Offloading Your Home Loan Liability Sooner

Whether you are buying a mid-sized house or a premium property, chances are high that you would take a home loan. The best time to take a home loan in India is while you are still young, so that you can pay off your home loan by the time you retire. In all probability, if you are a salaried employee or a self-employed professional, you wouldn’t like to carry the burden of your home loan for too long. There are several ways in which you can pay your housing loans faster so that you can focus more on enjoying the comfort of your home rather than enduring the headache of paying off your home loan.
For example, if you are going in for a property in an upscale area in one of the metros, you could end up taking a home loan of as much as Rs 25,00,000. If the tenure is 15 years at an interest rate of 8.40%, then the equated monthly instalment or EMI would work out to Rs 26,366. Just think for a moment. Carrying a burden of paying back an EMI of Rs 26,366 for 15 years would give you many sleepless nights. However, not necessarily if you are one of the many highly paid young professionals whose yearly income runs into crores. Even under such circumstances, you would like to look into ways in which your EMI liability could be paid off faster.
There are at least four ways in which you can reduce your EMI burden faster. The first is you can pay a higher EMI. This allows you to get rid of your principal faste, thus saving you the burden of paying interest rates for a longer time. The second option is going in for a partial pre-payment. This gives you twin benefits as this reduces the principal amount and also offers reduced interest rate with the passage of time.  The third option is to increase your EMI with the increase in your income. This option enables you to channelise your surplus faster by paying back your EMI faster. The fourth option is to transfer your loan to a NBFC which charges a lower interest rate. In this case, a NBFC transfer fee may be applicable, and there might also be a processing fee.
At Indiabulls Home Loans, the process of availing or transferring a home loan has been made easier by many useful tools. With the simple Home Loan EMI Calculator, you can calculate the EMI that you will be required to pay for your home loan. This housing loan EMI calculator will thus help you approximate your financial requirements based on your home loan amount, home loan tenure and home loan interest. With the Housing Loan Eligibility Calculator, you can calculate your home loan eligibility. It will help you to calculate the amount of housing loan that you are eligible for, based on the housing loan tenure and housing loan interest.
With the Tax Benefit Calculator, you can determine the tax saving opportunity that one can be eligible for on their home loan. Every principal and interest payment made against your home loan can be claimed for deductions in your income tax. Stamp Duty is the tax placed on your property documents during the sale or transfer of the property. It is levied across India at different rates. With our stamp duty calculator, you will know the exact amount that you will be required to pay as stamp duty in any state or city.
At Indiabulls Home Loans, you can initiate home loan balance transfer to avail lower interest rates, save more with lower EMI’s, or even top-up on your home loan amount. You can also avail balance transfer on Loan Against Property.

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Charting the Route to your Plot of Land

If there is one dream common to most people around the world, it is to own a house, preferably standing on a plot of land. While living in apartment complexes have many advantages, they have their own limitation like lack of space, open air, gardens, ample parking space, etc. Most of these problems can be overcome if you own a plot of land. One major challenge for most families is how to fund this plot of land and the ensuing construction costs? Many NBFCs today offer home loans in India. With various loan disbursing agencies in India, getting a plot loan has never been so easy.
Indiabulls Home Loans allows you to have the flexibility to build the house of your dreams, have your own space to build around in any way you like with our plot loan. Many Indians dream to have a plot of land to call their own, and this dream can now come true. A loan for land purchase is available at attractive land loan interest rates. This NBFC is with you in every step of the way of getting your home loan for plot – from helping you file the documents, to calculating the perfect EMI and tenure for you.
Features & Benefits

• One Click Home Loan Eligibility
• By filling in few of your details, you can check your home loan eligibility with a single click.
• Speedy Processing
• With our quick loan approvals, you will not face any unnecessary delay that hinders you from getting your housing loan.
• Flexible Repayments
• You can relax about repayment by exploring our flexible repayment options.
• Long/Short Tenure
• We also provide tenure according to your needs and requirements. So, you can explore options of long and short tenure with Indiabulls Home Loans.

Documents

Now you no longer have to do monotonous paperwork. Indiabulls Home Loans is there to assist you in every step of filing your paperwork. All the paperwork required by it is as per the ISO certified process.
These documents required are as follows:

• Proof of both identity and residence (any 1) in the form of a valid passport, voter ID card, aadhar card or a valid driving licence.
• Proof of income in the form of last 3 months’ salary slips, last 6 months’ bank statements, showing salary credits
• Latest Form-16 and IT returns.

Other documents include own contribution proof, employment contract / appointment letter in case current employment is less than 1 year old; last 6 months’ bank statements showing repayment of any ongoing loans, passport size photograph of all the applicants / co-applicants to be affixed on the application form and signed across, cheque for processing fee favouring ‘IBHL’. Further property related documents include copy of allotment letter / buyer agreement and title deeds including the previous chain of the property documents in resale cases.
Eligibility & Interest Rates
Calculate your home loan eligibility with Indiabulls Home Loan’s simple home loan eligibility calculator. It will help you to calculate the amount of housing loan that you are eligible for, based on the home loan tenure and home loan interest. For example, if your net monthly income is Rs 15,000/-, then according to the Home Loan Eligibility Calculator, your eligibility amount is Rs 28 lakh at an interest rate of 8.50% for a tenure of 20 years.
The plot loan interest rate offered by us is feasible and very reasonable. We believe in transparency. To ensure a great housing loan experience for our customers, there will never be any hidden charges.

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Things to Keep in Mind while Renovating Your Home

You could be lucky to own a flat or a plot house in a decent neighbourhood of your city or town. You enjoy this luxury and are satisfied about it. But what about when your home is subjected to the vagaries of nature: rainfall, heat, cold, dust, and what when the years roll by and age and deterioration catch up with your home? That’s when a Home Renovation loan from Indiabulls Home Loans comes in handy. With the help of such loan, you can renovate your home in any manner you desire.
KEY BENEFITS

• Attractive interest rates
• Flexible repayments options
• Quick approvals and disbursals
• Available to new and existing customers
• No hidden charges
• Easy documentation

APPLICATION
Home Improvement Loans can be applied for individually or jointly. Note that all owners of the property must be co-applicants for the loan.
Loan Term: The payments for the loan may be spread over a maximum term of 15 years. The tenure of the loan is also dependent on several factors like the customer’s profile, their age at maturity of loan, the property’s age at time of loan maturity. Applicants may apply for the Home Improvement/Renovation loan either individually or together, jointly. However, it is compulsory for all owners of the property to be co-applicants for the loan.
DOCUMENTS
Here is a list of documents you shall need when applying for a Home Improvement or Home Renovation Loan from Indiabulls Home Loans:
PROOF OF IDENTITY & RESIDENCY:

• Aadhaar card
• Passport (must be valid)
• Voter ID card
• Driving license (must be valid)

INCOME PROOF FOR THE SALARIED:

• Salary slips of the last 3 months
• Bank statements showing salary credits of the last 6 months
• Most recent Form-16 and Income Tax return

INCOME PROOF FOR THE SELF-EMPLOYED:

• Income Tax Returns, along with last 3 assessment years’ computation of the income
• Last 3 years’ balance sheet and profit & loss account statements with the annexures and schedules
• Last 6 years’ current account status of the business entity
• Last years’ savings account status of the individual

PROPERTY PAPERS AND OTHER DOCUMENTS

• Any original title deed of the property
• Estimate from an architect or civil engineer of home improvement/renovation
• Any proof of no encumbrance on the property

Fixed Rate Home Loans and Floating Rate Home Loans:
With Indiabulls Home Loans, get hassle-free home loans with interest rates as low as 8.40%* per annum with EMI starting at Rs. 861 per lakh. Interest rates are available at fixed and floating rates, too. A fixed rate home renovation loan has fixed rates of interest for the entire duration of the loan and this does not change no matter what the conditions. Floating home loan interest rates change with changes in market conditions. Home loans are attached to a base rate and a floating rate therein when they are offered on floating interest. Hence, with a variation in base rate, the floating interest rate varies as well. A floating rate home loan is cheaper than fixed interest rates and this is one of its highlights. In a fixed rate home loan wherein the interest rate is stable, the interest rate is higher than that of the floating rate home loan.

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Your Guide to Buying a Mortgaged Property

A mortgage loan, or simply mortgage, is used by property buyers to raise funds to purchase real estate. Aternatively, a mortgage can also be used by existing property owners to raise funds for any purpose. Buyers can thus exercise this mortgage while reserving the right to keep possession of the property belonging to another person until the debt owned by the other person is discharged.
In fact, a mortgage is an agreement that makes your home loan possible although the terms mortgage and home loans are often used interchangeably. A mortgage is a written document that gives your lender the right to foreclose your home in case of default. Since real estate is usually very expensive, almost all over the world, most buyers pay 20% down payment while they borrow the remaining 80%. To reduce their risk while lending, NBFCs require you to use the property you are buying as collateral, and that undertaking is your mortgage.
MORTGAGE INTEREST RATE
Most buyers prefer to pay a higher mortgage rate to avoid paying closing costs, even while some homeowners are fixated on obtaining the lowest mortgage loan interest rate even if it means taking money out of their pockets at the time of financing, most buyers, however, prefer to pay a higher mortgage rate to avoid paying closing costs. This category of home buyers prefer to pay one-time fee instead of lower interest rate to save money over the long term. This tactic works if you plan to stay with the mortgage for a reasonable period of time. You will be given the opportunity to buy down your rate when you apply for a home loan,. This requires paying mortgage discount points which are a form of prepaid interest.
Mortgage rates are more sensitive to market fluctuations than most other loans. Also known as Mortgage Backed Securities (MBS), these pools of loans are bonds sold to investors whose prices are determined by market conditions. As the prices of MBSs fluctuate in the market, so do mortgage interest rates.
DISCOUNT POINTS
Discount points lower the amount of interest that mortgage borrowers have to pay on subsequent payments and they are a type of prepaid interest or fees. Each discount point generally costs 1% of the total loan amount and depending on the borrower, each point lowers the loan’s interest rate by one-eighth to one-quarter of a percent. Discount points are tax deductible only for the year in which they were paid.
PRIME CONCERN IS LOCATION
One of the prime concerns while buying a property is location. Most new properties are located in the outskirts of the city or on the periphery. This could be a cause for concern as it could be far from your place of work or your child’s school. That is why it might be a better idea to buy an existing built-up home or a resale home which is located at a reasonable location inside the city. Further, essential civic infrastructure like banks, hospitals, markets are located at a reasonable distance from a resale property. You can move inside the flat immediately after buying and do not have to wait for construction to be over.
BASIC DOCUMENTS REQUIRED
You need to have a sale deed to ensure the seller is indeed the owner of the house. You should also get copies of the stamp duty and property tax papers. This process is best explained by an example. Suppose you buy a house of Rs. 70 lakh and the seller has an outstanding loan of Rs. 30 lakh on it. Then there are three different ways in which you can buy the house. One is using your own funds; second is taking a loan from the same NBFC/institution from where the seller took the loan,and third is taking the loan from another NBFC. In all three cases, you can use the Home Loan EMI Calculator or the mortgage calculator to arrive at the EMI and the interest rate for the mortgage loan.

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Interested in a Home Loan? Here are the Latest Interest Rates

With the continuing skyrocketing prices of today’s day and age, it seems like the only way to own even a small home is by winning a lottery! However, when you do decide to take the leap and buy your own home, there are many things you should consider with immense seriousness.
One of the most complicated decisions is choosing the home loan that’s right for you. A large number of financial institutions are ready to accept your loan application, but that does not mean that you grab the first deal you get.
Home loans typically lock you for a good period of 15-20 years or at times, even more. So, it is important to make sure that you thoroughly research the same, before shortlisting the best home loan, which doesn’t pinch you every month.
First and foremost, you need to check your eligibility for a home loan. Depending on your income, personal loan history, and credit score, your eligibility for a home loan will be considered.  Luckily, with IBHFL, all you have to do is visit the Home Loan Eligibility Calculator on the website or download the app and you’ll know if your dream home is right around the corner, within minutes!
Once you have passed the eligibility test, it’s time to check the interest rates. Now, this is something you’ll only be able to figure once you track the home loan market for a few weeks or months. Follow home loan-related blogs and keep a track of the various NBFCs that offer financial solutions for home-buying needs. Currently, Indiabulls Home Loans offers one of the lowest rates of interest in the market at 8.50%*. Check out more home loan-related details on the website.
In addition to having one of the lowest interest rates in the market, Indiabulls Home Loans also offers super convenient features like the Home Loan EMI calculator as well as quick process, which are documentation-free. With the EMI calculator, all you have to do is feed in your budget and the period over which you’d like to repay the home loan. Now, depending on the current rate of interest, in a matter of seconds, the EMI amount will be calculated for you. This way, one can plan their finances from the get-go.

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The Doorway to your Dream Home is just 5 Steps Away

Buying your very own home is not an impossible feat. Here are a few ways to ensure this dream home of yours is well within your reach.

Step 1: Make a physical list of priorities

Start by making a realistic and a prioritized list of things that are important to you. When you start house hunting, strive to get at least the top 3 things on that list in one place. This is to ensure that you choose a place that fits your needs and don’t end up settling for one that doesn’t.
Are you most concerned about the location? Square footage? The view? The neighborhood? You may have to let go of one thing to get another, but it’s easier to be more focused when you know what’s non-negotiable. Also, distinguish between your preferences and your needs on that list.
For example, you may have loved the tall ceilings at your last house, but do you really need them in your new home? This process will help you switch your expectations and focus on the things that really matter the most, like a safe and open play area for your children.

Step 2: Think ahead

For how long do you plan on staying in this house? If you are single or newly married, you might end up opting for a smaller space for the time being and plan on moving to a larger home to keep up with your changing needs.
However, if you are planning on expanding your family or working from home soon, make sure you factor in the space you’ll need for that accordingly.  In other words, don’t give in to something that has features you know will only work for a year if you plan on spending a decade there.
Of course, life is unpredictable and you can’t plan for everything, but consider the things you know for sure or at least the things that will probably change in your near future.

Step 3: Stick to your budget

The ideal budget differs from person to person, which is why there’s no perfect number or answer to this. However, a realistic way to go about this is by keeping your EMI amounts to about 25% of your total monthly income. For those who plan on living in a metro where the housing prices are at an all-time high, you might have to stretch beyond this number.
Make sure that the property that you have looked for fits your budget. Ensure that you do not land up in a situation wherein your EMI amount exceeds your monthly budget. To do so, use the Home Loan EMI calculator on the Indiabulls Home Loan app or web page and work backwards from there.

Step 4: Choose the home loan that fits your needs

It’s advisable to consider a home loan that comes with one of the lowest interest rates in the market, like the one that IBHFL offers starting at just 8.50%.
Other than affordable rates, IBHFL’s quick, documentation-free, and easy process is also incomparable to most others.

Step 5: Have an ‘almost’ fool-proof repayment strategy planned

Once you acquire a Home Loan, finances will obviously become tighter than ever. Every single expense must be documented and planned, allowing very little scope for wavering towards a splurge. One must also set aside a certain percentage of their income for financial emergencies.

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REBUILDING YOUR CREDIT HISTORY WITH A SECURED CREDIT CARD

One of the dilemmas many people face when applying for credit for the first time is that lenders want to see that you have a good track record handling credit. The problem is, how you can you demonstrate that you can effectively manage credit if you’ve never had credit extended to you before?
In a similar manner, those with past credit issues but who have been working hard to resolve previous difficulties, also find being approved for credit to be a challenge. Even though these past issues may have resulted from things out of the borrower’s control such as a prolonged illness or job loss, past credit problems can prevent many individuals from being approved.
In fact, even a less-than-stellar credit history can have a tremendous impact on your financial well-being. Common credit situations such as car loans or mortgages that many take for granted, can be out of reach if your credit history is a bit rocky. Even if your credit score is just average, you may be approved for additional credit, but you could very well be forced to pay a higher interest rate to account for the perceived increase in risk. Over the life of a mortgage, for instance, this could result in tens of thousands of dollars in extra costs.
Clearly, having a good credit history has tremendous advantages but how do you go about mending past credit issues when you no longer qualify for credit? One of the most common ways is to use a secured credit card. Here’s how it works.
Unsecured Versus Secured Credit Cards
Before we get into the mechanics of how a secured credit card can help repair your credit history, let’s first explain what we mean by a “secured” credit card. While there are a multitude of credit cards out there all offering various incentives and benefits, all credit cards fall into one of two major categories – secured and unsecured. Unsecured credit cards are the most common type of credit card and this is what most people tend to think of when referring to a credit card.
An unsecured credit card is not tied to any form of collateral and by charging goods or services to the credit card, you are essentially borrowing money from the card issuer. Amounts charged to the credit card must be paid back based on the terms you agreed to when you accepted the credit card.
However, a secured credit card is backed by collateral – typically in the form of a cash deposit – that you provide to the secured credit card issuer. If you fail to make the required payments, the card issuer will deduct from these funds to recover their costs.
The Home Trust Secured Visa
The Home Trust Secured Visa credit card is available with credit limits equivalent to the amounts of the security deposit provided; from a minimum of $500 up to a maximum of $10,000. Applicants can select from two interest rate options – the Low-Rate Option carries an interest rate of 14.9% on all unpaid balances and has a $5 monthly ($59 annual) fee. The No Annual Fee Option, as the name suggests, does not have an annual fee but it carries a higher interest rate of 19.99% on unpaid balances.*
Not only can you make purchases with your Home Trust Secured Visa card anywhere Visa is accepted, you can also access cash from over one million ATMs around the world. Simply look for the Visa or Visa Plus logo and you can quickly and easily withdraw cash from your account. Note that additional fees apply for these services – please refer to the Home Trust Secured Visa webpage for full details.
Rebuilding Your Credit History
The Home Trust Secured Visa credit card is a highly effective way to repair past credit history. Because it is secured by a deposit, virtually all applications can be approved, so even if you’re recovering from a bankruptcy or a consumer proposal, you can still enjoy the convenience and benefits of a Visa credit card.
Home Trust reports the monthly status of your account to both Equifax and TransUnion, and providing these credit bureaus with updated credit activity is key to repairing your credit. With a Home Trust Secured Visa card, and by paying monthly balances in full and on time, you will accelerate the process of rehabilitating your credit score.

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9 Factors Affecting Your Eligibility for a Loan Against Property

When it comes to taking major steps in life, the first thing that comes to your mind is ‘How would you arrange for the finances?’ Every new phase of life, whether personal or professional, involves a great deal of money and while there are several ways of funding your requirements, loan against property serves as one of the best ways to meet your financial requirements in a quick and efficient manner.
As the name suggests, Loan Against Property or Mortgage Loan is a loan disbursed by a financial institution against the mortgage of a property. The property being offered as mortgage fulfills the purpose of security for the lending institution, while the ownership of the property remains with the borrower and can continue to occupy the premises.
While usually, the maximum amount of disbursement for a loan against property ranges from 40-60% of the fair market value of the mortgaged property, fulfillment of certain eligibility criteria is required to be eligible for the mortgage loan.

9 Factors Affecting Your Loan Against Property Eligibility

1. Regular Flow of Income:

   One of the most primary factors is that the applicant must have a steady and regular source of income which ensures that the EMIs of the home loan will consistently be paid.

2. Age of the Borrower:

   The borrower’s age plays an important role in the ability of repayment of the debt. If the borrower has already reached the retirement age or will attain the age in a couple of years, then chances are your loan application might get rejected. In such situations, you can always try for loans with a shorter duration, which however results in higher EMIs.

3. Bad Credit History:

   A bad CIBIL Score is the last thing you would want if you’re applying for a Loan Against Property. Naturally, lenders seek the repayment ability of borrowers before lending and your credit history needs to support the fact. Any late payments, cheque bounces, defaults in payments etc affect your credit history and with such impression, chances are your application would get rejected.

4. Tenure:

   With longer tenures, your payments are spread across longer durations, resulting in lower EMIs. In case of low incomes, you can always opt for longer tenures resulting in higher chances of a successful outcome.

5. Repeatedly Changing Jobs:

   If you’re a professional, job stability plays a significant role in your loan against property If you’re in the habit of frequently switching your jobs, your loan application might be rejected by your financial institution.

6. Insufficient Property Documents:

   The documents related to the property that needs to be mortgaged should be complete and in order. This includes title deeds, approvals from relevant authorities, building plans and other documents as required by your financial institution. The lender needs to ensure that the property has a clear title and is approved by the local authorities before lending you the amount.

7. Rejection of a Previous Loan Application:

   Financial Institutions and credit intermediaries keep a record of the loan applications that have previously been rejected. If your loan is rejected, it will appear in your credit profile check, hampering your chances of getting a loan approval. Thus, it is important for you to apply for loans only when in need and avoid applying without any reason.

8. Insurance of the Property:

   Mortgage insurance always lowers the risk of a borrower as well as lender as in case of any unfortunate circumstances, the insurance covers the loan repayment reducing the burden on your family. It’s always advisable to avail a mortgage insurance to safeguard your financial interests while improving your mortgage loan

9. Inadequate ITRs:

   In cases of a borrower being self-employed, the lender usually asks for the most recent 3 years income tax returns. In cases of inadequate ITRs, even though your income is adequate, the lender would find it insufficient to prove your regular flow of income, eventually reducing your chances of an approval.

 Indiabulls Home Loans offers Loan Against Property with maximum finance at highly attractive interest rates of as low as 8.70%* per annum. To apply visit and fund your needs for your desired purpose.

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What’s More Beneficial? Home Loan Balance Transfer or Top-up Loan?

The decision of buying a home is definitely a big step in every individual’s life. While the decision always comes with a huge sense of accomplishment, all thanks to the zooming property rates and large ticket size, not every home buyer can buy a home on their savings entirely.
With the downtrend in interest rate cycle, a significant portion of home buyers always opt for home loans to fulfill their dreams. A home loan route improves the chances of an individual to purchase a better house in a good location, which eventually comes with its own benefits. While owning a better house gives unparalleled comfort to the homeowner, it also improves the prospects of capital appreciation creating wealth for an individual over the period.
Presently, the rate of housing loan interest in India ranges anywhere between 8.70% to 12%. While the RBI, since 2014, has reduced interest rates by over 200 basis points, a customer with a home loan at floating interest rates is unable to entirely benefit from such interest rate reductions. However, there are different factors that can help such borrowers further reduce their interest rates or even benefit from additional liquidity for extra fund requirements.

Home Loan Balance Transfer

In simple terms, a home loan balance transfer is the transfer of the unpaid balance of a home loan to a different financial institution. Any business is always on the lookout of having good customers on board. Hence, such financial institutions extend highly competitive rates to take over your home loan from a different entity. While it depends on a cost-benefit analysis, given the processing charges and other aspects of transferring your home loan, if you’re in early periods of your loan or with a significant amount still left unpaid, it always turns out beneficial for individuals to transfer their home loan balance and get the benefit of reduced interest rates that can save them a good deal of money.

Top-Up Loan

The amount of a home loan is primarily dependent on two major factors viz. the market value of the property and the ability of repayment of the borrower. While the property may witness capital appreciation over time, with regular payments of EMI, the outstanding principal amount reduces which helps the borrower in obtaining a top-up loan when in the need of additional liquidity.
Basis the existing records and creditworthiness of a borrower, the financial institution may extend the top-up loan facility to the borrower at nominal interest rates but a tad higher than the prevailing home loan interest rates. Top-up loans can be used for any personal reason and when in need of additional liquidity, such facility always comes in handy to the existing home loan borrowers.
Moreover, borrowers looking to reduce the interest rates on their existing home loans can even get a combined benefit a home loan balance transfer along with the top-up loan facility.
Thus, while it depends on individual circumstances, borrowers can always identify their requirements and accordingly decide to go for a balance transfer or a top-up loan or at times even both, that best suits their requirements.
Indiabulls Home Loans offers housing loans and top-up loans at attractive interest rates starting from as low as 8.70%* per annum. Additionally, even if a borrower has his existing loan in a different financial institution, they can transfer their balance home loan and obtain the benefit of a top-up loan at competitive interest rates. Visit our today for further information.

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