As the name suggests, Aspire Home Finance company gives you the opportunity to make your wish come true! As the famous saying says, ‘Home is where the heart is’, this housing finance company helps people get their dream home and their heart together. Having said that, this housing finance company also provides a specialized scheme for female borrowers wherein it give affordable home loan scheme. The name of this scheme is MALA - Mahila Awas Loan from Aspire. Isn’t it beautiful that a woman can get a home loan at an affordable price? It is indeed! Aspire Home Finance Corporation Limited is a Motilal Oswal Group company which aims to provides one of the best home loan deals in the market. Here at Aspire, you get the loan for the ready/under construction, residential property/construction of a residential property of a residential property on own land. In addition to this, the refinance facility is also offered by AHFCL to the customers who have a running loan from another bank. Have a look at the interest rates offered by Aspire Home Finance rate as per the different profession:
After going through all these attractive benefits, don’t you want to apply for a home loan online at AHFCL? Well, to apply for home loan, a person must meet the eligibility criterion set by AHFCL. So, have a look at the eligibility criteria below: Eligibility Criteria- Aspire Home Finance gives home loans to the below-listed applicants only:
1. Application form duly signed by the applicant along with the photograph 2. ID proof & Resident Proof 3. Processing fee cheque 4. Last 6 months bank statement 5. Documentation for salaried applicants:
After you have got everything ready, you would look for the application process, right? But, before applying, you should also check the monthly installments in advance so as to be prepared for the smoother repayment. Home Loan EMI Calculator- Just like any other loan calculator, a home loan calculator or a home loan EMI calculator is the tool that is used to calculate the monthly EMI, the total interest outgo, and the total amount (interest+principal) for your chosen loan amount. This calculator takes into account the loan amount, interest rate and the tenure for your loan. For example, if you have taken the home loan of ₹25 lakhs for 25 years at the annual rate of interest of 12%, the details of your payment are as follows: EMI- ₹2,22,122 Total Interest Outgo-₹1,65,464 Total Amount (Interest+Principal)- ₹26,65,464 You must be thinking why is it important to know the above details before getting the loan? Well, you must know that there are many benefits of a loan calculator and some of them are as follows: Benefits of using Home Loan Calculator or Housing Loan Calculator- Accurate results- One of the main advantages of using an EMI calculator is that it gives you accurate results, unlike manual calculation where the possibility to make mistakes is more. Time-Saving- Since everyone is getting busier each day, a tool like this makes it convenient for people to save time. Flexible Adjustable-You will be surprised to know that you are free to use the calculator n number of times. Easy Comparisons- With the help of the calculator, you can compare all the home loan offers available in the market and then choose the best one for yourself. More than EMI- The calculator gives the information more than the monthly installments like the total interest outgo and the total amount (principal+interest). Suits your Budget- When you check the installments in advance, you can see if you will be able to manage that particular amount without affecting your other financial liabilities. Accounted Processing Fee- The interest rate offered by the banks do not count processing fees, a loan calculator would let you know the payment excluding the other charges. However, there are some calculators that would count the processing fees also. Thus, with all the above information in hand, your home loan journey will definitely be smoother.
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EMIs are preferably one of the most consequential outflows from your monthly income and it is always a better idea to try and minimize your burden! But let's find out what exactly is your home loan EMI? EMI stands for Equated Monthly Installment which refers to a predefined amount you have to pay to your bank/lender on a fixed date, every month, for the full tenure of your loan period, until you have completely repaid the loan with the interest due. Each Home loan EMI involves payment towards the principal amount and the interest for the entire duration of the loan. During initial years, a higher proportion of the EMI is generated by the interest payment on the principal amount. As the loan matures, the interest component tends to decrease and the principal amount creates a higher percentage of the monthly payment. Higher down payment : Once a loan is sanctioned, choose to make a large down payment so that the principal amount is reduced. The calculation of interest payment is done on the principal, so smaller the principal, the lower would be the interest payment and EMIs would be smaller. It might appear difficult to arrive at a large down payment, but it will be useful in the long run and result in considerable savings in EMI payments. This is applicable in the case with long-tenure loans like a home loan which includes EMI payments over decades. Choose a longer tenure : In the case of a long tenure loans, the EMI tends to reduce proportionately as your principal and interest are divided over a maximum number of months. However, your actual monthly outflow will be smaller, you will be paying out your EMIs for a longer period of time along with payment of interest for a longer period. So while your monthly burden tends to be smaller, you might be paying extra throughout the tenure of the loan. Making an early prepayment : While making early pre-payment, you will considerably reduce your EMI for the majority of your tenure. It is better to consider prepaying part of your loan during early months/years of the tenure so that your principal decreases, hence you save interest on further payments. Negotiating with the bank : If you have a good reputation with your lender and have been disciplinary making your repayments on time, then you may seek permission from your lender for a reduction in the interest rate. If you have exhibited good repayment behavior, there might be chances for a reduction in the interest rate by your lender, therefore, reducing your EMI burden. Shifting your loan to another lender : If you find a lender who's providing you better terms and conditions on your loan, it might be a good alternative to change your lender. However, it is necessary to calculate the costs involved in prepayment of your loan with your current lender and to ensure that the costs do not exceed your savings you will benefit from your new lender. Home Loan EMI Calculator Formula- EMI Calculator uses the following formula to calculate your EMIs applicable on a home loan : EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where, EMI= Equated Monthly Installment P= Principal Loan Amount R= Monthly Interest Rate N= Number of Monthly Installments For example : To calculate EMI for a principal value of ₹ 1 lakh, 10% interest rate and 12 months tenure; following will be the calculations: Principal amount : ₹ 1,00,000 Rate of Interest : 10% Tenure : 12 months Calculated EMI : ₹ 8792 It is to be observed from the above example, there are three underlying factors behind EMI payments: principal amount, interest rate, and tenure. The EMI payment is directly proportional to the amount of loan and interest rates, and are inversely proportionate to the tenure of the loan. The higher the loan amount or interest rate, the EMI payments tend to become higher and vice versa. In the case of tenure of the loan, the total interest amount payable increases with the increase in tenure, hence, the EMI payments subsequently fall with an increasing tenure. Home Loan EMI Calculator Excel- The applicants of home loan can easily calculate their home loan EMIs on MS Excel. They need to use the function PMT in order to calculate EMIs. The following syntax needs to be used while calculating EMI in MS Excel. Syntax : PMT (rate, nper, pv) The variables used in the above formula are : rate – Rate of Interest on the loan nper- Total number of payments for the home loan pv- Present value/principal Article Source: https://goo.gl/7UswEF The demonetization of higher currency notes, as expected, brought about a massive rise in the bank deposits, making it easy for the lenders to lower their home loan rates. While Bank of Baroda (BoB) has slashed its 1-year MCLR to 8.35%, State Bank of India (SBI) cut the same by 90 basis points to 8%. Whereas, the private lender ICICI Bank cuts its 1-year MCLR to 8.20%. So, do you know how does MCLR influence the home loan rates? If not, then this article could tell you the same. So stay tuned as we crack the mystery of MCLR below.
Origination of MCLR The Reserve Bank of India developed the concept of Marginal Cost of Lending Rate (MCLR) to reverse the trend of the inadequate response from the banks with respect to the changes made in the repo rate by the central bank. The repo rate signifies the rate at which the commercial banks borrow from the RBI for their short-term needs. All floating rate loans from April 1, 2016, onwards have already come under the MCLR regime. Typically, it’s home loan that is readily available at floating rates by most lenders. And when you think of its tenure that’s as long as 30 years, you can make hay in times of falling MCLR. However, the downside is the escalating lending rates in the wake of increasing MCLR induced by the hike in repo rates. But since the MCLR is on a declining trend and could continue to fall for a fair length of time, the home loan rates are expected to plunge further. So, the time is ripe for home loans as one would speak of. What Does MCLR Include? The bank arrives at MCLR based on the following points. Operating Expenses-The day-to-day operational cost of the bank is referred as operating expenses Cost for Maintaining Cash Reserve Ratio- Cash Reserve Ratio (CRR) determines the amount of cash that the commercial banks have to keep with the RBI. The bank does not receive any interest on the said deposit, thus becoming its cost. Marginal Cost of Funds- The costs borne by the banks in the form of interest offered on savings and fixed deposit accounts, as well as the short-term borrowing rate i.e. repo rate. Tenor Premium-This is an additional interest slab over the base rate based on the loan tenure. Approach of Bank Towards Setting MCLR The bank publishes the MCLR on a monthly basis subsequent to revising it once a quarter. The MCLR for different periods is announced by the bank. The bank publishes MCLR for a fortnight, month, a year, two years and three years. Whatever changes are brought in the 1-year MCLR, the interest rates on a home loan undergo a change. The banks are mandated to specify the rate reset frequency in the loan agreement paper. There is a catch here to unfold. Want to know what is it? Many borrowers carry the false notion that every MCLR change brings a change in the lending rates. Actually, the loan will be serviced at 1-year MCLR as applicable on the date of loan disbursal for 1 year. For example- You got the receipt of the home loan on 31st August, 2016. The 1-year MCLR applicable at that time was 9.05%. The benchmark rate will continue to apply for a year i.e 31st August 2017. After that, the loans will be repriced. The MCLR changes are applicable for new loans only. Differentiate between Benchmark Rate and Lending Rate The lending rates are a sum of 1-year MCLR plus the spread. At the start of the ongoing year 2017, SBI bowled a 'Googly' to stump out many of its competitors by announcing a 90 basis point cut in the benchmark lending rate. At the beginning, everyone thought that the home rates had fallen to 8%. But in reality, the MCLR was brought down to 8% from 8.90% earlier. The lending rate was 8.60%-8.65% per annum, 60-65 basis point above the benchmark rate. Even though the lending rates fell, but the spread over the 1-year MCLR was more than what was earlier. Before the development, the spread over SBI's 1-year MCLR was 20-25 basis points, lower than what it is now. In this way, the bank has reduced the transmission of rate cut benefits even by offering the home loan at lower rates. Home Loan Rates of Few Banks and Housing Finance Companies State Bank of India- 8.60%-8.65% p.a. Bank of Baroda- 8.35%-9.35% p.a. ICICI Bank- 8.65%-8.85% p.a. HDFC Limited- 8.65%-8.75% p.a. Indiabulls Housing Finance- 8.65%-8.85% p.a. So, this was MCLR and its impacts on the floating rate home loans. Hope you have understood the phenomenon well to get your dream home soon. Article Source: https://goo.gl/9KzGo8 When it comes to home, it is surely one of the most obsessed possessions of many, don't you think so? Yes, a large number of people after settling down in their professional life start planning their personal life. And, when we say personal life, the planning of buying a dream home comes first, after all we all wanted to have that personal space, where we can do whatever we want. However, one thing that needs to be mentioned here is the fact that buying a property, especially in today's time is not everyone's cup of tea as the real estate prices are beyond the reach of many. Keeping this thing into consideration, these days not only one but many lenders available in the marketplace, known for giving the financial help to those who are in urgent need of money to build their dream home.
But, again the big task is how to choose the best lender. Well, nothing to worry as for your help, in this article we are going to share the insights of LIC home loan so that it becomes easy for you to choose a lender, which offers the best deal. So, let's not waste any time and try to understand more about this product. LIC Housing Finance is undoubtedly one of the leading NBFCs (Non Banking Financial Company), worldwide known for providing the secured financing solutions to the needful at affordable rates. This financial firm apart from providing the regular home loan to purchase, construct, repair, renovate also offers gives finance to professionals to purchase as well as construct clinics, nursing homes, diagnostic centres, etc. If you want to avail this credit facility, LIC offers you the same at an interest rate of 8.50%-8.65% p.a.(women) and 8.55%-8.70% p.a.(others) for a tenure that ranges between 20-30 years. The best part about this credit facility is that it comes to you at nil processing and foreclosure charges, and you can avail the loan amount for upto 75%-85% of the property value. Both salaried as well as self-employed can go for the same by fulfilling the eligibility criteria set by the lender. So, let's just know more about the eligibility norms of the same product.
Now, that you know the eligibility, so let's just discuss the types of loans offered by LIC to all its esteemed customers. This NBFC offers different types of home loans to the people belonging to the different categories such as Indian, NRI and Pensioners. Resident Indians: The lender offers the credit facility to the resident Indians so as to fulfill their need of buying a new house/residential unit, constructing a new home/residential unit or doing an extension in the existing property. Non Resident Indians: The lender do understand the fact that NRIs can also have their own property in their own country, hence offers them this scheme, wherein the NRIs can avail this credit facility to purchase or construct a new house or can also make the extensions in their existing property. Pensioners: LIC makes life simpler for those who are in the process of retirement or have crossed the same. Under this scheme, the pensioners can avail the multiple benefits such as attractive interest rates, flexible tenures, less fee and charges and so on. Well, my friends now you must be wondering what all documents are required to avail LIC home loan, isn't it? If that is the case, here we are letting you know about the documents so that you can avail the same without any hassle. So, take a look below to know about the documentation required. Common requirement for all applicants:
For Salaried persons:
For Purchase from Builder:
For Direct allotment in a Co-operative Housing Society:
For Direct allotment in a Co-operative Housing Society by Public Agency:
For Public Agency's allotment to individuals:
For Resale:
Article Source: https://wishfin.blogspot.in/2017/02/with-lic-home-loan-say-yes-to-your.html Owning a home is the most cherished dream of people. But most people drop this idea due to lack of funds. Now there is no need to compromise on your dreams as LIC Housing Finance home loan is there to assist the aspirant home buyers. The company helps the potential home buyers by providing home loans at competitive rates. The company provides the home loan for the purchase, extension, construction and repair of the house. The customer can apply for the housing loan as per his requirement. The details of loan schemes are given below:
LIC Home Loan Details: Loan Amount - The company grants 85% of total cost of the property for loans up to ₹ 20 Lacs; 80% of total cost of the property for loans above ₹ 20 Lacs and up to 75 Lacs; 75% of total cost of the property for loans above ₹ 75 lacs with minimum amount subject to ₹ 1,00,000. Repayment Period - The maximum loan tenure for the salaried individuals is 30 years while for self-employed the repayment term is restricted to 20 years. Processing Fees - The company charges zero percent processing fee on the loans. Mode of Repayment - The loan amount is to be repaid in form of Equated Monthly Installments LIC Housing Loan Interest Rates: The interest rate prevalent on various slabs is given below:
Eligibility Criteria: In order to take the loan, the applicant must meet the standards set by the lending company. The eligibility criteria for availing the benefit of housing loan from LIC Housing Finance is mentioned below:
Documents Required for LIC Home Loans: Loan applicants have to produce the following documents in order to apply for the LIC home loans: 1. General Documents
2. Salaried Applicants In addition to the aforestated documents, salaried applicants must provide the following documents:
3. Self-Employed Applicants Apart from providing general documents, self-employed applicants need to submit the documents as under:
LIC Housing Finance EMI Calculator: The borrower can compute the installment amount he has to pay each month to settle the loan availed using the EMI calculator. The housing loan calculator is an automatic device that aids in the computation of EMI amount. The computed EMI amount constitutes a part of principal repayment amount and interest amount. It even reveals the total repayment amount the borrower will be paying by the end of the loan tenure. It tells how much interest the borrower has to pay on a certain loan amount. The calculator makes the calculation quick and simple. It is easy to use the calculator. The user just has to enter the information regarding the loan amount, tenure and rate of interest in the relevant fields. After processing the data the results will be displayed on the screen. Features & Benefits LIC Housing Finance Home Loan: The features and benefits of the housing loan provided by the company are as follows:
Article Source: http://www.imfaceplate.com/aashnabatra/revamp-your-housing-dreams-with-lic-housing-finance |
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