joint home loan with your spouse then the maximum loan term can be 20 years, whereas, if you are applying for children, sibling or parents, the maximum tenure is 10 years.
Documents Required for LoansThe documents required for joint home loan varies from lender to lender, however, there are certain basic documents that all HFCs consider. The documents are:

- KYC (know your customer) form- Income proof of all co-applicants- Identity and address proof of the co-borrowers- Proof of co-ownership of the property

What is the tax benefits associated with joint home loan?

Joint home loan is beneficial from the tax point of view. Under section 24 and Section 80C of the Income Tax Act, the co-borrowers can claim tax rebate on the interest as well as the principal amount repaid. 

Repayment of Home Loans

The repayment procedure for joint home loan is similar to the normal home loan. You can either pay through individual’s account or from joint bank account. You can also pay through ECS or electronic clearing system. Another alternative way to repay the loan is to share the EMIs with your partner in a way that repay the EMI for a specific number of months and the other person will pay for the balance months. 

At Indiabulls Housing Finance ltd, you can be assured of full support from our expert staff. We would guide you through the process and help you get the best deal. 

Tax Benefits on Home Loan

It is a known fact that buying a home is an expensive proposition. In the purview of the rising prices of the real estate properties, it would require huge amount of investment. In such condition, several people find it difficult to afford buying a home without applying for a home loan. It is a credit facility that comes with a cheaper rate of interest and longer repayment duration. Besides, it comes with tax benefits that make it even more attractive proposition for loan applicants. There is various tax benefits associated with home loans under different sections of the Indian Income Tax Act, the tax allowances are discussed below:

- HRA (Home Rent Allowance)

Majority of the salaried employees are entitled to get housing rent allowance under section 10 (13A) of the Income-tax Act. The tax benefit is applicable as part of the compensation structure. You can claim the HRA for living in a rented home until the construction of the property is completed and is ready to be occupied.  Once the property is ready to be occupied, HRA would be stopped immediately. 

- Tax exemption on Interest payment

Under section 24 of the Indian Income Tax Act every person who has availed home loan is liable to get tax exemption on the interest component of their loan. The tax exemption is also applicable for purchase, construction, re-construction and repair of the property. This implies that you can claim the allowance on the interest payment each month as well as on the other aforementioned costs that are incurred in a financial year. The maximum deduction you can get under section 24 on the self occupied property is Rs. 1.5 Lakhs in a financial year. 

- Repayment of principal amount

People who have availed home loan from any HFC (Housing Finance Company) are eligible to get tax deduction on repayment of principal amount. The deduction is applicable under section 80 C and the maximum amount of tax rebate you can get is Rs. 1 Lakh in a financial year. You must know that the deduction under this section is clubbed with insurance premiums, school fees, NSC (national saving certificate), EPF (employee provident fund). While claiming the tax benefit it is important to know that the deductions are valid only on self-occupied properties and not on rented properties. 

If you have applied home loans with Indiabulls Housing Finance Ltd, our executives would provide you full assistance on tax benefits. 

Loan Against Property vs Personal Loans

At some point in life, most of us might face a situation of financial emergency. It could be due to multiple reasons. During such times, the first thought is how do we raise the additional money? More often than not people rely on loans.

While availing loans for personal purpose, a lot of people often get confused whether to go for personal loan or LAP. There are several financial institutions in India that offer both personal loans as well as loan against property. If you are looking to avail funds, understanding the difference between the  features of personal loan and LAP will help you  make an informed decision. 

Individuals can avail LAP by mortgaging their property as a security cover. For personal loans, you need not have to pledge any property or there is no need for you to get a guarantor to sign the application. For LAP you can mortgage your commercial or residential property. It can even be a piece of land. 

After home loans, loan against property is the cheapest retail loan. The interest rate for LAP usually, varies in the rage of 12% to 15%. On the other hand, the interest rate for personal loan is much higher. It ranges from 16% to 21%. 

Since the rate of interest for LAP is lower, the EMI (Equated Monthly Installment) is also much lower as compared to the EMI for personal loan.

The maximum amount of loan you can get by pledging your property would depend on the market value of the property. For personal loan, the eligibility is determined by your monthly/annual income. 

A significant benefit of LAP is that it comes with longer repayment duration; it generally varies from 5 to 15 years. For personal loan, the maximum repayment duration is 5 years. 

Considering the above features it is quite evident that LAP has several benefits over personal loan. With Indiabulls Housing Finance ltd, you can avail loan against property and get up to 65% amount of your property value.

Prepayment Home Loan – what do I need to know?

A lot of people who avail home loans tend to be apprehensive about prepaying their loan mainly because of the penalty charges associated with it. Most of the housing finance companies in India levy a penalty charge on prepayment of home loan; the charges usually range from 1% to 5% of total loan amount. The penalty charges on home loan prepayment are higher in private banks than government banks. 

Recently, the NHB (National Housing Bank) issued a notice to all the HFCs in India to ban the home loan prepayment charges. The ban is levied on both floating rate interest loans as well as fixed rate interest loan schemes. If you are planning to prepay your loan, you need to remember the following tips:

Negotiate with the bank

Before you transfer your home loan to prepayment loan, you need to explain the reason to your lender why you want to repay the loan beforehand. If you find the EMI or the interest rate is too high for you to afford, you can negotiate with the lender to get extension in the repayment tenure or reduction in the EMI rate. 

Switching your Interest rate scheme

Depending on the housing finance company you choose to avail your home loan, you may get the opportunity to switch your interest scheme. If you have availed loan on fixed interest rate basis and finding it difficult to repay, you can switch to floating interest rate scheme. The floating rate is usually, 1 to 2 percent cheaper than fixed rate home loan. 

Prepay partially

If you have budget constraints for full pre-payment and the penalty charges is too for you to pay, then it is best advised to negotiate with the lending institute about partial prepayment. Most of the HFCs in India allow borrowers to prepay maximum of 25% of the total loan amount. 

If you have availed home loans from Indiabulls Housing Finance Limited, you would not need to pay any pre-payment charges, not matter if you are making partial or full prepayment. 

Preparing to take Home Loan – What steps should I take?

Majority of the people today need a home loan to buy a property of their choice. Unlike a few years back when the prices of the real estate properties were not costly, one could have managed to purchase a property with their own savings. Today, however, in the purview of the rising cost of properties most of the salaried people find it necessary to avail home loan.

If you have decided to buy a residential property, you need to have a proper plan in place and make certain preparations before procuring home loan. You need to get all the documents ready related to the property you wish to buy well in advance before you approach the housing finance company. Apart from the home documents, you need to submit your personal profile including the details of your permanent and current address, family background, age, income details. All these piece of information would be required by the housing finance company.

The lending institutions in India carefully evaluate the documents that reflect your source of income as they use it as a yardstick to determine the maximum amount of loan you are eligible for. If you are a business owner or if you a self-employed professional, you need to provide details of your business profile, nature of business, and statement of accounts for the last 6 months, copy of income tax returns filed for past 3 years and copy of form 16.

Scrutiny of application form by the housing finance companies

When you submit the home loan application to the lending institution, the lenders initiate a process to scrutinize the documents submitted by the borrower. The lending institution usually appoints a special team to validate the authenticity of the documents. Once the lender confirms the documents, the officer in charge responsible for sanctioning the loan decides on the loan amount that would be forwarded. 

Once the housing finance company approves the loan, you would need to submit the original documents related to property and memorandum of home loan. When you submit the documents, the lender would issue you a cheque for home loan.

What should you ask the lender?

Before you sign on any document it is important that you ask the lender about the rate of interest, the nature of interest (if it is fixed or floating), what is the processing fee, if there is any penalty for prepayment or late payment of the EMI. You must also ask the lender if there are any hidden charges involved. 

If you follow the above guidelines the process of availing home loans would become much easier for you. Not to mention, if you are availing home loans from Indiabulls Housing Finance Ltd, you can be assure of full support from our team. 

Golden Rules to Remember While Selecting the Right Home Loan Provider in India

Investing in a residential property is probably the biggest financial decision one makes in his/her life time. Since buying a home involves putting in plenty of your hard earned money, it is only fair that you do your research well to choose the best home loan provider. There are plenty of lending institutions in India that offers home loan schemes but it is important that you do your research well to choose the best one that suits your needs.
 

Considering the following rules will greatly help you to make the right choice:

Research is the key

Oftentimes, people tend to make a hasty decision in choosing the housing finance company purely based on their market reputation or through word of mouth advice. However, you must do your research well about the reputation of the lender and check if their performance in the industry. It is vital that you take your time to list down the desired qualities of a good loan provider. 

Best interest rates

The rate of interest is certainly a key aspect to consider while selecting home loan lender. A good housing finance company would voluntarily offer you discount on the home loan package. Even a slight reduction in the interest rate would significantly reduce your liability. 

Pledge full support

One of the important traits of a good housing finance company is that they would assure full support for all your queries relating to loan as well property purchase. Also, you can clearly distinguish a good lender from the ordinary ones based on how they follow-up with your application. 

Personally visit the office

You can do all the research you want online but it is best advised to personally visit the home loan company’s office and get a firsthand experience of their services. Besides, this will help you establish a rapport with the lending officer.

Disbursement of loan

It is important that you find out with the lender about their loan amount disbursement process. You need to ask them if they would disburse the amount based on your gross salary or net salary. Also, you must ask them if the amount would be deposited in your account or forwarded in cash. 

Repayment flexibility

This is another important feature that you need to consider while choosing the best home lending institution. A good lender would never force you to accept a repayment method on the borrower; instead he would lay out all the possible options in from of you and let you decide what is best for you. 

Keep these rules in mind always to choose the best lender. With Indiabulls Housing Finance Limited, you can be assured of best services. 

Benefits / Advantages of buying LAP Online

The advent of internet banking services has completely transformed the way people carry out their banking transactions. It is no doubt that internet has made banking easy and quick.  It also offers plenty of options while looking for home loans for loans against property. Before applying for loan it is vital that you do your research and stay updated about the latest loan schemes. If you are looking to get the best deal on loan against property, understanding the pros and cons of buying loans online would help you make an informed decision.

Benefits of shopping for LAP online:

Time Saving

The biggest benefit of applying for LAP online is that the online process is simple and can be completed quickly. You need not have to visit  various housing finance companies personally; you can browse through the loan schemes offered by different lending institutions from the comfort of your home.

Gives you flexibility

The office of financial institutions have specific working hours, however, if you are applying for loan against property online, you can get the required information any time you want. If you find it difficult to visit the lender’s office due to hectic schedule, you can do your research about loan and apply for the same online even when the office is closed.

Multiple  options

There are several financial institutions out there in the market that offer loan against property. By applying online you can browse through the various schemes, compare the interest rates, check the repayment terms and get the best deal to suit your needs.

Lower Fees

This is another significant benefit of applying for loan against property online. When you apply for loan online the lender fees is comparatively lesser than the fee applicable while applying offline.

Quick approval

Today, several people prefer applying for loan against property online because they get quicker feedback from the lender. Typically, the financial institutions approve the online application faster.  

Wise Decision

When you visit the office of the lending institution for LAP an expert marketing professional would try his/her best to accept their loan offer. However, if you apply online, you can do your own research compare different quotes and make an informed decision without any pressure.

Shopping for loan against property online can be hassle free, time saving and convenient if you avail home loan from Indiabulls Housing Finance Ltd. You can visit our website www.financial.indiabulls.com to know more about LAP schemes. 

Home Loans – Dos and Don’ts

In the last decade there has been a significant rise in the number of new financial institutions that have come up in India. In such circumstance availing home loans has become easier than ever before. With the easy availability of funds, the mindset of the people has also undergone a change. They don’t rely on their savings to buy or build home; instead they rely on the financial institutions for home loans.

Getting a home loan to buy your dream home is one of the most important decisions you would take in your life and you need to put a serious thought behind it. There are different things that you need to consider, the following dos and don’ts will greatly help you:

Do’s
It is important that you pay your EMIs on time; any delay in the repayment would have its repercussion on your overall credit rating. If you have a bad credit score it would affect your future financial transactions.

Make a list of the dues you owe and prioritize the payoff. Make sure that you allocate sufficient funds to pay off your loan installments and credit card payments.

If you have more than one loan, payoff the larger mortgages first. This would help you replace the high  interest rate debt with home loans of lower interest rate.  Also, you may get tax deduction on the interest  amount.

It is best advised to start saving well before you avail home loan. This would significantly help you make a larger down payment upfront and reduce the burden of home loan repayment later on.

The amount of loan you get depends on the evaluation of the property appraiser. It is therefore essential that you keep your home clean and carry out some basic repairing work. This would boost up the loan amount.


Don’ts
Don’t spend extravagantly on buying anything other than absolutely necessary items for a few months after availing home loan. You must try to repay the loan as soon as you can.

Don’t forget that home loan is a huge responsibility that you need to oblige. Any delinquency on the repayment would affect your credit rating. Not to mention your credit amount may increase higher than you would image.

Don’t apply for a bigger home loan than your actually need.

Don’t rush into singing any loan offer. Take t your time to consider the various options and choose the one that best suits your needs.


If you are availing home loan form Indiabulls Housing Finance limited, you need not be worried about anything. We have expert executives who would work closely with you though out the process and ensure that you get the best home loan deal. 

5 Reasons to opt for Joint Home loan

Over the past few years, the price of real estate properties has increased considerably as compared to the increase in the salary of an average person. Nowadays, with the growing popularity of joint mortgage loans, majority of the people apply for joint loans. Even the housing finance companies are happy to offer joint loan. Top five reasons to opt for a joint home loan are discussed below:

Joint ownership of the property

Getting a mortgage loan is a big responsibility and some people find it overwhelming to carry the burden alone. If you opt for joint home loan or mortgage loan scheme it becomes easier to handle the loan repayment as you would have someone you trust to share the commitment.

Preferred location

When you opt for a mortgage loan jointly with your husband, spouse or partner you would become eligible for higher loan amount. Today, several people apply for joint home loans with their brother, sister and other family members to raise their loan amount. This would allow you to buy property at the location of your choice.

Bigger deposit

It is quite natural that if you have more than one person to save up for the down payment you would be able to pay higher amount. Getting the minimum amount required for down payment becomes easier as the income of two people is combined together. By increasing the deposit money, you can borrow more to buy a better, bigger home.

Increase the loan amount

When you combine the income of 2 people together, the housing finance company would be able to offer you to larger sum of money. Joint mortgage loan would help you buy a larger property or a property with better amenities like an additional room. This gives you the opportunity to rent out the additional room to recover the mortgage cost. 

Be a property owner

Financial research reports suggests that over the past couple of years there has been a significant increase in the number of youngsters who want to own property . Joint mortgage loan facility makes it easier for them to accomplish their dream of being a home owner. 

While availing any credit or loan facility with somebody, you must know that all joint financial commitment is a serious responsibility as both of you would be equally responsible for repayment or liability of the property. It is therefore advisable that you have a joint legal agreement to cover up for eventualities such as job loss, job change or separation.

If you are planning to apply for home loan, it is advisable that you consider the benefits of joint mortgage loan to get a better deal.

Five Proven Tips to Save Money on Mortgage Loan

People need finance for a number of reasons, to meet business expenses, pay for medical bills, for education etc. All these expenses require a large amount of money and majority of the people don’t have sufficient savings to meet these expenses. In such circumstances, it is best to avail credit or loan facility. While you have the option to avail personal loan, it is best advised to opt for a mortgage loan. If you own any assets like residential property, you can pledge it against the loan. 

Loan is a big financial responsibility and as a borrower you would definitely want to save on your loan deal.  Even a small amount of saving would have a huge impact on your credit. Below mentioned are a few proven ways to save money on mortgage loan. 

Improve your credit score:

The credit rating of the borrower is one of the important factors that the housing finance companies consider while approving the loan application. The higher your credit score, the better your chances of qualifying for a loan with lower interest rate. Before you apply for home loan or loan against property improve your credit rating. Try to pay off your outstanding dues and reduce the credit card usage.

Don’t apply for bigger loan than you need

This is the easiest way to save on your mortgage loan. The lesser the principal amount, the easier it would be for you to repay. Additionally, having a extra bedroom or luxurious amenities like a swimming pool or sauna would not only increase the loan cost but also it would increase the home maintenance cost. 

Opt for pre-approved project

When you apply for home loan it is best advised to go pre-approved projects as it would help you get great savings on your loan deal. You can bargain on your deal with the property owner as well as the real estate agent and lower the property price. Make sure that you have a good bargaining strategy in place. 

Make a higher down payment

The larger the amount you pay upfront for the property the lesser would be the loan principal amount. The smaller the loan, the cheaper it is. Majority of the housing finance companies require you to pay at least 20% of the property price upfront, however, if you can afford it, do make a higher down payment.

Have a repayment strategy in place

Some people save some money every month to make 13th installment payment for their home loan, while some others pay more money in their monthly installment. No mater, the kind of strategy you adopt, the focus must on repaying the loan as soon as you can. This will help you save on your interest payment. 

You can all the above mentioned tips together to increase savings on your mortgage loan. If you are availing home loans or mortgage loan from Indiabulls Housing Finance ltd, the affordable interest rates and flexible repayment options makes it easier for the borrower to repay the loan.  

Home Loans - A Lenders Perspective

Owning a home is one of the biggest goals of a person in his/her life. Buying a home is certainly the most important investment decision a person would take in their lifetime. A large number of Indians rely on mortgage or home loans to realize their dream of owning a home. Just like the loan borrowers do their research on lending institutions, the lenders to carry out a background check on the borrowers in terms of their current financial condition, past credit history, monthly income and their repayment capacity. In order to avoid your loan application from being rejected let us look at what are the parameters the lenders judge the borrowers by.

What do lenders look for in loan borrowers?

The housing finance companies in India primarily look for two factors while approving home loan applications. The first and most important factor is Profit and the second factor is the ability to repay the amount availed. While availing home loan, you must know that the housing finance companies too are like any other business and their main motto is to earn profit. The lenders ensure that they get profitable returns on their investment by checking the financial status of the borrowers and ensure financially sound to pay back the money. 

Why is important to maintain good credit history?

Credit history is one of the crucial factors that the housing finance companies consider for lending home loans. This is because your credit score says a great deal about the kind of borrower you are.  It gives the lenders a fair idea about your financial credibility. The lending institutions use the credit score of the borrower as an industry standard to accept or reject their applications. Majority of housing finance companies in India require you to have a minimum score of 620 to qualify for home loan. Hence, if your credit score is below 620 there is a great chance that your home loan application gets rejected. Even if you get your loan approved, you may have to pay higher interest than others who have a good credit score.

Apart from the financial status and the credit history of the borrower another vital factor lenders consider is documents related to the property. No matter if you are applying for home purchase loan or home construction loan, you need to have all important documents related to the property ready to avoid delay in loan disbursement. Moreover, if you are applying for home construction loan, you need have the approval from appropriate civic authorities. The lenders appoint a special team to assess the credibility of these documents before sanctioning the loan. 

Thus, while availing home loan from any housing finance company it is important that you think from the lenders perspective as well to know what are their requirements and proceed accordingly. If you are availing home loan from Indiabulls Housing finance limited, rest assured you would get full support from our executives. 

Benefits of Availing Joint Home Loan

When people look for home loans, one of the most important question they have is, whether to take a loan individually or apply for a joint loan. A joint home loan as the name suggests is taken by two people together. In today’s time when the prices of the real estate property are skyrocketing, availing joint home loan is a wise thing to do  to own a home.

In present times, joint home loans are becoming extremely popular among Indians as majority of the individuals find it difficult to afford repaying the loan. Also, in various cases individuals find it difficult to get sufficient amount of loan required to buy the property of their choice. In such circumstance, it is best  to apply for joint home loan. You can apply for a joint loan either with your spouse or any other relative. This has various benefits over loans applied by individuals. The top benefits are discussed below:

•    You can  borrow more money
When you apply for a home loan, the housing finance companies consider the income, employment status, financial credentials and credit history of the applicants. The total amount of loan the lender approves will be based on these factors. Also, the lenders approve loans based on their assessment of your ability to repay the loan. It is quite obvious then that your income and financial credentials would  improve if you are applying for home loan on joint basis. When you apply for loan jointly, the lenders would consider the income of both the applicants, making you eligible to borrow more money.

•    Tax benefit
The home loan tax benefits that are applicable on home loans under section 80 C and Section 24 of the Indian Income Tax Act is extended to both the partners. Under these sections, each borrower is eligible to get a maximum deduction of Rs. 1 Lakh and Rs. 1, 50,000 on the principal amount and the interest payable on the loan. Thus, in a joint loan scheme, you would get a total deduction of Rs. 2 lakhs on the principal amount and Rs. 3 lakhs on the interest amount.

•    Easy repayment
The re-payment process for joint home loan is similar to loans availed by individuals. Even though two people apply for the loan, the housing finance companies do not accept two cheques for the same EMI. You can make your payment through your joint bank account. Also, the joint loan eases the burden of EMI on individuals; you can either share the number of EMIs among yourselves or contribute equal amount every month towards repayment.
Thus, it is quite obvious that a joint home loan has many benefits over loans for individuals. If you are availing home loans from Indiabulls Housing Finance Limited our expert executives would help you understand the various benefits and guide through the various process of availing joint home loan.

Comparing Home Loans: Who Offers the Best Deal?

Today, owing to the increasing demand for home loans, the housing finance companies in India offer different home loan schemes to suit the needs of the individuals. If you have no prior experience dealing with housing finance company, it is vital that you compare the different loan deals before making your final decision. While comparing the deals it is  important that you do a fair comparison

One of the major mistakes that most people commit while comparing home loan deals is that they compare the deals of different tenure; however, this would not give a clear picture. Also, if you compare fixed interest rate home loan with floating interest rate home loan schemes, you would not get a realistic picture. While comparing different home loans schemes, you need to remember the thumb rule, i.e. compare the loans with similar interest rate and duration.

Another important tip to remember before you sign up for any home loan deal is to look at the total cost of the loan. You must carefully consider the various fees and charges. The housing finance companies have different fees with different labels. One housing financing company may charge a higher processing fee but provide some subsidy.
While deciding on the best home loan scheme it is important that you don’t make your decision based solely on the lower interest rate. A low rate of interest doesn’t necessarily mean that you get the best deal; you need to compare the terms and conditions of the deal. The interest rate may be low for the first few years but the interest may be much higher after that. Make sure that you get full information about the loan before you sign the papers.

If you are a first time buyer, make sure that you consult a financial expert to know about the various technical terms. Also, consulting your friends and relatives who have availed home loan before can help you get some valuable advice and information about getting home loan. Being informed and updated about the latest trends and market structure is the key to get the best deal. Since home loan is one of the most important decisions you would take in your life make sure that you take your time and take a wise decision so that you don’t regret it later.

If you are availing home loan from Indiabulls Housing Finance Ltd. you can get all the necessary information you would need on our website. You can use our loan tools to check your eligibility; the EMI calculator would give you accurate information on how much you would need to pay every month. Not to mention we have the best advisors who would help guide you through the entire process.

How to Effectively use Home Loan EMI Calculator

The prospect of buying a new home always sounds exciting but when it comes to choosing the right lending institution for housing loan they find it to be a tedious task. The home loan equated monthly installment or EMI becomes a major concern for the borrowers. If you do not have any idea about how to manage your EMI, using the EMI calculator would greatly help you. It is a fantastic tool that allows you to the exact amount you would need to pay each month. You can use the tool to calculate the interest applicable on your loan.

If you wish to apply for home loan, it is advisable that you plan your monthly budget well in advance before submitting your loan application. This would not only help you get a clear picture about your finance but also you would be able to know how much money you can afford to spend on your home loan. You can use the EMI calculator to plan your budget in a better way without compromising on your expenses for the future.

With the growing use of EMI calculator, budgeting has become simpler than ever before. You can use this wonderful financial tool from the comfort of your home to know everything about the monthly repayment amount. One of the important things to know about using EMI calculator is that although this tool is easily available online, using it doesn’t guarantee your loan approval. Another important thing to about this tool is that it would not provide any information about your credit ratings, which can become a crucial factor in getting your home loan approved.

The EMI calculator is a must use tool for all home loan borrowers. It provides you with all the information you would need to spend your money wisely on buying a new home. Apart from knowing the exact amount repayment amount, you can also use the tool to compare the different quotes and get the best loan deal in quick time.

If you are availing housing finance from Indiabulls Housing Finance Ltd, you can use the EMI calculator available on our website financial.indiabulls.com. You can also benefit from the expertise of our financial advisors who would guide you on using the EMI calculator

Knowledge Series : Loan against Property

We all need money for a variety of purposes right from funding your business to pay the fees of your child’s education. In case of a financial emergency, the most obvious question you would ask yourself is how and from where I would get my funds from to meet the sudden expenses? Today, one of the easiest ways to get funds is to avail a loan. If you own a property, you can use it to your advantage and get loan against property (LAP). 

If you don’t have any prior experience taking loans, you would want to understand what exactly is loan against property. It is essentially a loan that is disbursed by the financial institution against the property you wish to mortgage. The property you mortgage can either be a residential or a commercial property. It can be either be self-occupied or rented out to somebody else. 

Most of the leading housing financial companies in India like Indiabulls Housing Finance limited offer LAP. It is essentially a long term loan and is given for a period of 10 years or more. You can use the loan amount to meet your immediate financial requirements like consolidating your debts, funding your child’s marriage/education or investing more capital in your business. 

One of the main reasons why people opt for LAP rather than personal loan is that the loan duration is higher, the interest rate is competitive and more importantly you do not need to specify any reason to the lender. Before applying for LAP make sure that you do your research well about the lending institution in terms of the rate of interest, repayment terms, tenure and other related charges. Initial research would go a long way in helping you get the best loan deal. 

If you are availing home loan from Indiabulls Housing Finance Limited, you would  receive all the  assistance and information you need to make your loan availing experience easy and happy.

Applying for a Home Loan? Know the tax benefits associated with

Buying a home is one of the most important decisions one would make in their life. It is a dream for many to own a home. In the purview of the rising prices of the real estate property in India most of the people find it difficult to pay for their home out of their own pocket. Therefore, most people approach financial institutions like banks or private housing finance companies to make their home buying process easy. One of the obvious reasons why people take home loans is that the financial institutions provide a major proportion of the funds to buy their dream home. Another significant reason why people avail home loan is that it allows them to get tax benefits under the section 24(b) and section 80C of the Indian Income Tax Act, 1961.

Section 24(b) of the income tax act deal with the ‘Interest’ component of the home loan, whereas section 80C deals with the ‘Principal’ component of the loan. The maximum amount of tax deduction you can avail in one financial year is Rs. 1 lakh and Rs. 1.5 lakhs on the principal and the interest amount you repay.

If you are applying for home loan with a co-applicant you can enjoy joint home loan tax benefit. The tax deduction would be applicable to all the people involved in the loan. An important thing to know about the home loan tax deduction is that your deduction would depend upon the proportion of the loan you have availed. For example – if two people are applying for the loan in the ration of 3:2, then for the loan amount of 50 Lakhs would be spilt in the ratio of 30 and 20 lakhs. While calculating the tax deduction, the respective principal as well as the interest amount would be taken into consideration.

Another important benefit of applying for home on joint basis is that the lender would consider the income of both the applicants, which increase your loan eligibility. This in turn also maximizes your tax deduction. If you wish to buy a home that is under construction, then you can claim your tax deduction only after the completion of your home. If you want to rent out your home, then you would have to pay taxes on the amount of money you receive as rent. Getting a home loan is definitely a great benefit for your tax planning.

If you are availing housing loan from Indiabulls housing finance limited you are liable to get tax benefit under section 24(b) and section 80C of the Indian Income Tax, 1961. If you have any queries about the tax benefits, the loan executives at Indiabulls are always there for your help. We ensure that all your queries are answered and your loan application becomes simple.

Indiabulls Housing Finance – Leaders in Affordable Housing Finance Sector

Mr. Gagan Banga
M D & CEO
Indiabulls Housing Finance

Indiabulls Housing Finance Limited, one of the leading housing finance companies in India has ambitious plans to grow by 24 to 25% each year in the affordable housing finance sector. Mr. Gagan Banga, MD & CEO, Indiabulls Housing Finance Ltd, in his recent interview in Financial Express said that the company aims to focus on lending affordable home loans to the low risk customers.

In the interview he stated that affordable housing loan is their sweet spot and that the company aims to reach out to people who have an income of Rs. 75,000 to Rs. 1, 25,000 per month. He further stated that in the last 8 years IBHFL has built a good skill set in lending to the self-employed people. Today, nearly 30% of the Indiabulls home loan borrowers belong to the self-employed category and the remaining percentage are the salaried customers.

On the major trends in the Housing Finance sector, Mr. Banga said that the mortgage industry is growing at a slightly better pace than bank credit and within that the housing finance companies are growing at a better rate. Over the last six years the housing finance companies share has increased to 45% from 35% in the mortgage pie. Owing to the rising salaries of the entry level employees there is a phenomenal growth in the affordable housing loan segment. Mr. Ganga Banga said that since the growth in housing loans for properties that cost more than Rs. 2 crore is rather slow, most of the housing finance companies are focusing on the affordable home loan category.

Looking at the trend, over the past few years, Indiabulls Housing finance Ltd has been consciously concentrating more on the affordable housing sector than other segments because this segment has been giving reasonable returns. Mr. Banga feels since the return is good from the sector there is no need to do many things at a time. Over the next 10 years more self-employed people would apply for Home Loans and IBHFL’s expertise in this sector will help them grow at a steady pace

Important Facts to Know About Tax Benefits on Home Loan

Majority of the people in India who decide to buy their own home approach a financial institution for availing home loan. Usually, people depend on the loans to get a major portion of the finance for their home and the amount is a big sum. Just like other finance transactions there is certain tax implications related to home loans. The government of India tax benefits to all who avail home loan to reduce the burden of buying their dream home. If you are a first time borrower of home loan, you need to be aware of the following fact relating to the tax benefits:

• As per the Income Tax Act of India, 1961 both the principal as well as the interest components of home loan are subject to tax exemptions. If you have taken a home loan to either buy a new home or to construct home, you can file for tax benefit under the section 24(b) of the Indian Income Tax Act.

• You must know that there are certain limitations on the tax benefits you get on your home loan.  The maximum deduction you can get on the interest component of your home loan is up to 1.5 lakhs if the loan was availed on or after 1st April 1999. If you have taken a home loan, you need to buy or finish building your home within 3 years from the year in which the loan was availed to be eligible for the tax benefit.

• Under section 24(b) you can avail tax deduction on home loan even if you have borrowed funds from your relatives and friends. Whereas under section 80C of the income tax act, you cannot get tax benefit on loans borrowed from friends and relatives.

• You can avail the tax exemption on your home loan only if you continue to pay your monthly installments on a regular basis. If you fail to make you EMI payment on time, you cannot avail tax benefit on the amount you failed to pay.

• The maximum amount of tax benefit you can get on the principal component of your home cannot be more than Rs. 1, 00,000 under section 80C of the Income Tax Act. 

• As per section 80C of the income tax act, the tax deduction on the principal portion of your home loan is not applicable if you have availed loan for repair, reconstruction or renewal of your home property. On the other hand, the tax deduction on interest component of home loan under section 24(b) is allowed even for the loan taken for carrying out reconstruction, renewal and repair purpose of your home.

If you are availing home loan from Indiabulls Housing Finance Ltd you would be entitled to get tax exemption to the tune of Rs. 1,50,000 (maximum amount) on the interest component of the funds you have borrowed. Also, you can get a maximum tax deduction of Rs. 1, 00,000 on the principal amount that you repay towards your home loan

Knowing the Different Types of Home Loans in India

Over the past few years, the demand for home loans in India has increased tremendously. Everyday a large number of people apply for home loans to buy their dream home. The housing loan lenders in India provide home loan scheme not just for purchasing home but also for a variety of other related purposes to cater to the different needs of their customers. Some of the popular types of home loans available in the home loan market are discussed below:

Home Purchase Loan:
This is the most popular and commonly availed variant of home loan. You can avail home purchase home loan to get funds for buying a new residential property of your choice. If you are applying for this type of home loan, you must know that most of the housing finance companies in India provide a maximum amount of 85% of the actual market value of the property. The home purchase loan is usually given at fixed or floating interest rate. If you are availing home loan from Indiabulls Housing Finance Ltd you can get home loan only on floating interest basis.

Non-residential Indian home loans:
As the name suggests, this is a special variant of home loan that is meant only for the non resident Indians. The housing finance companies in India have developed NRI home loan schemes to help the NRIs to buy residential properties in India. The formality for availing this type of loan is pretty similar to usual home loan schemes that are offered to the Indian residents. Today, almost all the public and private sector banks and financial institutions offer NRI home loan. At Indiabulls Housing Finance Ltd we assist you at every step of the loan process to help you make your home buying experience a happy one.

Home Improvement Loan:

This type of home is availed mainly by people who already own a home but require funds to improve or renovate their home. You can use the funds to carry out repair works such as plumbing work, waterproofing, and electrical work, external and internal painting work.

Home Construction Loan:
This type of home loan is availed by people who wish to build or construct their own home according their needs. The application and approval process for home construction loan is slightly different from the common home loan. One of the important criteria for availing home construction loan is that the land on which you wish to construct your home must have been purchased within one year so that the cost of the land is also included in the total cost of the property.

No matter the kind of home loan you wish you apply for, it is best advised to do your research well about the lending institution to know if they are offering the scheme. At Indiabulls you would get NRI, home purchase loan and loan against property at the best interest rate.