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

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. 

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.

Prepaying Home Loan – Benefits

Buying a home is a cherished dream for a large number of Indians and most people take home loan to accomplish this dream. It is quite a fascinating irony about home loan that anyone who aspires to buy home he/she want to avail home loan at the earliest. However, once the person gets the loan, the first priority in his/her life is to repay the loan. If you have availed home loan, prepaying the amount would be one of the most crucial decisions you would make in your life. 

Some of the important pros of repaying the home loan before the actual duration are discussed below:

• One of the most important benefits of prepaying the home loan is that you get cutoff on your interest payment. Not to mention, prepaying home loan would also result in quick reduction of your outstanding principal amount. This in turn, leads to the reduction of the interest accrued on the loan account. For instance, if you have availed home loan for Rs. 10 lakhs at the interest rate of 10%, you would be required to pay Rs. 1 Lakh (approximately) interest per year. If you prepay the loan by Rs. 1 lakh, your interest would reduce from Rs. 1 lakh to Rs. 90 Thousand. Thus, you would save Rs. 10 thousand every year for the whole duration of the loan. 

• If you wish to prepay your home loan, the housing finance companies generally give you two options. You can either reduce the number of installments you pay or you can reduce the monthly installment amount but keep the number of installments same. For example, if you want to prepay your home loan by Rs. 1 Lakh, you can opt for one of the following options:

a) If your original EMI payment is Rs. 10,000 for 120 monhts, you can reduce the tenure to 110 months and continue to pay Rs. 10,000 per month. 

b) You can keep the original duration as 120 months, but reduce the monthly EMI amount to Rs. 9,500. Thus, you get a saving of Rs. 500 every month.  

Most of the financial experts suggest the home loan applicants to opt for the second option because it helps the families to lessen their monthly cash outflow and ease the budget. The cash you save every month can be further used to prepay the loan. 

Indiabulls Housing Finance Limited is one of the leading housing finance companies in India that offers wide range of home loan schemes to suit the budget constraints of different individuals. If you have availed home loan from Indiabulls on floating rate basis, you would not need to pay any prepayment charges for full or partial pre-payment. However, if you have availed a loan on Dual interest basis (fixed and floating) you would have to pay 2% prepayment fees for prepaying any amount during the fixed interest period.

Basic Home Loan Terms You Must be Aware Of

Every month a large number of Indians apply for home loans. However, not many people are aware of the basic terms associated with home loans. If you are planning to apply for home loan, you must be aware of the certain important terms that are discussed below:

1. EMI (Equated Monthly Installment)
EMI refers to the amount of money the home loan borrower needs to pay each month to the lender as part of the repayment process. EMI amount includes both the principal amount as well as the interest. The amount you pay as EMI remains constant during the entire duration of the loan. For instance if you have availed a home loan for 5 years with an EMI for about Rs. 4,500, you would have to pay this amount to the home loan lender for 60 months. 

2. Down Payment
The housing finance companies usually lend only about 80 to 85% of the actual value of the property. The remaining or the balance amount has to be funded out of your own pocket. This amount you pay for the property is known as down payment. You need to pay the down payment upfront before applying for home loan. 

3. Sanction Letter
It is a letter issued by the housing finance company to the home loan applicant stating that his/her application for loan is approved. The letter contains the terms and conditions of the loan including:

• The total amount of loan sanctioned
• The rate of interest applicable 
• Type of interest – variable or fixed interest
• Duration of the loan
• Monthly installment amount (EMI)
• Details of the loan scheme (if the loan is offered under any special scheme)

4. Processing Fees
This is a fee that you need to pay to the lender upfront while submitting your loan application form. As the name suggests, it is a fee taken to process your application. 

5. Acceptance Letter

This is a letter sent by the loan applicant to the housing finance company. Usually, the applicants eagerly wait to fill this letter up. When you receive the sanction letter from the lender, you need to send them an acceptance letter stating you are willing to accept the loan offer. You need to send this letter within 1-3 months from date of receiving the sanction letter. 

6. Administrative Fee

This is a mandatory fee that home loan applicants have to pay to the lender. Generally, this fee is non-refundable and the amount you pay would vary from lender to lender. Generally, it is about 1-2% of the loan amount you apply for. 

When you apply for home loan with Indiabulls, we assist you to understand all the important terms relating to home loan and provide the right guidance to avail home loan. 

Knowing the Different Types of Home Loan Interest Rate

No matter if you are looking to buy your first home or looking to move into a bigger home, availing home loan could be your best deal to meet your financial needs. The financial organizations that lend home loan charge a certain percentage of interest on the amount funded. If you are a first time home loan borrower, it may be difficult to decipher the significance of different types of interest rates. The types and significance of different kinds of home loan interest are discussed below.

Home interest rates are broadly classified into two types, namely fixed interest rate and adjustable/variable home loan. 

1. Adjustable interest rate:

This type of home loan interest is also known as variable interest. When you avail home loan, the interest is usually fixed for a certain period then in the long run you may have to repay the monthly installment as per the prevailing interest rate in the market. A major benefit of opting for adjustable rate home loan is that the interest rate during the initial period is much lower as compared to fixed rate home loan. 

If you are looking to avail home loan, it is best advised that you do your research well and apply for loan at a time when the interest rate is low. Lending institutions, like Indiabulls Housing Finance Ltd offer attractive schemes. You can contact the Indiabulls executives to know about the interest rates. 

2. Fixed Rate of Interest:

Majority of the people who avail home loan opt for fixed interest rate loan since the interest amount is fixed for the full tenure of the loan. Fixed-rate home are further classified into 2 types in accordance to the loan tenure. 

• 15 year home loan

This type of loan is ideal for people who have a decent income and wish to repay their loan within a shorter period. The interest amount for this kind of fixed rate home loan is considerably lower than the 30 year old home loan. 

• 30 year home loan

This type of fixed rate home loan gives you the opportunity to avail home loan for a longer duration. People usually consider this type of loan more affordable as the monthly installment is lower than the 15 year loan. The lower monthly installment makes it easier for you to repay the loan.

While Indiabulls Housing Finance Ltd does not offer home loans at fixed interest rate, you can find a wide range of home loan offers to buy your dream home. With Indiabulls you can be sure to get personalized loan to suit your needs.