Month: February 2017

How to apply for SBI home loan on paisabazaar.com

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Although the basic requirement of a home loan customer is the same – i.e. to purchase a house, but there are various facilities and requirements of people from different backgrounds. For instance, a business owner may have different requirements compared to a salaried employee. This is the reason that State Bank of India offers different home loan products to suit different requirements.

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How to apply for SBI home loan on paisabazaar.com

Nowadays many websites like paisabazaar.com provide the facility for applying for home loans online. These websites are quite user friendly and the best part about applying on these websites is that you can compare the different home loan products available in the market and choose the one that suits you the best. By far the variety of home loan products offered by SBI is the largest in the market and no other bank provides so many different options to its customers. The different types of home loans offered by SBI are as follows:

  • SBI Max gain home loan
  • SBI Yuva home loan
  • SBI NRI home loan
  • SBI realty home loan
  • SBI pal home loan
  • SBI tribal plus home loan
  • SBI Gram Niwas home loan
  • SBI sahyog niwas home loan
  • SBI flexi-pay home loan
  • SBI her ghar loan

Applying for an SBI home loan on paisabazaar.com is quite simple and easy. You simply have to open the home loan section of the website and click on the option of SBI bank home loan provided among a list of home loans from different banks. These links are provided at the right hand side of the page and clicking on the link for SBI home loans will take you to a new page where you have to fill out an online form with your full name, email address and phone number. You will shortly be contacted by an SBI home loan executive who will discuss your requirements with you.

The process of applying for the home loan is quite simple and once you submit your documents the bank will verify them and study your credit score before approving the loan. Other factors like your monthly income and your ability to repay the loan are also considered both for approval of the loan and also for deciding the loan amount. You can take any of your earning family members as a co-applicant to increase the loan amount.

Why SBI home loans?

SBI is one of the most trusted and preferred banking institutions in India as far as loans are concerned. This is partially due to the easy and convenient processing methods and low interest rates. The bank was provided the ‘most preferred home loan provider’ title, Awaaz consumer awards and also the ‘most preferred bank’ award in a survey conducted by TV 18 in association with ORG Marg in 21 cities across the country.

The low processing charges levied by SBI bank make home loans more affordable for the customers. The rate of interest is also low compared to other banks and the interest is charged on the daily reducing balance method which takes into consideration the loan balance at the end of the day for calculating interest. With SBI loans there are no hidden costs and administrative charges which further reduces the liability burden on the customers and the charging structure is both reasonable and transparent. No pre-payment penalty is charged to the customer if he or she pays off the loan in part or full before the tenure of the loan is completed. SBI has a wide network of more than 15,969 branches all over the country which makes it easy for customers to apply for an SBI loan from a branch closest to them.

How to apply for HDFC home loan on Paisabazaar.com

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Every middle class Indian family dreams of buying a home, but can seldom afford to do so based completely on their savings. Most home buyers depend on home loans for buying property. The popularity of home loans is also on the rise due to easy availability and affordable interest rates. A home loan is a secured loan and hence the rate of interest on it is low compared to unsecured loans like personal loans. At the same time, all banks and financial institutions provide various home loan products to their customers.

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HDFC bank is a private sector bank and has quite a formidable reputation as far as banks go. HDFC has come up with various home loan products for its customers and you can even apply for an HDFC home loan online. This can be done on the official website of HDFC bank and also on the websites like paisabazaar.com. The added benefit of applying for home loans on paisabazaar.com is that you can compare the home loan products offered by different banks and financial institutions and choose the one that suits you the best. HDFC home loans are quite popular among home buyers due to competitive interest rates and customer friendly terms and conditions.

How to apply for HDFC home loan on paisabazaar.com

When you open the official website of paisabazaar.com, you need to go to the home loan section. On this page you will find general information about home loans and what you should bear in mind before opting for them. There is also an online form which asks for some personal and financial details and by filling out and submitting this form, you will get information about the different home loan products suitable to you. If you want to apply for the home loan from any particular bank like HDFC then you should click on the ‘HDFC bank home loan’ link provided on the right hand side of the page. This will lead you to another page on which specific information about the HDFC home loan products is given. On this page you will also find an online form asking for your full name, email address and phone number. When you fill out this form and submit it, you will be contacted by an HDFC bank home loan executive in a couple of days. You can discuss your home loan requirement with him or her and apply for the loan.

Why you should opt for HDFC bank home loan

There are different types of home loan products offered by HDFC bank which are as follows:

  • HDFC home loan to construct a house or purchase a house
  • HDFC home improvement loan
  • HDFC home extension loan
  • HDFC limited home loan for farmers and rural areas
  • HDFC home loan for agriculturists
  • HDFC rural housing finance for salaried and self employed

HDFC home loans are available with the minimum hassle and the personal and financial information shared with the bank is kept confidential. With HDFC bank home loans you have the option of having partly fixed and partly floating rate of interest, which is like having best of both worlds. You can make monthly payments of EMI through post dated cheques, ECS and Auto debit facility.

Eligibility criteria for HDFC bank home loan

An applicant who wants to avail HDFC home loan should meet some eligibility criteria as required by the bank. Checking your eligibility is quite simple, because you can simply log on to the official bank website or paisabazaar.com and check the eligibility criteria published there. As mentioned above, the bank offers different types of home loan products and the eligibility criteria for all of them are different. You can also study the information regarding the documents that you need to submit at the time of application for the loan. This information is also published on the bank official website and paisabazaar.com

How To Close A Home Loan?

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Finally paying off the debt for your home and owning it free and clear is the aim of all home loan borrowers. So you have come to the end of your home loan tenure or you have gathered sufficient funds to be able to pre-pay your home loan, and you are all set to live a debt free aka home loan free life. However, now you find out that while taking a home loan was a difficult process, closing the home loan is somewhat dreary too.

House in human hands on a white background

Depending on whether the home loan is being closed at the end of its tenure or whether you are pre-paying there may be a number of different steps involved. Let us take a look at some of those steps.

Application for home loan closure

Be it an end of term closure or a prepayment closure, most banks or NBFCs will require you to fill an application requesting for the closure, with simple reasons listed for the same.

Collection of your Documents

At the time of taking on the home loan, you will have submitted a number of documents to the bank or NBFC. These could include the Home Agreement, Stamp Duty Papers, Title Deeds, Deed of Sale, Conveyance papers, Power of Attorney, Payment receipts, Certificate of completion, Possession letters, etc, or any other document related to the house or property that was handed over to the bank or NBFC as collateral for the loan. Ensure that you have received all documents back and in good condition before you sign the bank’s letter confirming receipt of documents.

Lien Removal and No Objection Certificate

A lien was placed on your property by the bank or NBFC at the time of taking the home loan. This lien ensured that you were not able to sell the property to another party or to take a double loan on the property without the knowledge of the main bank or NBFC. This lien is to be removed at the closure of the loan by a bank official. An NOC or No Objection Certificate is also issued by the lending bank or NBFC to the borrower to confirm that they have no issues pending with regards to the property. This No Objection Certificate issued by the bank or NBFC is proof that you have paid the loan in full, and that the loan is closed in accordance with the terms of the lending bank or NBFC, and that the property is debt free.

Updation of Credit Scores

In India, credit scores are recorded by credit rating bureaus such as CIBIL, Experian India, Equifax India, and CRIF HighMark. On the basis of your loan or credit repayment history, you are ranked as a high risk or low risk individual or as a defaulter, if necessary. Hence, at the closure of your loan it is imperative to ensure that your bank or lending institution updates these bureaus of the closure of your loan. Although the process may take up to a month, this will increase your credit rating and also prevent any future financial difficulties caused by faulty credit scores.

Collection of left over cheques

While taking the loan you may have signed and handed over to the bank a series of cheques that the bank could use as security in the event that payments on the loan were missed or defaulted on. Ensure that once the loan is closed, the bank or NBFC hands over the remainder of the cheques to you or that the cheques are destroyed in your presence.

Collection of Loan Statements

After closure of the loan, the bank will issue you a number or statements and certificates for your records. The loan account statement will contain the history of payments made towards principal and interest during the entire tenure of your loan. The bank will also issue you statements of principal and interest paid that will help you in filing your income tax returns correctly.

For financial security, it is not just important to complete payment of and close your home loan. It is also necessary to ensure that all your property documents are in order and that there are no loose ends at either your side or the bank’s that may cause harm in the future. Go over each step of the procedure carefully to ensure that your home loan is closed correctly.

What are the requirements of getting your first credit card?

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Credit Cards are a very effective tool, only if used properly. They not only allow us to ‘buy now and pay later’, they also give us attractive discounts, gift vouchers, reward points and other privileges. However, if credit cards are misused, they can create one of the biggest debt traps for you!

first-credit-card

With demonetization drying up the availability of physical cash, credit cards have become more popular than ever. You can use your credit card at millions of outlets to pay for your purchases even without having cash.

Having a credit card is not difficult. With hundreds of cards in the market you can avail any card as per your requirement and suitability. You just have to meet a few eligibility criteria, submit some essential documents and you can enjoy a credit card yourself too. So, let’s find out what you need to do to have your first credit card.

Requirements of getting your first credit card

  • Your age

This is a no-brainer. You have to be above 18 years old to get a credit card in your name. While 18 is the minimum age criteria, some banks and financial institutions offer you a credit card if you are 21 or 23 years or above. There might also be a maximum age criteria beyond which you cannot apply for the card. Usually this age is limited to 65 years or 70 years.

  • Your annual income

How can you afford a credit card if you have no source of income? How will you pay off your credit card dues? Banks and financial institutions, thus, offer credit cards only if you have a minimum annual income as per their eligibility criteria. Every credit card has a minimum income requirement and if your income meets this criterion you can avail the card. This requirement starts from as low as Rs.1.8 lakhs per year.

  • Your employment status

Again, to have a source of income, you should have a gainful employment. You should be a salaried employee or have a business of your own. Your employment status, thus, is an important requirement too to get your own credit card.

These three requirements determine whether you can get a credit card or not. Besides these criteria, you also need to furnish some important documents. Here is a list of the documents required to avail a credit card.

  • KYC (Know Your Documents) which are an important requirement. KYC documents include your photograph, address proof and an identity proof. If, however, you are an existing accountholder with any bank or financial institution, your bank or institution would allow you a card without KYC requirements.
  • Age proof – age being an important requirement, you would have to submit your age proof when availing a credit card.
  • Income proof is also required. Every credit card has a minimum income criterion (as stated earlier). To prove that you meet this minimum income criterion, you would be required to submit your income proof. This proof can be your Form 16 and salary slip if you are employed or the Income Tax return of your business. Moreover, the bank might also insist on your bank statement of the last six months to establish your financial standing.
  • Joining fee – many credit cards require you to pay a fee to have the card. This is called the joining fee. While availing the card, you would have to pay the joining fee.

These were the common documents required to apply and avail a credit card. So, now you know what the requirements of having your first credit card are. Do you know how you can apply for the same? It is simple, actually. You can apply for a credit card online. Online application of a credit card is easy and convenient. You can compare the various cards available and their features if you go online. The application form is also available online which can be filled and submitted. Simple, isn’t it?

Since Credit Cards are cashless transactions, it goes in tandem with the Digital India movement introduced by the Government of India. E-Commerce thrives on online transactions. Cash on Delivery has even stopped by certain vendors post demonetization. Even though cash is available now, the limit on Savings Accounts is still at Rs 24,000 per week. Hence for larger transactions, you can use Credit Cards and reap other benefits as well. So, check your eligibility, documents and other requirements and then apply for your first credit card and happy shopping!

Should I lock in my home loan interest rate prior to inspections?

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home-loan-interest-rate

The pleasure of owning a home is incomparable to any other possession. So much hard work and research goes into purchasing a home and finding a home loan interest rate that suits you. As you are going to pay towards your home loan for a considerable part of your life, it is quite important to understand interest rates and other associated aspects before you actually sign the dotted line. You may have already selected the apartment of your choice and applied to several financial institutions to know their offering, so the only thing left to do is locking in the interest rate.

What does the phrase “locking in interest rate” mean?

Locking an interest rate means agreeing with the bank for a certain rate of interest to be levied on the loan. The market trend may go down or up and sometimes, buyers lock the lower rate to avoid more charges. In most of the cases the home inspection or appraisal is not done at the time of locking. However, bank offers a rate of interest and other terms in order to get the customer in. It may also happen that the appraisal will not be suitable for the customer or he may not be happy with the amount bank agrees to pay for the property. In such case, the customer can definitely move on. It is also possible to lock the interest rate after the inspection is done by the authority of the bank.

Knowing the interest rate of home loan

Home loan interest rates can be fixed or floating. Fixed rates are sometimes higher than the market rate as you will not have to bear the fluctuations that may happen due to change in the economic policy of the government. The fluctuating interest rates can be quite risky or may be worthy because they may eventually go up or down. In most of the cases, banks and financial organizations offer fixed rate for three to five years after which the market rate prevails. This is completely up to the policy of the bank and the privilege of the customers to choose the type of interest rate.

Shall you go for flexible interest?

This is quite a valid question for all the people who are looking forward to purchasing a home. If the market is up, that is the interest rate is high, you can go for flexible interest rate as it would eventually go down in some time. However, if the market is low, the possibility of interest rates going up is more. It can also go lower but it is not mandatory. You can always take a risk with higher interest rates and take a close look on the market before you think of locking the rate for your property. In any case, you always have the option of transferring your home loan.

What shall you know about locking interest rates?

While locking home loan interest rates, there are certain things you shall keep in mind.

  1. You are just locking the interest rate for the property you have decided. It does not apply to the borrower at all. So, if you choose to deviate from your choice, you will have to go through the process all over again. There can be a different interest rate at that point of time.
  2. If you want to avoid the hazard of the home loan documentation and processing of the loan, you shall present all your documents to the officer in advance. The checking and approval takes a lot of time and you don’t want to waste time in that process.
  3. Even before bank goes for the inspection, do it on your own. You can do proper inspection of the property and get to know if there is any legal hazard involved or not. You can also do the measurement with the help of a civil engineer.

Taking a home loan and purchasing a property is a major decision for every individual. You are going to invest a high amount from your income and you need to be sure of the pros and cons. This applies to locking home loan rates too. Make sure you have every information ready before making the big move.