A home loan is a loan taken from a bank or financial institution to purchase a home, build a house, or renovate a house. Interest rates are charged on home loans, and this debt is repaid monthly in the stipulated period.

Eligibility for Home Loan:

1. You must be a resident of India.
2. You should be 21 years old or older.
3. You must have a regular income.
4. Your credit history should be good.

Documents Required for Home Loan:

1. Identity proof: PAN card, voter ID, passport, etc.
2. Address proof: Ration card, electricity bill, telephone bill, etc.
3. Income proof: Salary slip, business documents, etc.
4. CRISIL, CIBIL credit reports.
5. Property-related documents: Papers, valuation reports, etc.

Home Loan Process:

To apply for a home loan, you can visit your preferred bank or financial institution and submit your application. After filling out the application, the bank will verify your eligibility and process your application. If your eligibility is accepted, the bank will offer you a loan. Upon acceptance of the offer, your loan will be approved, and you can use it for purchasing a house or building one.

How much loan can you take?

How much money can you offer to repay the loan? What interest rate will be charged on the loan? How long will it take to repay the loan?

A home loan is a significant financial decision. It can have a significant impact on your financial future. Therefore, before taking a home loan, it is essential to consider all aspects carefully.

Home Loan Interest Rates of All Banks for 2023 Initial Interest Rate (pa) (Processing Fee)

Kotak Mahindra Bank – 8.75% per annum up to 2% more Union Bank of India – 8.70% per annum up to 0.50% based on the loan amount Bank of Baroda – 8.60% per annum up to 0.50% (Minimum Rs. 8,500; Maximum Rs. 25,000) Central Bank of India – 8.35% per annum up to zero or 0.50% Bank of India – 8.45% per annum up to 0.25% for individuals (Minimum Rs. 1,500; Maximum Rs. 20,000) State Bank of India – 8.40% per annum up to 0.17% HDFC Home Loan – 8.45% per annum up to 0.5% or more than Rs. 3,000 LIC Housing Finance – 8.45% per annum up to 0.50% Axis Bank – 9.00% per annum up to 1% or minimum Rs. __

We pride ourselves on our comprehensive knowledge of the real estate market in areas like Mumbai, Navi Mumbai, Thane, as well as surrounding regions such as Karjat, Neral, Vangani, Badlapur, among others. Utilizing this knowledge, we aim to provide our customers with the best available options. Contact MakaanBhai.com now for a secure transaction in your home. We, at MakaanBhai.com, are the top property advisors in Mumbai, offering zero brokerage fees, with our experienced professionals dedicated to guiding you through the entire process.

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Seeking greater benefits from a home loan? You can apply for a joint home loan, which has numerous advantages. Let’s delve into this in detail…

Before lending a loan, banks scrutinize your credit score, income, and its sources. If your income isn’t substantial or your credit score is weak, the bank might deny the loan. In such circumstances, if you’ve received support from a co-applicant with a good income and a strong credit score, there won’t be any obstacles in obtaining a joint loan. Moreover, in a joint application, you can easily increase the loan amount.

There are two types of tax benefits available on home loans. Under Section 80C, you can avail tax benefits up to ₹1.5 lakh in the financial year against the principal amount. Additionally, a tax deduction is available on the interest repayment of up to ₹2 lakh. While both co-applicants can benefit from a joint loan, for this, the co-owner must also be the co-borrower; otherwise, he cannot reap the tax benefits. Even though being a part of the EMI payment, a co-applicant won’t get any benefit.

If the co-applicant is a woman, she gets more savings on the interest rate. Banks offer a 0.05% lower interest rate for women as compared to men. Sometimes, banks set a condition where a woman co-applicant should be a co-owner as well. This could result in significant advantages. Therefore, if you are considering taking a home loan, think about applying jointly with your spouse; this can bring you many benefits.

If the property is registered in the name of a woman or is jointly owned, there are savings in stamp duty fees. The stamp duty and registration fees vary from state to state. If a property is under a woman’s ownership, there can be a 1-2% savings. It’s worth noting that all these expenses are included under Section 80C, which means you can also receive tax benefits on these expenditures.

We take pride in having comprehensive knowledge about the real estate market in various areas such as Mumbai, Navi Mumbai, Thane, as well as surrounding regions like Karjat, Neral, Vangani, Badlapur, among others. To provide our customers with the best options available, we have utilized this knowledge. Contact MakaanBhai.com now for a secure transaction in your home. We, MakaanBhai.com, are the number one property advisors in Mumbai with zero brokerage fees, and our experienced professionals are committed to guiding you through the entire process.

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In reality, everyone dreams of having their own home; it’s an emotional connection with a place called home. Consequently, some people, especially in metropolitan cities, buy houses or flats as soon as they secure a job. This becomes feasible due to the easy availability of home loans, with savings thrown into the down payment.

Before purchasing a home, everyone should consider at least four aspects and then make a decision. When you deliberate on these aspects, you won’t necessarily need a specialist; you can make your own decision whether buying a home is essential for you or if it might be a wrong step.

Home Loan EMI Formula 2023: First Criterion – Salary: Individuals should consider buying a house only if the EMI amount for a home loan is 20-25% of their salary. For instance, if your monthly salary is Rs. 100,000, you can comfortably afford a home loan EMI of Rs. 25,000. However, for salaries between Rs. 50,000 to 70,000, purchasing a home resulting in an EMI of Rs. 25,000 per month will be financially burdensome because repaying a home loan takes a minimum of 20 years. The notion or advice that you shouldn’t buy a house is entirely wrong. Renting does have its advantages. If your salary can accommodate an EMI that’s only 25% of the amount, then go ahead and buy a house. For individuals earning between Rs. 50,000 to 70,000, it’s advisable to save while renting and wait until your salary reaches around Rs. 100,000 to make a larger down payment and buy a house. The higher the down payment, the lower the EMI will be.

Financially speaking, if someone earns Rs. 100,000, they can decide to purchase a home worth Rs. 30-35 lakhs. Similarly, for those earning Rs. 1.5 lakhs per month, a budget of up to Rs. 50 lakhs for a home would be appropriate. In any case, the maximum amount for the home loan’s EMI should be derived from the salary.

Home Loan EMI Formula 2023: Second Criterion – Decision as per Need: Decisions should be made based on necessity. What kind of work do you do? What’s your job profile? Decisions should be made based on these factors. If you buy a house immediately with your first job, you might get stuck in that city in a way. Due to career growth, most people tend to shift from one city to another in the initial stages. However, when buying a house with the first job, individuals are not inclined to change jobs. This is because they don’t consider it appropriate to live on rent in a new city and then rent out their own house. Additionally, if job security is uncertain, refrain from hastily buying a house.

Home Loan EMI Formula 2023: Third Criterion – Property Selection: If you’ve decided to buy a house, choose the property carefully. If you want to buy a flat, choose a location where you can get a good rental amount. Additionally, the flat’s price should witness an annual increment of at least 8% so that with inflation, the flat’s price increases and after repaying the home loan, i.e., after 20 years, the current price should be at least three times the buying price.

Home Loan EMI Formula 2023: Fourth Criterion – Real Estate Investment: If you’re considering investment in real estate, it’s better to buy a house connected to land in tier-2 or tier-3 cities. If a house linked to land isn’t available, buying just land could be an option. Land has historically provided better returns compared to flats. Not only that, but in many cities, there has been a decrease in flat prices last year, making buying a flat a potentially losing deal. When buying land, you can build your house according to your wishes.

It’s worth noting that some people burden themselves with EMIs by buying a house and a car with their first job. This often proves to be a completely wrong decision in the future. Therefore, decisions should be made based on necessity. If you start saving from your first job, you’ll feel secure about your retirement at the age of 40.”

For information, regulations, and pricing related to such properties, subscribe to MakaanBhai.com. As Mumbai’s leading property advisors with zero brokerage, we are committed to providing comprehensive guidance through our experienced professionals. We boast extensive knowledge of real estate markets in areas like Mumbai, Navi Mumbai, Karjat, Neral, Vangani, Badlapur, and more. Utilizing this information, we strive to offer the best options for our customers. Contact MakaanBhai.com now to ensure secure home transactions.

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Home Loan EMIs are the most significant expense for both salaried individuals and professionals. In such situations, if your EMI is reduced through an email, it will help you. You will need to send an email to your bank, which will assist in changing the interest rate on your home loan. If you feel your home loan interest rates are high, you can reduce them by simply sending an email.

The Reserve Bank of India (RBI) increased the repo rate consistently last year to control inflation. As a result, the current repo rate stands at 6.5%. Consequently, the interest on customers’ loans has also increased continuously. Presently, home loan interest rates range between 8.5% to 11%.

Lower EMI via Email If you wish to reduce your home loan EMI, you will need to send an email to your bank. It will be necessary to convert the floating rate of your home loan. For this, you will have to pay only a nominal conversion fee. Subsequently, the interest rate on your home loan will be converted to a floating rate. This conversion fee may range from 0.25% to 0.50% of your loan amount. Since the interest rate is floating, if the RBI changes the repo rate, your EMI’s interest rate will change accordingly.

RBI Alters Regulations Recently, the RBI has made changes to rules related to loans. Previously, when the repo rate increased, banks would extend the tenure of customers’ home loans instead of increasing their EMIs. Now, there are restrictions on this practice. For this reason, banks will need their customers’ prior consent. People will have the option to convert their loans to a stable interest rate or a floating rate.

We pride ourselves on our comprehensive knowledge of the real estate market in areas like Mumbai, Navi Mumbai, Thane, as well as surrounding regions such as Karjat, Neral, Vangani, Badlapur, among others. Utilizing this knowledge, we aim to provide our customers with the best available options. Contact MakaanBhai.com now for a secure transaction in your home. We, at MakaanBhai.com, are the top property advisors in Mumbai, offering zero brokerage fees, with our experienced professionals dedicated to guiding you through the entire process.

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Buying a house or a car and taking home or car loans has become common these days. Additionally, people often take personal loans to fulfill various needs. Whenever you take a loan, you have to pay the EMI on a designated date, or else penalties are levied by the bank. However, there are times when paying the EMI becomes difficult.

If you ever face a situation where you are forced to bounce the EMI due to unforeseen circumstances, don’t worry. In such a scenario, take these 4 essential steps so that it doesn’t affect your CIBIL score, and you don’t face any problems in the future.

Meet the Bank Manager – In this regard, retired bank officer A.K. Mishra suggests that if you haven’t done so intentionally and your EMI has bounced due to sudden difficulties or adverse circumstances, you should first go to the branch where you took the loan. Meet the manager there and discuss this issue. Explain your problem and assure them that such a situation won’t arise again. If your case is valid, the issue can be resolved easily. Even if the bank imposes a penalty, it might not be too severe for you to handle.

Discuss with the CIBIL Score Representative – If you’ve bounced installments continuously for three months, your CIBIL score might be affected because the bank manager sends a report to CIBIL regarding installments bounced for three months. However, if only one or two installments have bounced, talk to the bank manager to pay those installments and request them not to send a negative report to CIBIL. Also, assure them that it won’t happen in the future. A low CIBIL score might cause trouble when you apply for a loan next time.

Apply for Holding EMI – If your problem is significant and you feel unable to pay the installment for some time due to your compulsion, you can request the manager to hold the installment by explaining your situation. After some time, when the funds are arranged, you can make the payment. This will provide you with some relief during difficult times.

Option for Arrear EMI – If your salary is delayed or you are unable to arrange funds for the EMI by the specified date and as a result, EMIs are bouncing, you can discuss with the manager for arrear EMIs. The due date for installment payments is usually at the beginning of the month, known as advance EMI. Most loan applicants are given the option for advance EMIs. However, if you prefer, you can also opt for arrear EMIs, where you pay your installment at the end of the month.

If you need further assistance or information about real estate in Mumbai, Navi Mumbai, or surrounding areas like Thane, Karjat, Neral, Vangani, Badlapur, among others, feel free to reach out to MakaanBhai.com. We, MakaanBhai.com, pride ourselves on being the leading property advisors in Mumbai, offering zero brokerage fees and dedicated professionals to assist you throughout the process.

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If you’re eager to buy your dream home soon after a recent loan settlement, your dream might be a bit farther away. After all, obtaining credit becomes slightly difficult after loan settlement. Therefore, if you require a home loan, you might need to wait a bit longer. But why is this so? And are there any provisions regarding how many days after loan settlement you can take a home loan? Let’s delve into this in detail.

What is Loan Settlement?

Suppose you’ve taken a loan and, due to some reason, are unable to repay it according to the original terms and conditions. In that case, you approach your bank or lender for options. Your bank may offer you an option to settle your loan account by making a one-time payment. The outstanding amount you need to pay, i.e., the amount you have to clear, should be less than the total outstanding. Once you pay this amount, your loan will be considered ‘Settled Debt.’ Please note, it won’t be a closed account but rather a settled one.

The tag of your settled loan can remain on your credit report for up to seven years. During this time, whenever you apply for a loan, credit card, or any other form of credit, the lender will consider your loan settlement status while deciding on loan approval.

Can You Purchase a House with a Settled Loan?

If there’s a tag of a settled loan in your report, it doesn’t mean you won’t get a loan at all. Yes, it might not be easy, but it’s not impossible. Several other factors will determine if and when you can get a loan. For instance, there might be some conditions or requirements from the bank that you need to fulfill. By meeting these criteria, you can decide whether you’ll be able to purchase a home.

1. Credit Rating/Score: To get a home loan, your credit score should be above 650. Initially, your credit rating will be checked. Since loan settlement can affect your report negatively, you might need to rectify it first.
2. Debt-to-Income Ratio: The bank will also check your total monthly income and how much of it goes into repaying debts. For loan approval, your DTI should be less than 36%.
3. Job/Employment: Banks also assess your income source and its stability. Usually, they prefer applicants who have been employed for at least two years.

If you need further assistance or information about real estate in Mumbai, Navi Mumbai, or surrounding areas like Thane, Karjat, Neral, Vangani, Badlapur, among others, feel free to reach out to MakaanBhai.com. We, MakaanBhai.com, pride ourselves on being the leading property advisors in Mumbai, offering zero brokerage fees and dedicated professionals to assist you throughout the process.

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Buying a home is a significant achievement for the middle class, particularly for those working professionals who manage their household expenses with a salary ranging from 60,000 to 70,000 rupees per month. Such individuals mostly buy a house or flat by taking a home loan. However, paying the monthly loan EMIs often becomes a substantial part of their salary. Home loans usually have a long tenure, leading to a prolonged financial burden, resulting in frequent budgetary issues and financial stress at home. This scenario is a common tale for many households.

But if you purchase a house with complete planning and calculation, your need for a home will be met, and you’ll comfortably fulfill all your household requirements. Financial expert Deepti Bhargav suggests that everyone, especially working professionals, should adopt the 3/20/30/40 formula while buying a house or flat. Following this formula ensures that even after purchasing the house, there won’t be excessive pressure on the family, and the household budget won’t be disrupted.

Understanding the Formula:

The ‘3’ implies that the cost of the house you intend to buy shouldn’t exceed three times your annual income. For instance, if your annual income is 10 lakh rupees, you can afford a house or flat worth 30 lakh rupees.

The ’20’ refers to the tenure of the loan. A middle-class individual generally requires a loan for such substantial expenses. Although a shorter loan tenure is better, fixing the loan tenure to a maximum of 20 years ensures that the EMIs don’t become burdensome. Don’t extend it beyond that.

The ’30’ indicates the EMI, which shouldn’t exceed 30% of your earnings. Suppose you earn 70,000 rupees per month; your EMI should ideally not surpass 21,000 rupees.

The ’40’ pertains to the down payment. Whenever you buy a flat, aim to pay at least 40%. By doing so, you’ll have to take a smaller loan, which can be repaid in smaller installments over a shorter period. For example, if your annual income is 10 lakh rupees and you’ve purchased a flat worth 30 lakh rupees, you should ideally pay around 12 lakh rupees as a down payment. Consequently, you’ll only need a loan of around 18 lakh rupees. This situation would lead to a manageable EMI that you can easily repay.

Calculating EMI on an 18 Lakh Loan:

If you’re taking a home loan of 18 lakh rupees from SBI, with an interest rate of 9.55%, and considering a tenure of 15 years, the EMI will be around 18,850 rupees. For a tenure of 20 years, the EMI will be around 16,837 rupees. This approach will simplify all your tasks.

If you need further assistance or information about real estate in Mumbai, Navi Mumbai, or surrounding areas like Thane, Karjat, Neral, Vangani, Badlapur, among others, feel free to reach out to MakaanBhai.com. We, MakaanBhai.com, pride ourselves on being the leading property advisors in Mumbai, offering zero brokerage fees and dedicated professionals to assist you throughout the process.

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Owning a dream home of your own is a common aspiration for many. However, purchasing a house without a loan seems impossible for the average person because such a significant amount is not readily available to everyone. Therefore, you take a loan from the bank to buy a house or a flat. This loan lasts for 20 or 30 years and costs more than half of your life to repay.

According to Reserve Bank’s statistics, in March 2023, people had home loans worth ₹19,36,428 crore, which is increasing at an approximate rate of 15% annually. When repaying the home loan, it’s important to consider certain things when the time comes for the last installment. If you do not pay attention to these things after closing the loan, you might face many problems in the future.

Let’s find out which important tasks occur after completing the last installment of the home loan:

Requesting Your Original Documents from the Bank

Firstly, check if any of your original documents are held by the bank. Before taking a loan, banks keep some of your documents for security. These include essential documents like loan agreements, sale deeds, etc.

Update Property Records

When your home loan is closed, update any paperwork related to your filing and rejection with the bank.

Request Post-Dated Checks from the Bank

When taking a loan, banks issue post-dated checks from your account. So, if you have completed the loan, don’t forget to ask the bank for those checks back, as they can use these checks to recover their money if EMI payments fail.

Take a ‘No Due Certificate’ from the Bank

Make sure there are no remaining dues. It is essential to take a ‘No Due Certificate’ from the bank after repaying the home loan.

Important information to include in this certificate: Borrower’s name, property address, loan account number, loan amount, loan initiation date, and the loan repayment date.

Transfer the Bank’s Rights from the Property

When you take a home loan from the bank, they have a right to your property until the loan is repaid. This right is called a lien. The bank protects itself from selling your home in the future. Therefore, it is important that after closing the home loan, you must take your property’s rights back from the bank. For this, you will need to visit the bank along with the branch manager.

Updated Non-Encumbrance Certificate

Every bank has a legal advisor. After understanding the technical details related to the land and individuals, legal advisors prepare a report. These documents contain details of all financial transactions related to your property, such as when the property was sold, to whom, and at what price. These documents also mention when the loan was taken and for how much. It is important to note that after closing the loan, you need to request an updated certificate from the bank, which includes details of your repayment from the first to the last payment.

Update Your Credit Report

Many times banks do not inform credit companies about the closure of their loans, so your closed home loan still shows as active on your credit report. This can negatively affect your credit score. Therefore, it is important to update your credit report after closing the loan.

If you have completed all these tasks after closing your home loan, now you need to keep all the documents received from the bank and the registrar’s office organized and safely stored. Keep both hard and soft copies. After organizing all your documents properly, you can now live comfortably without any worries.

We take pride in having comprehensive knowledge about the real estate market in various areas such as Mumbai, Navi Mumbai, Thane, as well as surrounding regions like Karjat, Neral, Vangani, Badlapur, among others. To provide our customers with the best options available, we have utilized this knowledge. Contact MakaanBhai.com now for a secure transaction in your home. We, MakaanBhai.com, are the number one property advisors in Mumbai with zero brokerage fees, and our experienced professionals are committed to guiding you through the entire process.

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You applied for a loan, your CIBIL score was checked, but unfortunately, it was low, and you couldn’t secure the loan. This problem is being observed commonly with 6 out of 10 Indians. So, today’s blog will focus on the CIBIL score. We’ll tell you what this score is, how to improve it if it’s low, and the advantages a good CIBIL score offers to the general public.

What is a CIBIL Score?

Firstly, understand what a CIBIL score is. The CIBIL score indicates your creditworthiness, how efficiently you repay your loans, in other words, your credit history. If you’ve taken a loan and repaid it on time, your CIBIL score will be good. However, if you’ve defaulted on loan payments in the past, your CIBIL score goes down. This could lead to banks scrutinizing your loan applications with skepticism.

What to Do If Your CIBIL Score Is Poor?

The next question is, what can be done if your CIBIL score is poor? If you’ve made mistakes in the past by taking loans and not repaying them on time, there’s no need to panic. You can easily improve your damaged CIBIL score. For this, you’ll need to take a small loan and make sure to pay its EMIs on time. It’s even better if you can pay in advance. Subsequently, your CIBIL score will gradually improve on its own.

The Greatest Benefit of a Good CIBIL Score

A CIBIL score, usually considered perfect between 750 and 900, determines how easily banks grant you loans. Additionally, you’ll not be charged excessive interest rates with a higher CIBIL score. Hence, maintaining a good CIBIL score offers the greatest benefit to individuals.

Several Rules Changed for CIBIL Score

RBI has cautioned NBFIs to inform their customers regularly about their CIBIL scores, ensuring customers don’t delay loan repayments. Alongside, RBI has mandated that all NBFIs resolve any issues within 30 days, failing which they’ll be penalized ₹100 per day.

Subscribe to MakaanBhai.com for accurate information, guidelines, and fair property pricing. We, at MakaanBhai.com, are the leading property advisors in Mumbai, providing complete assistance without brokerage. We pride ourselves on having extensive knowledge about the real estate market in various areas like Mumbai, Navi Mumbai, Thane and surrounding regions such as Karjat, Neral, Vangani, Badlapur, among others. We aim to offer our customers the best available options. Contact MakaanBhai.com now to secure your home investment.

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