Project Name:NBR Classic
Accessible Roads, Well Developed Residential Atmosphere with verdant landscape of serenity. The environment is fuelled with lots of open area allowing soothing air all around, the pictorial view of adjacent residential units brings you the perfect blend of luxury lifestyle with commercial affordability.
Project Name:NBR Classic
Multistorey Apartments
Area Range 929 - 1223 sq ft
Price 3000/Sq ft.
Location Begur Road,Bangalore
Bed Rooms 2 BHK
Once you think of buying yourself a house and go
looking for that perfect dream house, only to find out that you are unable to
finance your new house at the moment.
And you realize that you really want that new house. You might at this point consider the option of taking a bridge loan. A bridge loan is the
scenario wherein if you have enough equity in your present home, the bridge
loan will allow you to avail of a loan so that you can make a down payment and
buy your new house. The only catch here
is that the interest rates on the bridge loan are much higher than those on the
home loans. Another thing to consider is
that it is short-term loan, and there are also costs and fees involved. Therefore you might do better for yourself,
if you consider applying for a home loan. The procedure is simple and of course you
have to meet a certain eligibility criteria.
Once you have identified the house that you want to purchase, you can go
ahead and approach any financial institution dealing or disbursing home loans.
Though applying for a home loan may seem like a
very difficult task, it definitely need not be that way. Given below are some Home Loan Basic that you
need to know before you go about applying.
The first step to getting a home loan involves filling up the
application form of chosen financial institution along with the required
documents. Do remember that you will
need to pay a one time processing fee at this stage. You will also require some important
documents to get through with the loan processing stage. In case your are an employed individual, you
will require verification of your employment form, your latest salary
slip/salary certificate which outlines all deductions for at least the last 6
months. Form 16 from your employer for
the last 3 years. In case you are a self
employed individual, you will need a Balance Sheet and profit and loss account
of the business/profession along with copies of individual income tax returns
for the past 3 years as certified by a
CA.
You will also need a note, which gives the
information on the nature of the business, year of establishment, present
bankers, form of organization, clients, suppliers etc. And of course you will need a statement proving
your net worth as an applicant. Once you
are past this stage you will need to submit the property documents. After getting the approval from the financial
institution where you plan to borrow, the loan will be disbursed to you.
Benefits ofHome Loans: You can easily avail home loan from various
companies which offer home improvement loans to finance the cost of tiling,
plumbing, electrical work, grills, woodwork, painting, compound walls and
almost all improvements for your house.
In fact it must be a good idea to
avail of these home loans, because they offer a number of added advantages as
well. One of the most important benefits
of taking a home loan is the interest rate that is allowed on the home
loan. Fixed and variable interest rate
options are also available for home loans.
Many financiers also offer home improvement loans
at the same interest rate as they offer the home loans. Most of the prevailing interest rates fall in
the range of 7.75% to 8.75% There is
usually processing fee of 1.00% to 2.00%
also that is involved. The other
benefit of taking a home loan is the security that is to be currently being
constructed as the security for the home loans.
Of course, most banks and finance companies do not finance more than 85%
of the cost of the property mortgaged.
Perhaps the benefit that is most used is that of the tax benefit. The interest that is paid on home loans are
deductible from the annual value resulting in a lower taxable income. For self occupied property, interest to the
extent of Rs.30, 000/- is deductible
from taxable income. The maximum amount
of fund that can be received through the home loans varies between 50%-100% of
the total cost.
Of
course the loan amount is also subject to the repayment capacity of the
borrower. The usual rule states that the
sum of all the monthly installments a borrower has to pay should not exceed
40%-50% of his gross monthly
income. Apart from the income and margincriteria, the applicant needs to be a salaried or self-employed individual. And
it is important that the loan is repaid before the retirement stage, or before
the person turns 65 years in case he/she is self-employed. On an average the repayment term of the home
loans can be extended up to 15 years.
Home LoanAgreement : With the ongoing flurry of activity and
festivity prevalent in the home loan segment of India recently, a large number
of people, in the euphoria to acquire that dream house, tend to overlook some
of the most important clauses in the home loan agreement. However, what they don’t realize is that
these clauses have a significant bearing on wide number of areas ranging from
interest rates to repayment schedules.
Some of the simple clauses of the home loan
agreement regarding to simple matters, such as how often the housing finance
company resets interest rates in a year can make a considerable impact on the
floating rate home loans. The norms in
the industry practices suggest that interest rates for home loan consumers are
reset only when the bank’s prime lending rate is changed. Therefore it is the frequency of these resets
that is really important Some of the finance companies offer home loan
agreements wherein the interest rates are reset in each quarter. Alternatively, there are other companies who
do the revision only once a year. Sadly
not many home loan consumers are aware of the clause related to the fixed rate
home loans, which the financial companies some times insert in their home loan
agreement.
This ignorance can cause the customers unintended
losses in case of revision of the fixed rate home loan rates. Most of the customers are not aware that this
particular fixed rate clause in the home loan agreement, permits the financial
institutions to change the loan’s repayment schedule and terms and conditions.
The financial institutions
in a rising interest rate environment might exercise this option in order to
safe guard themselves and in the interest of their own company. This move is usually not in the best
interests of the customer or the home loan seeker as the modification of the
repayment schedule, terms and conditions might affect the overall repayment of
the consumer. The long list of terms and
conditions of the home loan agreement, usually contain clauses which might
possibly have a number of significant implications for the consumer and
therefore it is important that the consumer is aware and makes an informed
choice accordingly. Courtesy : M.Hemdev.
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