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Home buying could be a humongous task and if not planned properly could be a burden as most of the home loans last for the next 30 years and real estate business is a bit tricky.

I can do without a real estate agent

Going to buy a house without a real estate agent could be a big mistake. We as a person don't deal with real estate people on day to day basis and are not aware of the loopholes of this business.

Real estate agents are professionals and will also help you strike the best deal possible in your requirement. Just for the sake of saving 2 % commission, going without a real estate agent could cost you a lot more than you have ever thought.

When you sign up a property through a real estate agent, he will not only help in right property search but can also help you get the right kind of home loan for your property.

I just need enough savings to pay the down payment

Believe me, buying a house is a costly affair and just having enough savings to make the down payment is not enough. There are various other costs associated with buying a house, even when you take a home loan.

There is a processing fee which anyway will get rolled into your loan amount and you don't have to pay it upfront. But while judging your application, a lender would like to see at least a two-month repayment amount in reserve in your savings account in advance, to not reject your application.

Also, your debt to income ratio must be at least 30 % on a monthly basis. One should not go below that. Some lenders prefer it being above 45% to accept and process your home loan application.

This would impact your loan conditions. Having a higher debt to income ratio will call for preferable loan conditions as the lender would like to lend his money to you and would be at lower risk of you being a defaulter.

I can just go to my preferred bank and get a home loan

It's not wise to just consider your preferred bank while thinking of a home loan. You might have an account in some privileged bank who may have loan products at much higher rates as it has got all high-end customers who won't mind paying a bit extra.

Consider other loan options as well. Let the lenders access your application and call you with their offer. This will also help you understand various norms and privileges that are available with a home loan product.

Many people think this will impact your credit history and show you as credit hungry however until all queries are within a period of 30 days, they will be considered as a single query and will not affect your credit score that much.

Having various options will also help you to negotiate on the terms of your home loan with your preferred or chosen lender.

Renting is cheaper than buying

There is one aspect of renting that we often overlook while making this decision. The amount that you pay into rent is just your living cost and do not add up into your asset anywhere.

However, the payments that you are making against your home purchase is slowly building up your asset, your home with it. Also, this home is appreciating in its value over time. The land is the only asset that never depreciates, it always increases over time due to the various developments happening around that area as the population starts to grow in your locality.

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Misconception on the Home Loan - LoansXpert

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Home buying could be a humongous task and if not planned properly could be a burden as most of the home loans last for the next 30 years and real estate business is a bit tricky. Going to buy a house without a real estate agent could be a big mistake.

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Prepayment is a payment made towards your home loan before the due date. That is when one pays an excess amount towards his loan to repay his loan earlier, is called pre-payment of the loan.

It not that simple in the financial world and it takes twirl when you dig deep into it. Let's investigate the norms about pre-payment set by RBI in India and then let's look if pre-payments helping us or not?

Norms About Pre-Payment in India

Prepayment is not that simple as it calls upon pre-payment charges along with it and you need to pay the simple interest on your remaining loan amount for that month above your pre-payment amount.

Hence it is wise to see whether it's beneficial to make a pre-payment or invest that amount elsewhere to have a better yield.

It is said that people who follow a strict financial discipline and could yield higher returns in this dynamic market for them only, investing their pre-payment amount elsewhere is beneficial.

For a common person, it is always good to pay the prepayment towards his home loan and try to be debt free as soon as possible.

There are two kinds of options when you intend to prepay your loan, that is you could reduce your EMI while keeping your tenure the same or you could reduce your tenure while keeping the EMI the same.

Whichever way you wish to lessen your loan burden, it will help. One can very easily use loan pre-payment calculators to help them decide on their savings.

You need to enter your loan amount, tenure in months, rate of interest, the amount of your pre-payments and check your results in terms of EMI saved and/or tenure saved.

RBI and NHB in the past few years have come out with pre-payment guidelines and have struck off the prepayment charges in many cases. You do not need to pay pre-payment fee in below cases -

In case you are an individual and have taken a home loan at a floating rate of interest.

In case your home loan is provided by a Housing Finance Company and you are doing pre-payment through one of your own sources.

In case your home loan is based on a dual rate that is fixed for some time and floating afterward and you have passed the fixed rate duration while doing your pre-payments.

However, in below cases, one need to make the prepayment charges -

If you are not an individual and have taken the home loan in the name of a corporate body.

In case your home loan is taken at fixed rates from the bank.

In case you have a fixed rate home loan from
Housing Finance Company s and making a prepayment by borrowing from another bank or
Housing Finance Company.

Prepayment charges are levied to safeguard the interest of banks and to stop a borrower from getting the loan refinanced through other sources.

In case you decide to pre-pay before the loan tenure, the banks often lose their interest earnings and hence they charge hefty amounts to borrower from stop doing it. However, RBI has set these new guidelines for pre-payment to help borrowers to ease out their loan burden without much foreclosure charges levied on them.

Is Loan Pre-payment good for you?

Let's look at how loan prepayment impacts our loan. Say you have a loan of 30 lakhs for 30 years and you are paying X amount in EMI.

Now most part of this EMI initially is being paid towards the interest amount of your loan and a very little is being paid towards the reduction of the principal of your loan amount.

The interest is then being calculated every month on the remaining principal amount and that interest is deducted from your EMI before reducing your principal amount from the EMI you have paid.

Hence it is wise to say, that while you are paying only the interest amount towards your loan without reducing your principal amount, you would end up paying your loan EMI till eternity. Hence the mantra to be debt free is to reduce your principal amount.

When you may a prepayment in advance, this whole amount of extra prepayment that month is accounted towards your principal amount and your overall loan amount reduces.

Hence now if you were having a loan of 30 lakhs and in the first month of your loan, you make a pre-payment of 2 lakhs, then your loan principal will reduce to 28 lakhs and now your loan interest would be calculated towards remaining 28 lakhs.

Hence, this also empowers your EMIs as now more part of your EMI is being paid towards the principal amount as the interest have been reduced by reducing the principal amount. This will now have a revolving impact on your overall loan.

However, many banks ask you to pay your prepayment in multiples of your EMI. So, if you can't accumulate a good amount at one single instance, then its almost impossible for you to make a loan pre-payment.

However, you can start with a monthly recurring deposit of your extra amount and continue with it until you have an extra EMI amount to be paid as prepayment.

Another way of loan prepayment is by increasing your EMI amount. Just by increasing your monthly installment by INR 500/-, you could save as much as 2.6 lakhs in the overall loan amount and if the loan tenure was 20 years, it will now get paid only in 19 years. This is the true power of loan prepayment.

Conclusion

People often seek the benefits of taking a home loan in terms of tax benefits however by acquiring your own property, you cease to get benefits under HRA deductions.

This is a huge component of your salary. Hence its always wise to take help of a good financial advisor to help you with your home loan options and to calculate your buy and rent decision.

A home loan is a big debt that you need to live for the next 20 to 30 years of your life. It's a big burden on your shoulders for a very long tenure which people often fail to understand at the beginning of it.

It not only allows you to buy something you cannot afford right now but also brings an interest burden with it.

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Prepayment is a payment made towards your home loan before the due date. That is when one pays an excess amount towards his loan to repay his loan earlier, is called pre-payment of the loan. It not that simple in the financial world and it takes twirl when you dig deep into it.

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What is a Home Loan?

A home loan is a loan amount that is taken from a lender, usually a bank or a NBFC, to purchase a home.

Home loan is a secured type of loan where the purchased home is kept as collateral with the lender bank or NBFC until the loan amount is paid back. The loan amount is repaid by paying interests that can be of either a fixed rate or floating rate, depending on your choice.

How to get a Home Loan easily?

A owned house is a dream for most of the individuals residing in metros and big cities. But when it comes to Home Loans, you need to check a lot of things before you actually apply for the Home Loan because you do not want your home loan application to be rejected.

Here are a few check pointers before you prepare to apply for a home loan, which will make your home loan processing easy and smooth.

Identify your budget

Identify the area where you want to buy a house

Identify the property or builder

Check your eligibility before applying for the loan

Check your credit score using Eligibility calculators available online.

Check various banks interest rates and compare the loan details from various banks

Get proper consultancy for Home Loan to identify various hidden charges, processing fees, terms and conditions etc by banks.

Benefits of Home Loan?

While considering opting for a home loan, there might be several questions in your mind that whether this is a correct decision, a huge part of my income would go into loan repayments, what about the property value, what if I decide to quit might property in between, etc.

Here are some of the benefits that come with a home loan, that may help you make your decision about whether to take a home loan or not.

Cheaper than other loans

Tax Benefit

Option to get Refinanced

Long Tenures

Asset that never depreciates

Build a permanent asset and save Rent

Government Policies and Preferred Condition

Home Loan is Cheaper than other loans

When considering other kinds of loans available in the market, home loans are the cheapest loans available. Also, it comes with various preferred options that help you make it cheaper over time.

Like you can make surplus payments towards your home loan amount whenever you have extra money.

This tends to reduce your principal amount on which mostly your interest is calculated.

Thus, by making a surplus payment you reduce the overall cost of your home loan.

This tends to reduce with the increasing frequency of your prepayments like weekly, biweekly, fortnightly and bi-monthly.

You can choose any one option to reduce the overall cost of your loan amount. Unlike other loans, you don't have to pay any penalty for making a prepayment in terms of your home loan. However, it is advised to confirm this option from your lender before entering into the loan agreement.

You avail tax benefits on your home loan principal and interest

Preferable policies for first home buyers by governments As per Income Tax Act, 1961 provision announced in budget 2019.

A home buyer can avail a tax benefit under section 24, section 80C and Section 80EE on both principal amount of his home loan and also interest amount of his home loan, In case there are two joint applicants for home loan then both of them can apply for these tax rebates separately.

As per Section 24, one can have a tax deduction of 2 lakh rupees for interest being paid on his home loan for a self-occupied property.

However, to avail this tax deduction, one must have got the possession letter of his house.

Next, under section 80C, an individual could apply for a tax deduction of 1.5 lakhs on the principal amount for his home loan amount which would also include his registration cost and stamp duty cost.

Then under section 80EE, an additional tax deduction of INR 50,000 is applicable for first time home buyers. Low-interest rates for women applicants

Option to get refinanced

Whatever may be home loan terms while you were buying a house, you always have an option to get it refinanced, If the loan interest rates drop due to various fiscal policies over the loan term.

Refinancing is a blessing for home loan owners, as it allows one to tap favorable market condition over the time period and also helps by reducing repayment burden by changing other loan terms like increasing the repayment duration etc.

Home Loan comes with long payment tenures

This is the only loan that comes with a loan tenure of 30 years for repayment.

Also, one can further increase this tenure by getting his or her home loan refinanced. You don't have to make an enquiry to know your EMI amount, there are several online Home loan EMI calculators available to help you calculate the home loan EMIs and help you in your decision.

These calculators can very well help you calculate your monthly repayment burden and how it changes by changing the tenure and available interest rates.

You possess an asset that never depreciates

House is the only asset that will never depreciate in its value. Though while making a financial decision, you may like to see likely return on that property over time but then the value of your house will never depreciate from its basic price.

This is because a housing location is under constant development both from government initiative and by the efforts from the locales as the place gets more and more individuals residing in the place.

Hence with these ever-increasing development of the place and the surroundings, the house price is always increasing.\

Save your money on paying out rent to build a permanent asset

When you payout a certain amount of money as rent, then you just pay your living cost and you don't tend to gain anything in return. However, over time through your home loan repayments, you are building a permanent asset, that is your house. This could be a future investment, which you could sell and buy a different and more prefer house as you need increases and your financial viability improves.

Your rent amount is always increasing with increasing inflation rates however there are various government policies that help you with favorable home loan interest rates and make your buying decision cheaper than renting it out.

Preferred conditions on Home loan for First Time Buyers

Government of India have enabled various policies to favor people to own their own house. One of them is Pradhan Mantri Awas Yojna, which tends to get you subsidy in your first purchase per your income slab.

Then there are also lower interest rates for women applicants. So if you apply for the home loan with your wife, then you could enjoy these lower interest rates on your home loans.

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A home loan is a loan amount that is taken from a lender, usually a bank or a NBFC, to purchase a home. Home loan is a secured type of loan where the purchased home is kept as collateral with the lender bank or NBFC until the loan amount is paid back.

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Floating Rate of Interest – Overview and Detailed Explanation

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Floating Rate of Interest – Overview and Detailed Explanation

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Floating Rate of Interest - Overview and Detailed Explanation

While making any financial decision regarding loans, it is very necessary to have knowledge about the types of interest rates. There are two types of interest rates named as Floating Rate of Interest and Fixed Rate of Interest.

A wise financial planner must analyze both types of interest rates before taking a financial decision.

What is a Floating rate of interest?

A floating rate of interest is a rate of interest which keeps on changing over the duration of loan tenure due to market conditions.

These loans consist of two parameters known as the prime rate (Base rate) and a floating element. Any change caused in prime rate due to market conditions also causes changes in the floating rates.

Let's take an example,

Mister Harshad wants to borrow 4,00,000 Rs for his business and thus he gets a floating rate loan at 6% Prime rate plus 4 % floating element. Thus his total interest will be 10%.

Any change caused by the base rate will also cause a change in the overall rate.

This means if the prime rate goes up, the overall rate will also go up and if the prime rate goes down then the overall rate will also go down.
The advantage of this to Mr Harshad
After taking the loan, even if the prime rate goes down, he will be saved from overpaying for the loan.
The advantage of this to the bank
The bank will be saved from losing money even if the prime rate increases after giving a loan to Mr Harshad.

How a floating rate of interest is better than a fixed rate of interest?

A fixed interest rate is a rate of interest which remains static over the duration of the loan tenure whereas the floating interest rates keep on changing due to market fluctuations.

A Fixed interest rate will be higher than a floating interest rate.
If the floating interest rate is 8.75% and fixed interest is 9.5%, and you have taken a loan of 3000000 Rs for a tenure of 25 years.

Then,

EMIs to be paid according to the floating interest rate will be 24,664 Rs.
EMIs to be paid according to the fixed interest rate will be 26,211 Rs.

As you can see fixed loans consists of higher interest and hence instead of it if you take floating rate loans, you will be able to save 1,547‬ Rs per month, which will be really effective in the long term.

However, it is very much necessary that the market conditions don't lead to an increase in the floating interest rate as compared to the fixed interest rate for a longer period of time.

Floating rates depend on market fluctuations, hence even if it rises above the fixed interest rates, it might be for a shorter period of time because markets have the power to lower the floating rates below the fixed rates.

If you have set aside a part of your money which you will use to pay the monthly instalments, then the fixed rate interest will be suitable as the interest rate will not go high as it may go in floating home loans due to market fluctuations and thus you will not be forced to compromise your set budget.

Majority of the people take the home loans having the features of floating interest rates however, you must analyze properly regarding which kind of the interest rate loan will be convenient for you. One should study all the pros and cons before making a decision.

Can fixed rate loans be switched to floating rate loans?

It is possible to change a fixed rate loan to a floating rate loan in your loan tenure. However, switching will cost you a small fee which can be anywhere from 1 to 2 %.

It is also possible to change from a floating rate loan to a fixed rate loan.

There is also a provision of changing a higher interest floating rate loan to lower interest floating loan and the charges for changing can be between 0.5% to 1.0%

Even in terms of fixed rate loan, one can switch from higher interest fixed loan to lower interest fixed loan.

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Floating Rate of Interest - Overview and Detailed Explanation - LoansXpert

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While making any financial decision regarding loans, it is very necessary to have knowledge about the types of interest rates. There are two types of interest rates named as Floating Rate of Interest and Fixed Rate of Interest. A wise financial planner must analyze both types of interest rates before taking a financial decision.

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Easily explained Personal Loan guide – PL buyer’s guide in India 2020 | LoansXpert

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Personal Loan is generally an unsecured loan which an individual take to cater to their financial needs. Personal Loan does not require any collateral in India, but to get the personal loan you may have to provide a few mandatory documents to the bank or the financial institution who is providing you with the Loans. Besides, Selecting the right lender who will give low-interest loan is difficult to choose. But you don’t have to worry anymore because our personal loan guide will help you in getting a cheap personal loan. After reading our guide, If you still have questions, you can call us.

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Gone those days when buying a home by taking a home loan was costly. Because now there is Pradhan Mantri Awas Yojana which gives you an option to buy your dream house at an affordable cost.

The "Credit-Linked Subsidy Scheme" of "Pradhan Mantri Awas Yojana" will give interest subsidy on purchase/construction/ extension/ home improvement.

The scheme was launched by Hon'ble Prime Minister Narendra Modi in 2015 and will be beneficial to Economical Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG).

Why take a Home Loan under Pradhan Mantri Awas Yojana?

Following are the reasons that will prove the point of taking a Home Loan under Pradhan Mantri Awas Yojana.
Large subsidy
You will get a good interest rate subsidy. The subsidy will be given on the basis of your income level.
Very beneficial for women and minorities
It is mandatory to have a woman's name registered in the homeownership even if she is not buying the property.

There are also good provisions made in homeownership for the salaried women, widows, transgender people, the disabled, minorities and seniors.

Eligibility for the Pradhan Mantri Awas Yojana

The Ministry of Housing and Urban Poverty has laid down eligibility criteria for the scheme.

The applicant must not have any house in any part of the country in either his/her name or any of his/her family member name.

The Applicant and the family members must not have taken any benefit of other government housing scheme prior to this scheme.

It is compulsory that at least one female should be the co-owner of the property

The location should be according to the 2011 census town classifications.

Following is the PMAY Eligibility Criteria applicable to EWS, LIG, MIG 1 and MIG 2 categories to get the subsidy.
How to apply for the (PMAY)

Following is the process for applying to PMAY for EWS, LIG, MIG 1 and MIG 2.

First Step: Log in to the official Pradhan Mantri Awas Yojana at pmaymis.gov.in.

Second Step: Select the 'Benefits under other 3 components' option by clicking on the 'Citizen Assessment' dropdown.

Third Step: Enter your Aadhar Number and click on the Submit button.

Fourth Step: Now you have to fill details like your name, income, number of family members, residential address, contact number, age of the head of the family, religion, caste, etc.

Fifth Step: When the above details are filled, scroll down the page and enter the captcha code in the box and click submit.

What is the process to avail the subsidy?

After enrolling for the Pradhan Mantri Awas Yojana Scheme, you have to select a lender. LoansXpert will assist you in selecting the most suitable lender for you.

After approval of the application by the lender, the loan amount will get deposited in your account. It is the lender that will claim the subsidy on behalf of you from the government.

You don't have to worry about the initial EMIs which you were paying at the normal rate because you will get compensated for it after the government approves the application.

For the first few months, you have to pay the EMIs at the normal interest rates. Your EMI cost will decrease only after the government approves the application sent to it by the lender on behalf of you.

Features

The major feature is the interest rates that below four categories will receive.
Other features consist of

Females applications are given the major preferences

The tenure of the scheme is 20 years.

Senior citizens and the differently-abled persons will get first preferences for ground floor flats.

The scheme also focusses on the housing requirements of slum dwellers.

Construction of the houses will be carried out by eco-friendly materials and technology.

The scheme covers all the urban areas of the country.

Beneficiaries

Following are the beneficiaries of the Pradhan Mantri Awas Yojana

Husband, Wife, Unmarried sons and/or unmarried daughters.

Women of any caste and religion

Economically Weaker Section (EWS)

Lower Income Group(LIG) members

Middle Income Group(MIG 1& 2) members

Scheduled Castes (SCs)

Scheduled Tribes (STs)

What is the maximum subsidy you can claim under (PMAY)

Following is the maximum subsidy that is given to the EWS, LIG, MIG 1 and MIG 2 categories.

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Why take a Home Loan under Pradhan Mantri Awas Yojana - LoansXpert

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Gone those days when buying a home by taking a home loan was costly. Because now there is Pradhan Mantri Awas Yojana which gives you an option to buy your dream house at an affordable cost. The "Credit-Linked Subsidy Scheme" of "Pradhan Mantri Awas Yojana" will give interest subsidy on purchase/construction/ extension/ home improvement.

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Why take the loan in Home Saver account?

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Why take the loan in Home Saver account?

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Isn't it would have been wonderful if there was a way to reduce interest amount on the home loan which you have taken already?

Well, our banking system does provide a way through which you will be able to pay less interest amount than before.

Here is everything which you should know about the home saver account.

What is the Home Saver Account?

Home saver loan account is an account where you can put your surplus cash that can be used to reduce your liability. In this, a current account will be linked to your home loan account.

Each bank has different names for their home saver account. Following are some of the other names of Home Saver Account.

MoneySaver Account

MaxGain Account

Smart Home Account

Home Loan Interest Saver Account

Home Credit Account

Home Loan Advantage Account

Smart Save Account

What is Home Saver Loan?

Home Saver Loan is a type of loan which helps you to save interest. In this, if you deposit extra cash in your current account than that amount gets minus from your principal outstanding loan amount for calculating interest.

Hence you will be charged less interest than before. And one more added advantage of this account is that you will be able to withdraw the extra cash whenever you want.

Why take the loan in Home Saver account?

By opting for a Home Saver account, you are able to pay less interest, save tax, and clear your debt faster.

We will see all these three benefits later on. First, let us see how home saver loan works.

How does Home Saver Loan work?

Let's see an example,

Loan Amount: ₹ 30,00,000

Interest rate: 8%

Tenure: 20 years.

Thus, you will have to pay ₹ 25,093 EMI.

Now, due to Home Saver Loan, you deposit your extra surplus cash amount of ₹ 500000 in the account.

So the interest will be charged on ₹ 30,00,000-5,00,000.

Now, the total outstanding principal amount will be ₹ 25,00,000.

Hence you will now have to pay Just ₹ 20,911 EMI. You save ₹ 4,182 per month.

If you don't withdraw the extra ₹ 5,00,000 for at least 1 year, then you will be able to save ₹ 50,184 for a year.

And also you will be able to clear your debt before the stated tenure. Hence you will be saving a lot. Because if you didn't withdraw the amount and kept it like that only, then you would have been able to clear your debt within 16 years approximately.

For whom is the Home Saver Loan suitable?

Home Saver loan is suitable for those who have a flow of extra income now and then. It is suitable for families having more than one salaried member.

It is also suitable for a businessman who has a surplus flow of income throughout the year.

What are the benefits of Home Saver loan?
Interest Saver Account
Above example has proved how you will be able to save interest on your loan amount.
Tax Benefit
Such schemes are free from tax. It is better to clear your loan liability by putting the surplus cash in your current account rather than investing in Fixed deposit account.

The income generated on FDs is taxable and you will also receive fewer returns on it. So to make good utilization of your extra money, you should keep it in a home saver loan scheme.
Clearing the loan liability before time
Due to the prepayment of the interest amount, you will be able to repay the loan amount before the stated duration. This will help you to clear your debt quickly. Also, such schemes don't have prepayment charges.
Home saver account offers the flexibility of withdrawing the amount anytime
You can remove the extra money whenever you want. So if you require the money urgently or for any other purpose then you can withdraw it very easily.

What are the disadvantages of MoneySaver Account
Home saver loans are expensive than regular loans
Home saver loans interest rate can be 0.5 to 1% higher than the regular loans.
Extra money doesn't generate interest revenue
The money in your current account is not used for generating income revenue. It is used to pay interest on the loan you have taken. The extra surplus if put in SIP, then you can earn a good income on it.
Not all banks offer Home Saver Loan
There are only a few banks that offer such a facility. Also, different banks have different eligibility criteria to qualify for the home saver loan scheme.

What is the surplus amount?

The most important thing required to have a Home Saver account is a surplus fund.

The surplus fund is the money that is left after all your compulsory expenditure is meet.

Conclusion

It can be concluded that the Home Saver Loan is beneficial if one has extra cash. However, it is better to take some advice from experts before making a decision. LoansXpert will help you in taking the right decision regarding home saver scheme.

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Why take the loan in Home Saver account? - LoansXpert

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Isn't it would have been wonderful if there was a way to reduce interest amount on the home loan which you have taken already? Well, our banking system does provide a way through which you will be able to pay less interest amount than before.

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How to get Personal Loan approved easily?

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How to get Personal Loan approved easily?

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A personal loan is an unsecured loan which is utilized to meet "All-Purpose" requirements.

It consists of meeting your current financial needs like medical expenses, wedding expenses, home renovation expenses, travelling expenses, credit card bills, buying gadgets, etc.

A personal loan application process can get delayed or rejected, if your credit score doesn't meet the bank's requirement. The personal loan approval process can also be delayed because of the following ifs.

If all the required documents are not submitted.

If you don't qualify for the minimum income requirements.

If you don't qualify for the employment requirements.

If you don't check whether the bank allows the personal loan amount to be used for everything or not, because, not all the banks allow the personal loan to be used for everything, so it's better to mention for what purpose you want the personal loan.

If your entered details in the application form are incorrect. Hence, you must check all the details thoroughly before clicking the submit button or submitting the application offline, otherwise, your personal loan application will get rejected.

Following Are The Ways To Get The Personal Loan Approved Easily

Meet Eligibility Criteria

Before applying for the personal loan, please see if all the eligibility criteria are met by you or not. The eligibility criteria are based on age, income, employment, location, credit score, etc.

The age of the salaried employee should be between 21-60 years and so on, Make sure you met each and every criterion before you apply for the personal loan.

The criteria's are different for a self-employed individual and a salaried individual Read our detailed guide for the personal loan to know more about eligibility criteria in detail.

Maintain A Good Credit Score

A good credit score is of utmost importance for getting the personal loan approved quickly. A credit score is based on the following points.

The payment history of the existing loan.

Utilization fo you're previous loan amount as compared to the credit limit. You should use only up to 40% of your credit limit. If you don't do this then your credit score will get affected and as a result, it will go down.

How well you have handled the payments of both secured and unsecured loans in the past on time.

On the number of the basis of your application being accepted in the past. If the lenders in the past rejected your personal loan application, then this will affect your credit score.

A credit score is given from the range of 300-900. The personal loan will be only approved if the score is greater than 700. Generally, the greater the score, the good chance of getting the personal loan with many benefits like low-interest rates is possible for you. Hence, it is very much necessary to maintain a good credit score.

Don't Apply For The New Personal Loan Before Clearing the Pending Loans

If you already have so many loans, then generally the lenders reject your personal loan application. You should not have a loan in your credit history report for at least 6 months before you apply for the new persoanl loan.

Be Prepared With Documents Required to Get a Loan

Be ready with all the documents that will be asked by the bank. If you forget to submit even one document, then your personal loan approval process will be halted. This will lead in delaying of getting the personal loan amount from the lender.

Be Reasonable While Deciding the Required Loan Amount

Approval of the personal loan amount is depended on your income statement. If your repayment capacity is less as compared to the personal loan you asked for, then there are chances of your personal loan application getting rejected by the lenders.

So it is very much necessary to analyze your repayment capacity before applying for the personal loan.

Do Not Send Out Multiple Personal Loan Applications

If you send multiple personal loan applications, then that will affect your credit score. Remember this, the number of times your personal loan application is rejected, the number of times your credit score will go down. Also, the banks will be suspicious whether you will select their bank or another bank, thus this will ultimately lead to rejection of your personal loan application.

Make A Perfect Personal Loan Application With LoansXpert

The personal loan approval process can be complicated if you go by doing it by yourself. So, LoansXpert has a team of experts that will help you in getting a personal loan with a low-interest rate very easily and quickly.

Conclusion

To get the personal loan easily you have to have a good credit score, repayment history, and good financial planning. Also, just don't go rushing to apply for the personal loan, do check the eligibility criteria thoroughly. You must also keep all the required documents ready.

Apply only for the loan amount that will qualify your repayment capacity and have at least 6 months gap before applying for a new personal loan. Also, be patient and don't apply to multiple lenders at a time as it will only increase the chances of your personal loan application getting rejected.

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How to get Personal Loan approved easily - LoansXpert

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A personal loan is an unsecured loan which is utilized to meet "All-Purpose" requirements. It consists of meeting your current financial needs like medical expenses, wedding expenses, home renovation expenses, travelling expenses, credit card bills, buying gadgets, etc. A personal loan application process can get delayed or rejected, if your credit score doesn't meet the bank's requirement.

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Marginal Cost of Funds based Lending Rate (MCLR) 2020

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Marginal Cost of Funds based Lending Rate (MCLR) 2020

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Marginal Cost of Funds based Lending Rate (MCLR) 2020

RBI sets a minimum interest rate below which a lender is not allowed to lend. Interest paying based on MCLR is applicable to individuals who have taken loan after 1st April 2016.

The individuals who have taken a loan before 1st April 2016, those can continue paying interest based on the base rate. However, you do have a choice to switch from base rate to MCLR.

The MCLR is lower than the base rate by 5 to 50 basis points because of the influence of the RBI's repo rate.

Current MCLR, Base Rate of All Banks in India - October 2020 ( Tenure wise MCLR )

What Is MCLR?

The Reserve Bank of India introduced MCLR in the year 2016.

MCLR is a replacement for the 2010 year's base rate.

MCLR acts as a reference point to banks for determining the minimum home loan rate of interest.

Even though the home loan has to be provided mandatorily on the basis of MCLR interest rate, still there can be some exception made here only in some extreme conditions and that too only and only if the RBI allows it.

Objective Of MCLR

1. To bring transparency in setting up of interest rates so that neither the lender nor the customer suffers because of unfair interest rates.

2. Before the introduction of the MCLR, the process of changing the interest rate based on the change of the repo rate took time. But today the interest rates are adjusted as soon as the repo rate gets changed.

3. The MCLR gives an opportunity for all the lenders to grow in the long term.

4. The lender's competitive strength increases.

MCLR Rate In Home Loan?

1. Any change in the repo rate and fund costs of the bank will affect the Marginal Cost of fund based Lending Rate.

2. If MCLR increases, your floating rate based interest percentage on home loan will also increase. Similarly, IF MCLR decreases, your floating rate based interest percentage on home loan will also get decreased.

3. Changes in MCLR doesn't affect the Equated Monthly Instalments but it affects the tenure of the home loan.

Difference Between MCLR and Base Rate

Meaning
MCLR acts as a reference rate to banks for determining the minimum home loan rate of interest that they can charge to customers.

A base rate is an interest that is charged by the lender to the customers applying for the loan.

Factors that determines the rate
CRR (Cash Reserve Ratio), Negative carry on Cash Reserve Ratio,marginal cost of funds, operating costs, and tenor premium.

Profits, Bank Deposit Rates, Bank Costs, Operating expenses, etc.

Loan Tenure
MCLR is different for different loan tenure.

Base rate can change quarterly in a loan tenure.

How to calculate MCLR?

Following is the formula for calculating MCLR

Marginal cost of funds = Marginal borrowing cost x 92% + return on the net worth x 8%

The MCLR Depends on
The marginal cost of funds
It consists of the sources of the funds of the lenders.

The lender's sources consist of savings accounts, fixed deposits, foreign currency deposit, current accounts, equity retained earnings, infused earnings, etc.
Negative carry on Cash Reserve Ratio
Banks have to compulsorily maintain some cash with RBI. The ratio of the cash amount that is mandatory to reserve is 4%. Such idle cash doesn't attract interest in it. And hence the cost of such funds is charged from the individual who takes the loan.
Tenor Premium
The interest rate is reset according to the period left for the loan repayment.
Operating costs of the bank
It is the expenses related to the raising of the funds.

How To Convert Base Rate Home Loan To MCLR

There are some banks that charge a fee for converting base rate home loan to MCLR. The conversion depends on the factors consisting of the benefits that you will receive and the cost that you will have to pay if any.

Impact Of MCLR On Home Loans

Home loans have two types of interest rates known as the floating interest rate and fixed interest rate. Fixed interest rates are fixed for the entire tenure of the loan. Whereas floating interest rates are flexible.

Now MCLR is only possible if you are having a floating interest rate type of home loan.

So any positive or negative effects of MCLR rates are passed to only those who have taken floating interest type of home loan after 1st April 2016.

RBI Guidelines About MCLR

1. It is mandatory for all the banks to publish MCLR for different tenures.

2. MCLR is only allowed to floating rate type of interest.

3. The interest rate will only be changed on the assigned reset date.

4. MCLR computation is based on deposits, borrowings, Negative carry on Cash Reserve Ratio, Operating costs of the bank, Tenor premium.

Prior to the introduction of the MCLR, the base rate was used to determine the interest rates to be charged on loans to customers. There was no one methodology to charge interest rates because many banks used to follow either a method of the average cost of funds or blended cost of funds or marginal cost of funds. Today MCLR has brought great transparency in the procedure of determining interest rates.

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Marginal Cost of Funds based Lending Rate (MCLR) 2020 - LoansXpert

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RBI sets a minimum interest rate below which a lender is not allowed to lend. Interest paying based on MCLR is applicable to individuals who have taken loan after 1st April 2016. The individuals who have taken a loan before 1st April 2016, those can continue paying interest based on the base rate.

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A personal loan is an unsecured type of loan that is given by banks for personal expenses like home renovation expenses, holiday expenses, credit card bills, medical expenses, wedding expenses, etc. In this kind of loan, one doesn't have to give anything as collateral security. Below is the list of updated personal loan interest rates 2020.

Personal Loan Interest Rates in India

Personal Loan Interest Rates Comparison in India 2020
Personal Loan Guide
Here are the steps to getting a personal loan.

Step 1: Fill up the application form either online or by visiting the branch office. Along with the application form, you have to give 2 passport-sized photographs and the required documents.

Step 2: After receiving the application, your credit score will be checked.

Step 3: Now the submitted documents will be verified by the verification team. They will send a representative to your home for checking the address. They will also send a representative to your office to check whether you are really working there or not.

Step 4: If the verification team gives a green signal for the further process, then the processing team will make the loan agreement having all the terms and conditions which you will be required to sign. After signing of the agreement, the loan amount will be credit in your account within 24 hours.

Documents required

Government Approved Identity Proof like Voter's ID, Passport, Driving License, and Pan Card

Government Approved Identity Proof like Voter's ID, Passport, Driving License, and Pan Card

Address Proof like ration card, electricity bill or your passport

Address Proof like ration card, electricity bill or your passport

Last three months of the bank's statement

Last three months of the bank's statement

Employment certificate

Educational documents

Last three months' salary slips

Business Continuity documents

ITR fillings

ITR fillings

Factors affecting interest rates

Following are the factors that affect interest rates on Personal loans.
CIBIL Score
If you are having a CIBIL score of 750, then you can get the personal loan with ease. Also if you are having a score of more than 750 like say 800, then you can get the personal loan at a low-interest rate. The reason for this is that having a good CIBIL Score indicates your good repayment capacity. Hence the banks are ready to give loans to such individuals.
Income
As nothing is required to be kept as collateral for getting the loan, the bank will grant a low-interest rate loan depending on the stability of your income. If you are having a good source of income and if that income is high then you can get the low-interest rate personal loan very easily.
Company Category
The company where you work at also determines your success of getting a low-interest rate personal loan. The bank has divided the companies into 5 categories namely-

Category A- It consists of top 1000 companies.

Category B- It consists of multinational companies

Category C- It consists of smaller companies

Category D- It consists of companies having a strength of 100 employees.

Generally higher the category, easier it will be to get a personal loan having a low-interest rate.
Bank's Old Customer
If you are an old customer of the bank then you might get a personal loan at a low-interest rate. They do this so as to retain their old valued customers.

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Personal Loan Interest Rates 2020 - Updated - LoansXpert

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A personal loan is an unsecured type of loan that is given by banks for personal expenses like home renovation expenses, holiday expenses, credit card bills, medical expenses, wedding expenses, etc. In this kind of loan, one doesn't have to give anything as collateral security.

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Due to digitization, loan processing in India has become easy. Generally, the banks have the following procedure.

Step 1: Fill the application form along with the required documents. This is done so as to verify your documents and also to see whether you will be able to pay back the loan amount.

Most of the bank's representatives for your convenience will visit your home to collect the documents.

Step 2: Banks will require you to pay a processing fee. This fee is charged for the maintenance of your loan account.

Step 3: Sometimes bank might call you to their branch for face to face discussion.

This is done to collect more information about you.

Step 4: Bank will verify your documents. It might take 1 to 2 days.

Step 5: If the bank finds that all requirements are met, they will sanction the loan. A sanction letter will be sent to the customer. The following details will be checked.

Step 6: If the loan is approved, an offer letter will be sent stating the loan amount that is approved, the Interest rate on it, type of interest rate, loan tenure, modes of repayment and terms and conditions.

Step 7: An acceptance letter will be signed. This letter has to be signed for the bank's record.

Step 8: Here all the details regarding the property will be checked by the bank. You have to submit all the property-related documents to the bank

Step 9: After the submission of the property documents, the bank will do a legality check.

The bank's lawyer will check the documents to make sure that it doesn't have any illegality in the property.

Step 10: The bank will do a thorough check of the site. They will find out the valuation of the property.

Step 11: After the loan agreement has been signed the loan will be disbursed

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Due to digitization, loan processing in India has become easy. Generally, the banks have the following procedure. Step 1: Fill the application form along with the required documents. This is done so as to verify your documents and also to see whether you will be able to pay back the loan amount.

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Loan against property is a secured type of loan which is provided to you by keeping your property as collateral with banks and financial institutions. Even if the property is kept as collateral you can still use it.

Loan against property is also called a mortgage loan and is useful to fund your business or meet your personal needs. Generally, around 60 to 70% amount of the market value of the property is given to the borrower as a loan.

Loan Against Property in Pune

There are many banks and financial institutions that offer loans against property in Pune. Many lenders have different interest rates, processing fee, EMI bounce charges, statement charges, and foreclosure charges, etc. Along with that, there is a complicated documentation process. So you might get confused regarding which lender's loan to choose.

LoansXpert will help you in choosing the right lender which offers the most suitable Loan having low-interest rates with no hidden cost. With LoansXpert you need not worry about the complicated documentation process as we will simplify it for you. And as we are in this industry since a long period of time, be assured that our experiences and expertise will give you the best solution regarding your Loan against property requirements.
Affordable Interest Rate
As the property is kept as a mortgage, the interest rate charged to you will be lower as compared to the personal loan.
No Prepayment charges
If you pay your loan amount before the due date then no prepayment charges will be taken from you. But for availing this benefit, the loan should be sanctioned at a floating rate of interest. And neither the borrower or a co-borrower should be a corporate entity or a firm.
Easy to get
As this loan is a secured type of loan, many banks and NBFCs will sanction loan easily to you.
Lower EMI
Generally, these types of loans have a longer tenure of up to 15 years. The longer the tenure the lower the rate of EMIs will be charged.
Quick loan disbursal
LoansXpert will help your loan to be disbursed quickly.

How to apply for Loan Against Property in Pune

There are two ways to apply for a loan against property:
Offline:
You can apply offline by physically visiting the lender with all the documents required.
Online:
You can also apply online by filling up the online application form and uploading the required documents. After doing this the concerned person will contact you.

If you don't want to get involved in the hassle of the loan application procedure, then LoansXpert will take care of all of your loan application processes.

How to avail the lowest rate of interest on LAP loans in Pune

Following are some of the determining factors for availing the lowest rate of interest:
CIBIL Score:
If you are having a good credit score then you will be charged low-interest rates. A CIBIL score is checked to see if you will be able to pay the loan amount or not. If you are having a good credit history, then you will easily get a loan having a low-interest rate than those who don't have a good credit score.
Down payment:
If you pay a higher down payment then you will be charged low-interest rates.
Loan Term:
If the duration of the loan is longer then you will be charged low rate EMIs. however, if the term is short then the interest rates will be low but the monthly payments will be high.

Besides the above factors, property location and loan amount also determine the rate of interest to be charged.

Eligibility criteria for Loan Against Property in Pune

Here are the eligibility criteria that are required to be fulfilled for getting the LAP approved:

1. The loan can be taken against self-owned or vacant or rented residential, commercial, and industrial properties.

2. The applicant's age must be between 18 to 70 years.

3. The Employee should be earning a salary of Rs 25,000 or above per month.

4. The Employee must have work experience of 3 years and above.

5. Self Employed must have a stable business for over 5 years and above.

6. A good CIBIL Score is a must for getting the loan amount.

7. The property title should have legality and technicality clearances.

8. The applicant must have a Telephone or a postpaid mobile.

The required documents for Loan Against Property

Different lenders require different documents according to one's employment type. Following are some of the common documents that are required to be submitted:
List of Documents Government Approved Identity Proof Address Proof

1. Ration card

2. Electricity bill, not more than 3 months old

3. Passport

Proof of Income

Last 6 months' Salary Slips

Increment or Promotion letter

3 years IT returns

Form 16

Letter of Employment

last 3 years CA audited financial statements consisting of the Balance sheet and Profit & Loss account statement.

Bank Statement
Last 6 months of the bank statement

Latest 1-year bank statement for non-salaried professional
Educational Documents
Educational certificate like Bachelor of Law certificate for lawyers.
ITR Fillings
ITR Fillings of the previous 2 to 3 years.
Business Proof

Sales deed

Tax registration copy

Company registration license

3 years old Saral copy

Loan Against Property Interest rates by well-known banks in Pune 2019

Before choosing a lender for getting LAP, it is necessary to compare interest rates offered by various banks. There are many lenders offering different interest rates on LAP. We have shortlisted some of the best lenders in Pune. Following is the list of ten lenders in Pune providing LAP.

FAQs about Loan Against Property
Who can apply for a loan against property?
A Salaried and Self-employed individual who is a resident of India can apply for the loan. You can apply individually or jointly. The Co-applicant can be close relatives, partnership firms, or even a private limited company.
What are the processing fees for LAP?
Different banks have different processing fees however generally around 1% is charged.
How is the rate of interest on loan against property calculated?
The interest rate on loan against property is calculated on the basis of daily reducing balance method.
Can an NRI get a loan against property?
There are many banks who provide loan against property to salaried NRI persons.
Are there any loan tenure options?
Different banks offer different loan tenures. You have the flexibility of choosing the best that suits you. The tenure ranges from 5 to 15 years. The term should not extend beyond 65 years of your age or the retirement age, whichever is earlier.

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Loan against property is a secured type of loan which is provided to you by keeping your property as collateral with banks and financial institutions. Even if the property is kept as collateral you can still use it. Loan against property is also called a mortgage loan and is useful to fund your business or meet your personal needs.

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Pune is a cultural capital of Maharashtra and was once the seat of Peshwa of the Maratha Kingdom who built an elegant Shaniwar Wada.

The other fascinating historical buildings consist of majestic Lal Mahal, mesmerizing Vishram Baug Wada, classic Nana Wada, wonderful Mahadji Shinde Chhatri, exquisite Aga Khan Palace, excellent Mahatma Phule Wada, rock-cut Pataleshwar Temple, and many more marvelous creations.

Pune is known as "Oxford of the East". It also has various mesmerizing educational buildings like the Pune University, Engineering college, Fergusson college, Film, and Television Institute of India, Armed Force Medical College, National Defense Academy, and many more great examples cultural heritage of Pune.

Home loan in Pune

Today the city is an IT hub and so it does has great buildings like Infosys Building, Tata Technologies Campus, Eon IT Park, and many more fantastic corporates.

Pune is a combination of Ancient Wadas and Modern buildings and LoansXpert are the consultants which will guide you in taking the most suitable home loan for your dream house.

How to Get Home Loan in Pune:

Everyone in their life wishes to have their own house and that too without depending on anyone else for the funds, so in that case, the home loan will assist you in buying the house you wished for.

You can get a large amount of loan at the lowest interest rates in Pune. The loan amount is required to be repaid by paying Equated Monthly Installments within the set tenure. Generally, the longer the tenure, the low EMI rate would be applicable.

There are many banks providing the cheapest Home loan in Pune that also offers various other features like home loan insurance, Loan approval even before a property is selected and Flexible loan repayment options, etc.

Benefits of Home Loan
EMIs paying is better than rent-paying:
Paying rent will not make you an owner of the house, however paying EMIs will surely make you the owner of the house as the house will be only yours. Also, the EMIs will be cheaper than the rent in big metro cities like Pune.
Enjoy appreciation in the property rates:
The rate at which you buy property today have the fine chances of its value increasing in the future. That means the price of your house will be more than today.
No hassle of prepayment charges:
Prepayment charges will not be applicable if you pay your interest amount earlier than the prescribed date. However, In the case of floating rate home loan, there will be prepayment charges applicable.
Longer Tenure Period attracts low EMIs rate:
As compared to the other types of loans, A home loan period has a tenure up to 30 years. If the tenure is longer then you will be required to pay EMIs at low-interest rates.
Balance Transfer Facility:
There are many home loan providers in Pune that offer balance transfer facility, Hence it is possible to transfer the loan to a different bank where the interest rates are low.

Tax Benefits of Home Loan

There are tax deductions on the principal as well as on the interest to be paid on it.

home loan infographic

According to Section 80C of Income Tax of India 1971 Act, a deduction of up to Rs 1.5 lakhs is allowable for a financial year. And according to the Section 24 B of Income tax of India Act, Rs 2 lakhs of the deduction is allowable on the interest portion. However, tax benefits can only be granted if the construction of the house completed

The required documents for a Home loan in Pune

Here are the common documents that are required to be submitted by the salaried, self-employed professionals.

Document Type

For a salaried employee

For a self-employed person

List of Documents
Government Approved Identity Proof (any one of these)

Address Proof (any one of these)

1. Ration card

2. Electricity bill, not more than 3 months old

3. Passport

Proof of Income (Submit only the required form the list)

1. Salary slips of the last 3 months.

2. Form 16

3. Working certificate from the employer

4. Increment or Promotion letter

5. last 3 years CA audited financial statements consisting of the Balance

6. sheet and Profit & Loss account statement.

7. Business License Details

8. The license of professional practices by doctors, consultants, lawyers, etc.

9. Certificate of Establishment in terms of shops, factories, or any other establishments.

10. Proof of Business Address

Bank Statement
Last 6 months of the bank statement

Property Documents

1. NOC from society/builder

2. Report on the estimation of the cost of construction

3. Property Tax Receipts,

4. Registered Sale Deed, Allotment Letter of Sale from the Builder

5. Maintenance Bills

6. Copy of a building plan or floor plan

7. Receipts of the advance payment done for the purchase of property

8. Occupancy Certificate

ITR Fillings
ITR Fillings of the previous 2 to 3 years.
Bank Statement
Last 6 months of the bank statement

Property Documents

1. NOC from society/builder

2. Report on the estimation of the cost of construction

3. Property Tax Receipts,

4. Registered Sale Deed, Allotment Letter of Sale from the Builder

5. Maintenance Bills

6. Copy of a building plan or floor plan

7. Receipts of the advance payment done for the purchase of property

8. Occupancy Certificate

Other Documents

1. Business profile

2. Processing fee cheque

3. Educational qualification certificate

Eligibility criteria

Following are the eligibility criteria to avail the Home Loan in Pune:

1. You can apply for the loan individually or jointly. The other person should be a family member.

2. The applicant should have a minimum age of 21 years at the time of loan application and not more than 65 years at the end of the loan tenure.

3. The Applicant should have had a job or business for at least 3 years and a minimum of 1 year with your current employer or business.

4. Minimum Annual Income should be Rs 2,00,000, including that of your spouse.

5. The person should have a telephone or a mobile.

Home Loan Interest rates by well-known banks in Pune 2019

There are many banks which offer different interest rates on home loans. We have filtered interest rates of some of the best banks in Pune. Following is the list of ten banks in Pune providing home loans:

How to avail the lowest rate of interest on home loans in Pune

There are many lenders in the market nowadays. Before applying for the home loan you must compare them and it's a headache to compare them all.

If you want to get your dream home without burning all your saving on EMIS. Then Just contact us we will take care of entire loan form that moment.

LoansXpert will study your case and suggest the best plan execution for your home loan. So we can get it disbursed quickly with the best interest rate.

Home Loan In Pune guide

Home Loan FAQs

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Home Loan in Pune | easy approval Home Loans in Pune - LoansXpert

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Pune is a cultural capital of Maharashtra and was once the seat of Peshwa of the Maratha Kingdom who built an elegant Shaniwar Wada. The other fascinating historical buildings consist of majestic Lal Mahal, mesmerizing Vishram Baug Wada, classic Nana Wada, wonderful Mahadji Shinde Chhatri, exquisite Aga Khan Palace, excellent Mahatma Phule Wada, rock-cut Pataleshwar Temple, and many more marvelous creations.

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Pune is called the 'Oxford of the East' as it has the treasure of great institutes and learning in these institutes has educational expenses. You can meet these expenses by taking a personal loan and our advisors will assist you in getting the cheapest personal loan in Pune.

Pune is a city having chivalrous history and was once the nucleus of power of the Maratha Empire. Today it is known as the cultural capital of Maharashtra. And as being a cultural capital, there are many cultural festivals celebrated in Pune. A personal loan can help you in celebrating these fests by meeting your festival expenses.

Pune never fails to update consistently, today it has lots of IT companies and is performing efficiently in manufacturing, automobile, Infrastructure, and research sectors. And hence as you become a salaried employee in these sectors, then doors for you will open wide to apply for a personal loan to meet your medical expenses.

Hence, If you want to live a perfect life in Pune, then there will be some unavoidable expenses to meet. So to cover these expenses you can take a personal loan. There are tremendous numbers of banks who will offer instant personal loans in Pune but with different interest rates. So it might become quite difficult for you to choose the right one. But you don't have to worry about that because we the LoansXpert are experienced loan advisors who will guide you in selecting the appropriate personal loan.

Purpose of Personal Loan

How to Get a Personal Loan in Pune?

Getting an instant personal loan in Pune is not a complicated process and the offers are available at competitive rates because of the availability of a large number of creditors. You can get loan starting from 25,000 Rs to 25 lakhs for a tenure of 12 months to 60 months.

Mostly, Banks consider the below factors while deciding the rate of interest for your personal loan.

1. Your credit score (Read How to improve & maintain your credit score)

2. Income

3. Payment track record

4. Work experience

5. The company you are working with

6. Work experience

7. The company you are working with

8. Your age

9. Homeownership

10. Past financial track record

Generally, a good credit history will be significant in providing you with the discounted cheapest personal loan in Pune.

If you are looking for a better offer on your personal loan or if you want a personal loan in Pune urgently then you can contact us for any assistance or inquiry. Our personal loan advisors will assist you in selecting a lender having a low-interest rate.

Benefits of Personal Loan

Personal loans are easy to apply and faster to get, following are the benefits of Personal Loan for you.

Healthy Interest Rates

The interest rate on a personal loan is low as compared to the interest rates on credit cards.

No Collateral Required

As personal loans are unsecured loans, they do not require any collateral security in any form. So these are very much useful for you if you can't or don't want to raise any assets as collateral.

Diversified Usage

Many personal loan providers in Pune offers loans for a variety of usage like the following.

Home renovation expenses

A holiday abroad

Buying luxury items

Clearing off your debt

Paying credit card bills

Meeting medical expenses

Covering wedding expenses

To cover educational expenses

Buying gadgets and any unforeseen expenses.

No Need to have multiple credit card accounts

Multiple credit card accounts are difficult to manage than a single personal loan account because they have different spending limits, payment due dates, interest rates, and issuer policies.

Flexibility to use

There is no restriction on the usage of funds by you because you are free to use the loan in whatever way you want to use it. For example, if you are applying for an auto loan, then you are restricted to use the fund to only buy the vehicle and nothing else.

Besides the above advantages, a personal loan will also help you in improving credit score ratings.

Personal loans in Pune

Documents required for Personal Loan in Pune

Getting a personal loan in Pune without documents is a myth because it is mandatory for you to submit the required documents. Following are the documents that you must submit to get an instant personal loan in Pune.

Document Type

For a salaried employee

For a self-employed person

Government Approved Identity Proof (any one of these)

Address Proof (any one of these)

1. Ration card

2. Electricity bill, not more than 3 months old

3. Passport

Bank Statement

Last 3 months of the bank statement

Employment certificate

Certificate from the firm where you are currently working.

Salary Slips

Last 3 months of salary slips

Bank Statement

Last 6 months of the bank statement

If you still have doubts regarding the documents required for getting an instant personal loan then you can contact us. Our personal loan advisors will surely clear your doubts.

Eligibility criteria for Personal loan

Following are the eligibility criteria of various personal loan providers in Pune concerning demography, loan amount, loan interest, loan tenure, Loan Processing Charges, Prepayment/ Foreclosure Charges for getting a quick personal loan in Pune for a salaried employee, and self-employed person.

Eligibility criteria

For a salaried employee

For a self-employed person

Personal Loan Interest rates by well-known banks in Pune 2019

There are many personal loan providers in Pune which offer different interest rates. Our team of personal loan advisors have filtered out interest rates of some of the best personal loan providing banks in Pune. Following is the list of ten banks in Pune.

How to avail the lowest rate of interest on personal loans in Pune?

There were days when you were required to contact multiple lenders to get the information regarding interest rates, tenures, and processing fees. But now you don't have to worry to contact those different loan providers in Pune because our team of personal loan advisors at LoansXpert will help you in selecting the best lenders offering the lowest rate of interest on personal loans. Apply for an instant personal loan now.

General FAQs Personal Loan
What is Pre-closure?

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Personal Loan in Pune | Get Instant Personal Loan in Pune | Loan Advisors

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Pune is called the 'Oxford of the East' as it has the treasure of great institutes and learning in these institutes has educational expenses. You can meet these expenses by taking a personal loan and our advisors will assist you in getting the cheapest personal loan in Pune.