Month: January 2017

HDFC Bank Home Loan

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Applying for a home loan seems to be obvious when the family is expanding or  when the income rises by the year. In the long term, home loans, being secured loans, will be a good mix of debt portfolio.

The HDFC Bank Home loans are processed quickly and with necessary documentation with no hidden charges and that with attractive and competitive interest rates. Bank staff is adequately trained to handle the quick TAT. The Comeptitiative interest rate offered by HDFC will be a boon to the families, which in turn helps in whole tenure.

Criteria for availing the Home Loans:-

  • Above the age of 21 years.
  • Regular source of Income with appropriate documentation.

There are certain ways of raising the eligibility of the Home Loans.

  • The rate of interest for Woman is reduced by 40%. And HDFC Bank is the foremost bank in India to disburse the Home Loans to Women
  • Joint holders can avail more loans, like Sisters / Brothers or Spouse.
  • Co-Owerns are necessarily be Co-applicants.
  • Good Track record of the CIBIL.

HDFC Housing loan advantages:-

  • To ease the loan process , HDFC has come up with the option of collecting the documents and giving personalized service at the doorsteps.
  • There will be a decade of networking and bonding with the Bank.
  • Time to time HDFCcome out with numerous re-payment options and offers.
  • There are options to choose from fixed rate and reducing balance/Floating rate for loans , EMIs can be opted accordingly.
  • The Loan can be applied online / nearest branch or call back option and the same can be tracked in HDFC weblink.
  • The Home loan can be availed for purchase of new house / repair / renovation of the existing house/Pre-owned house/plot of land.

Home Loan Eligibility Criteria :

HDFC Home Loan is the easiest option for buying a dream home , but the getting the same depends on many factors which are listed below.

  • Monthly Income of the Applicant : The loan amount in precisely depends on the monthly income of the applicant and the Co-applicant. HDFC provides up to 60 times the applicant’s income.
  • Available Income is calculated after deducting the existing EMI,The EMI here is referred as loans taken other Banks & for other purposes.
  • HDFC Bank provides up to 90% of the loan against property. Suppose if the property is 60 lacs and the maximum amount that 54 lacs.Banks will consider other important norms before loaning, like minimum area requirements for an apartment carpet area. Age of the property/location of the property/reputation of the builder. The property should be free from any legal disputes  and free encumbrances among other points which the Bank Consider.
  • Another important component of the home loan is it tenure of the loan. The longer the duration higher will be interest and the lesser the tenure higher will be the EMI.
  • Another paramount factor in deciding the eligibility of the loan is m credit history and credit score of the borrower,data is provided by the CIBIL.
  • Age of the borrower should be above 21 years and upto 58 or 60 years depending upon the earning capacity and the disposable income , people who are nearer to the retirement age will get lesser tenure as against he younger age borrower.
  • The Loan eligibility can be increased by adding the co-applicant or spouse. Only certain relationship are considered as co-applicants.
  • HDFC offers fixed rates for 20 years tenure and over and above that adjustable rate will be considered , considering the factors like inflation, price value for money etc.,

Documents Required for HDFC Home Loan:

  • Application Form with 2 photographs.
  • Proof of Residence and Identity.
  • Last 3 months Salary Slip ( Salaried Individual)
  • Form 16 / ITR ( Salaried Individual)
  • Processing Fee.( Processing Fee upto 1.25% of the loan amount or Rs.3,000/- whichever is higher& taxes as applicable)
  • Bank Statement for the Last 6 months.
  • Last 3 years Income Tax Return( Self Employed – Professional/ Business Person)
  • HDFC Ltd Home Loan

Key Highlights of HDFC Ltd Home Loan

Interest Rates for women 9.15% – 9.25%
Interest Rates for Others 9.20% – 9.30%
Min. EMI per 1 Lakh Rs.815 (women), Rs.819 (others)


Maximum Loan Amount to buy a Home                            

Loan Amount Maximum Funding or avail loan amount
Up to INR 75 Lacs 90% of the Property Value
Above INR 75 Lacs 80% of the Property Value

The above threshold is subject the Market Value of the property and the replacement capacity fo the property.

There are lot many factors which are considered in determining the loan amount apart from regular income, age , credit history, there are other factors like qualification, number of dependants,spouse’s income , assets and liabilities of the family , stability in the occupation etc.,

Dream Home also gives an added advantage in terms of tax savings , the principal and interest component which are re-paid are eligible for the tax deductions under Income Tax Act of 1961.

HDFC Bank gives an added option of converting  existing loans to the new loan under the ‘Home Converstion Loan’with he additional funds for the new house. This option helps one to move to the new house without pre-paying the old home loan.

HDFC offers premature re-payment of the loan subject to the meager pre-payment charges by paying the outstanding the lump sum amount.

RPLR Rate 16.30%
Repayment Period 5 – 30 Yrs
Min. Income for Salried Professioanal Rs.12,000 per month
Base Rate 9.30%
Processing Fees 1.25% of the loan amount or Rs.3,000- whichever is higher.
Max Loan amount above 30 Lac 75 – 80%
Min. Income for the Self Employed Rs.16,500/- per month

RPLR – Retail Prime Lending Rate

HDFC Home Loan EMI Calculator:

  • HDFC offers lowest EMI per lac, the loan EMI can be as low as Rs.816 per lac, with loan tenure upto 30 years.
  • Lowest home loan interest rate currently offered by HDFC is 9.15% for women and please refer to the link for HDFC EMI calculator
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What does this new Union budget of India 2017-18 mean to us?

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union-budget-2017

Union Budget 2017-18 is the amalgamation of both general and railway budget together. First off, it will be published on 1st February than the usual date of 1st March and as stated earlier, there will be no separate railway budget this year. By this amalgamation, it is projected that it will help the government to ease up the burden of the common man.

It has been forecast that there is decline in India’s GDP growth which is currently 7 % as against its October projection of 7.6%. This downfall is highly due to the demonetisation which has brought a huge impact on the economy of India with a drop in consumer spending and job cuts. Although the decision is admirable for the purpose of curbing the terror funding borne out of black money but has resulted in cash crunch in the economy. At this instance, impact of demonetisation has shaken the industries sales and a latest analysis by SBI among SMEs reveals a decline of 66.67% in business.

After facing all such difficulties, the expectations of common man from the upcoming Union Budget 2017-18 are extremely high. The following are some of the key expectations from Budget 2017-18: 

Towards a Simplified Tax Regime

This is the topmost expectation of every Indian citizen. Budget 2017 is expected to reaffirm the government intention towards a simplified tax regime, with lower rates for corporates and individuals while abolishing all exemptions

  • With demonetisation woes, it is highly expected that there is change in the current tax slabs , high hopes for any upward revision in the minimum tax slabs will be appraised and corporate tax rates currently at 35% will be brought down to 20% while abolishing all exemptions.
  • Presently under Section 80C of Income Tax Act 1961, the deduction is restricted to INR 1.50 Lakh. A revision in this limit to INR 2 lakh will be appealing to the citizens and will save their money.
  • Under house properties head, if a person has more than one property ,then tax is levied on deemed income received from other properties assuming it as let out or unoccupied. Taxing this deemed income may be eliminated in the upcoming budget.
  • Looking forward for introduction of various healthcare schemes to improve the livelihood of the rural population, and as healthcare costs is increasing it is widely expected that exemption on medical reimbursement will be revised and upgraded.
  • After the introduction of ICDS (Income Computation& Disclosure Standard), Corporate tax payers have to maintain multiple books as required under different laws which led to compliance burden over the companies. Some experts do believe that upcoming budget will provide relief in this regards also.
  • Introduction of GST and GAAR are really important reforms in India and can actually be a game changer, bringing abatements schemes and streamlining the current tax alignments.

Measures to build Cashless Economy

In order to transform India into a digitally empowered society, the next budget is expected to promote cashless transactions. Some of these already introduced such as discounts availed if cards are used at petrol pumps, toll booths. Additional benefits are expected in the upcoming budget for those opting for digital mediums for making payments.

Interest subsidy on Low cost home loans

Prime Minister of India, Mr Narendra Modi’s year-end speech, supposedly a preview to the budget declared interest subsidy on low cost home loans and easily availability of land, by proposing a one step process to bring down stamp duty.

Focus on Agriculture

The poor and rural areas are hurting badly. It is widely anticipated that govt. will bring policies to put more money in their pockets and special focus will be given on the methods adopted by farmers in order to increase their income and greater access to cashless transaction modes.

After all these expectations and wishlist, it would be really interesting enough to know how the budget 2017 will goes on 1st February.

What are some tips and tricks for managing a car loan?

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If you are looking forward to purchasing a car, it has to be done in the right time or else you may miss the opportunity. It may not be solely possible to contribute the whole amount for the car in the first go but if you have some money and know that you can manage to pay the rest in installments, you should definitely go for car loan. This is easy to apply for and get and there are quite less hassles compared to other loans one may think of.

managing-car-loan

There are few tips that will help you manage a car loan better and make payment easy.

  • While applying for the car loan, make sure to pay as much money as possible in the form of down payment. Down payment will reduce the remaining balance and your total interest will be lower. If you don’t have much, pay as much as possible. It is not a good idea to pay more installments and less as down payment. You can even reduce the number of years required for payment in case you make good down payment. Monthly burden for a long time is not going to give you any relief.
  • Keep the loan term short as that will help you stay worry free. If you are taking a loan for four years instead of five years, you can have a year free of worries. The car will depreciate in value with each passing year and after five years it may not be as good as you want it. You may think of buying a new car at that point of time but if you have the loan going on, you will lose interest and may have to continue with the old one with quite less advantages.
  • Take insurance for your vehicle but don’t get swayed by the add-ons. Add-ons definitely have some advantages but they increase the amount of premium. While some add-ons are beneficial, some are not. You shall not go for any such extra benefits without judging how frequently they are used. This is mandatory for every insurance holder.
  • Choosing your car smartly will reduce your burden. There are some cars that are more prone to damage while some are not quite vulnerable. It is important to do proper market study before making the purchase. This will cause lesser depreciation and you will have lesser trouble while paying the car loan. Don’t just go for a luxurious car without thinking of the cost of maintenance and the high EMI. Take a car within your reach.
  • Make a proper schedule for the EMIs to be paid. Automatic transfer from the bank is the best thing that you can do as that will make sure that the EMIs are paid every month without fail. The date shall be just 2 to 3 days after your payday. This will make sure that the installment is paid and you don’t have any impact on your credit score.
  • It is very important to manage your expenses well if you have a loan to pay off. You have to make sure that you don’t use it for occasions you can do without them. You shall also take care of its maintenance so that you don’t have to pay much on the damage.

Why Does Gold Rate in India Fluctuate Every Day?

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Gold Rate

In spite of the changing trends and modernization, gold continues to be the most popular precious metal in India. It is not only popular for making ornaments, but also as a means of investment. Many people who still believe in the traditional methods of investment, opt for this precious metal. However, there seem to be heavy fluctuations in the price of gold in India nowadays and there are several factors which are responsible for these fluctuations. Let us study these factors in detail.

  1. International price of gold: One of the main factors behind the movement in gold prices in India is the international price of gold. Most of the domestic demand for gold in India is met by gold imports. Hence when the international prices rise, there is also a rise in the price of gold in India.
  1. Dollar value: When the dollar loses value, the price of gold rises and vice versa. This is because dollar is the most stable currency and when there is any turbulence global or domestic turbulence that can affect dollar’s strength, people’s investment in gold increases.
  1. Gold ETFs: There are other factors as well which affect the international price of gold. One such factor is the Gold Exchange-Traded Funds or ETFs. People invest in gold EFTs electronically and if there is a large redemption in these funds then it tends to affect the international price of gold, pushing the price lower.
  1. Demand for gold: Apart from these, the price of gold also depends on demand for the yellow metal from large consumption countries such as China and India. With most countries having high demand and lean seasons, gold prices also vary.
  1. Duties and other policy decisions: Any adverse policy decisions of government like imposing import duty on gold can affect the price of gold. Such duties make gold costlier in India which in turn affects consumption.

All these factors affect the price of gold in the international market and subsequently in India.

Rupee and the price of gold

The other important factor that affects the price of gold in the country is the movement of the rupee. When the rupee drops against the dollar in interbank trading, it causes an increase in the price of gold. This is the reason that it is necessary to keep an eye on the international price of gold along with the movement of the rupee against the dollar. If the price is steady for both then the price of gold will also be steady in the country.

Inflation

The other factor affecting the price of gold is inflation rate. In the last few years there has been a high inflation rate in the country due to which the rate of gold has risen. This is not just true for gold but also for other commodities including food products. A rise in inflation causes a natural rise in the price of gold in the country.

Higher domestic gold inventories

India was the highest consumer of gold in the year 2014 and was second biggest after China in the first quarter of the current year. Due to the high domestic gold inventories, there was a drop in the demand for gold in the current times leading to a drop in the price of gold.

Concerns over monsoon

Farmers are the main factor leading to the demand of gold in the country. Due to a weak monsoon the farmers face financial difficulties leading to the sluggish demand for gold in the country. It is true that almost two thirds of the country’s demand for gold comes from rural areas. This is because jewelry is the traditional means of storing wealth for many rural Indians who do not have access to or faith in the formal banking system. This is the reason that when the monsoon is weak the demand for gold in the rural areas decreases and hence the price of gold falls.