Get an affordable interest rate on loan against property with these tips

Applying for a loan against property means that you can enjoy a large amount of approval at a lower rate. It is because it is a secured debt. 

However, if you want to get even a more affordable interest rate on loan against property, you can implement a few tips. 

Read on!

1. Maintain a CIBIL score 

Even though a loan against property is secured finance, you need to maintain a robust CIBIL score to get the approval at even a lower rate. Lenders consider a credit score of 750 or more the best one to enjoy a lower interest rate on loan against property. You can do that by paying your EMIs and other debts on time. 

2. Go for a smaller tenor 

A longer tenor may help you to pay reduced EMIs, but that also means managing a large interest rate amount. On the other hand, a smaller tenor may increase your EMI amount but save big on the interest rate on loan against property. Thus, you should choose a tenor matching best to your repayment capacity with enough savings. 

3. Shop around for the best deal with lowest possible interest rate 

Another easy way to enjoy an affordable interest rate on loan against property is to shop around. Once you compare all available loan against property deals online on a third party website, you can easily pick the best deal matching your needs and budget. 

Based on your eligibility and lender’s policies, you may get an amount of up to Rs.5 crores from top-ranked lenders in India. 

However, if you want to reduce or pay a lower interest rate on loan against property, you can follow one of the discussed tips. 

You can also get in touch with a known financial expert to help you out if you want to know about the practicality of each of the tips.   

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Know about PMRY Scheme in detail

Do you have any idea of the Pradhan Mantri Rozgar Yojana (PMRY Scheme)? 

It is one of the key schemes of the Central Government of India to generate employment. 

If you want to know about the PMRY Scheme, then this post is what you need to go through!

What is PMRY Scheme?

The Pradhan Mantri Rozgar Yojana is a plan that has been conceptualized to incentivize employers and come up with new employment. 

Unemployment has become of the major problems in India. The number of unemployed youths is so high that it is not possible to employ all by the Government. 

Considering this, the Government has implemented this PMRY Scheme. In turn, it creates more employment prospects. PMRY Scheme was earlier launched in 1993 and given a revamp in 2019. 

Under PMRY Scheme, eligible candidates looking to do business and become self-employed will be financially supported. 

How much loan can one get under the PMRY Scheme?

Under this Pradhan Mantri Rozgar Yojana plan, the maximum loan amount is fixed considering different regions. You can avail of a maximum loan amount of up to Rs.2 lakh for the manufacturing and service sector. It is Rs.5 lakh in the service and industry sectors. The loan amount is Rs.1 lakh for the business sector and Rs.10 lakh for working capital. 

If you are at least the 8th standard passed, and if you and your family’s income (including spouse and parents) is up to Rs.40,000 per annum, you can apply for PMRY. 

For general category applicants, you must be at least 18 years with a maximum age of 35 years. Women, Ex-Servicemen, Disabled and SC/ST candidates enjoy 10 years of relaxation. 

If you want to apply for PMRY Scheme, then you must have lived continuously in a place for at least 3 years and more. 

You should also not have availed any loan from a bank or defaulted on it. 

You should also not have availed of any subsidy via any other launched scheme of the Government to become eligible to apply for PMRY. 

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Do You Know About PMAY And Its Eligibility Criteria Tracking Process?

The Pradhan Mantri Awas Yojana (PMAY) is an ambitious housing scheme of the Central Government initiated by PM Narendra Modi in 2015. 

If you don’t have any pucca home anywhere in India, you have the required PMAY eligibility to apply. 

You and your family’s annual income should also be up to Rs.18 lakh to apply. Tracking the PMAY eligibility is also easier. 

Let’s check out this post!

A quick look at the PM Awas Yojana eligibility norms 

1. You can land on the PMAY website, where there is a pre-declared PMAY status list. You can search for your name in it using your Aadhaar number on the ‘Search Beneficiary’ tab. And doing this will let you know your PMAY eligibility. 

2. Once done, you can apply for Pradhan Mantri Awas Yojana in Maharashtra or elsewhere on the official portal. Download the form from the ‘Citizen Assessment’ tab, fill in the details asked for and attach documents proof. 

3. Now, you can apply for the Pradhan Mantri Awas Yojana with a lender and attach your PMAY form with it. You can always apply for a large amount above the subsidized amount of up to Rs.12 lakh. The only thing is that you won’t get subsidy benefits on an amount more than the figure. The non-subsidized home loan amount will be given at a higher rate. Post this, your housing loan application is processed, verified and checked along with the PMAY status. If everything is good to go, you will get the subsidized part of the home loan credited to your bank account. It will be available under the Pradhan Mantri Awas Yojana scheme by the Government within 3-4 months. 

Based on your income groups, you will be able to enjoy an interest subsidy of up to 6.5% to an amount of up to Rs.2.67 lakh. 

This way, you can save big and start paying lower EMIs.      

Read Also: Important Pointers to Note About Pradhan Mantri Awas Yojana  

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You must know the eligibility criteria for loan against property

If you have a residential or commercial property in a leading city in India and you want a significant amount, then you don’t need to apply for a personal loan. It is because it comes with a higher interest rate. 

You can simply use your property, keep it as collateral and apply for loan against property at a lower rate. 

But to do that, you need to meet some standard eligibility criteria for loan against property and submit a few documents. 

Read on and know more!

Standard eligibility criteria for loan against property at a glance    

1. Your age should be between 28 and 58 years. 

2. You must be employed with an MNC, Public or a Private Limited Company. 

3. You should be a resident citizen of India and must live and have a property in an area where your lender operates. 

4. Your latest Salary Slips. 

5. Last 3 months’ bank account statements. 

6. Form 60/PAN Card. 

7. Address proof. 

8. ID proof. 

9. Copy of the documents of the property to be mortgaged. 

10. Income Tax Returns (ITRs). 

11. Title documents as per the requirement by the legal team of your creditor. 

12. Any other documents as needed. 

These are the standard loan against property eligibility terms and documents required. They may differ from lenders and lenders. The best thing is to land on the website of your lender and be aware of all eligibility aspects. 

You should also have a CIBIL score of 750 or more to improve your eligibility for a higher amount at a lower rate. Your property should also be located in a central area so that you can fetch a considerable amount at a lower rate. It is vital because a lender can easily auction/liquidate your property in the event of a default.     

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Do you know Stamp duty and registration charges in Mumbai, Maharashtra

Before you know how to apply for home loan in India, you should have a fair idea about all the charges involved. 

And one of the most crucial ones is the stamp duty in Maharashtra’s Mumbai or anywhere else where you invest in a home. 

This way, you can easily evaluate the overall cost of the home loan. 

Read on and know about the stamp duty in Maharashtra, along with registration charges!

What is the stamp duty charge in Maharashtra’s Mumbai?

The stamp duty in Maharashtra is basically a tax that home loan customers are required to pay while registering their properties. 

The stamp duty in Maharashtra is applicable on all property types, including leasehold, agricultural and non-agricultural and commercial ones. 

Stamp duty in Maharashtra is the responsibility of the State Government to collect it in Mumbai and other parts of states like Pune, Nagpur and elsewhere. But it is the Central Government of India that fixes the rate of stamp duty in Maharashtra. 

Stamp duty is determined by the agreement of the property or market rate, and may differ from city to city. For example, stamp duty in Mumbai will not be the same as Pune. 

Factors like property location, owner’s age and gender, including the age of the property and purpose, determine stamp duty in Maharashtra. 

Read Also: You must know about stamp duty and registration charges in Pune

Stamp duty in Maharashtra’s Mumbai is 5% of the market value of the property for males and 4% for females. These charges are for within the municipal limits of urban areas in the city of Mumbai. 

What are the registration charges in Maharashtra’s Mumbai?

The registration charge in Maharashtra’s Mumbai is 1% of the total cost of the property. 

If you want to calculate your property’s payable stamp duty charges in Maharashtra, you can always use the online stamp duty calculator. This tool is available online on many third party sites to help you arrive at the result within a short time span.  

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A complete guide on Pradhan Mantri Rozgar yojana

Pradhan Mantri Rozgar Yojana (PMRY) saw the light of the day way back in 1993. It was initiated to offer self-employment to the educated women and youth of India. 

Let’s know about Pradhan Mantri Rozgar Yojana in this quick post!

What is Pradhan Mantri Rozgar Yojana?

Pradhan Mantri Rozgar Yojana intends to provide subsidized financial support to help the youth and women of India to come up with their self-employment vehicles. It is possible to be done in the trading, manufacturing and service sectors. Beneficiaries under the Pradhan Mantri Rozgar Yojana are also entitled to fund agricultural projects. But PMRY is not applicable for direct agrarian operations. 

What are the features of PMRY?

• It comes with the assistance of up to Rs.2 lakh in the business sector and up to Rs.5 lakh in the industry and service sectors. Rs.10 lakh for working capital needs are also available.  

• PMAY plan provides a subsidy of up to 15% of the project to a ceiling of Rs.7,500 per entrepreneur. 

• Lenders may ask entrepreneurs for 5%-16.25% of the cost of the project as margin money. 

• The subsidy + margin money may go up to 20% of the project costs. 

• A collateral-free loan of up to Rs.1 lakh (in case of a partnership) – the exemption is Rs.1 lakh per beneficiary. 

• It comes with a tenor of 3-7 years. 

• You also get to enjoy a moratorium period helping you to make money out of your enterprise before repaying. 

• You get training of 15-20 days to help you set up your venture successfully. 

Read More: What are the different types of Pradhan Mantri Yojana?

What are the eligibility terms of Pradhan Mantri Rozgar Yojana?

• You should be an educated application between 18-35 years of age. SC/ST, Women, Ex-Servicemen, and Physically Challenged enjoy 10 years age relaxation. For 7 North-Eastern states, the cut off age is 40 years and for special categories, as mentioned before is 45 years. 

• You must have passed 8th standards with preference given to individuals having 6 months of training in any trade in a Government accredited institution. 

• Your annual income, including your spouse, must not exceed Rs.40,000. The income of your parents should also not go beyond this. 

• You must live in a locality for 3 years. 

• You must not have defaulted on previous loans or availed assistance via any other subsidy-linked Government scheme. 

If you fall under the eligibility norms, you can apply for Pradhan Mantri Rozgar Yojana.   

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Things to consider before applying to Pradhan Mantri Awas Yojana for home loan

 Pradhan Mantri Awas Yojana (PMAY scheme) is an initiative of the Central Government of India headed by PM Narendra Modi. It was launched in 2015 to help the poor population get into their own pucca home across India. 

Anyone or family not having any pucca home anywhere in India can apply under the PMAY scheme. This way, they can pocket home loan interest rate subsidy of up to 6.5% or Rs.2.67 lakh as per their income group. 

However, before applying for the PMAY scheme for home, one needs to consider many crucial things. 

Read on and know more!  

PMAY eligibility criteria at a glance

Unless you don’t meet the PMAY eligibility criteria, you can’t apply for a home loan under this and enjoy the interest subsidy. Take a look: 

• You or the beneficiary family must not own a pucca home anywhere in India in your or their name. 

• A beneficiary family comprises a husband, wife, unmarried sons and unmarried daughters. 

• The beneficiary family or the applicant under the PMAY scheme is not allowed to enjoy the benefits offered under this plan on an already built home. 

• You or the beneficiary family must not have availed of the perks offered under the previously launched scheme of the Indian Government. 

• If you are a married couple, either single or joint applications could be submitted. And in that case, only one subsidy will be allowed. 

• You or your family’s yearly income must be up to Rs.18 lakh to become eligible for applying under this PMAY scheme. 

• The construction or extension for which the PMAY home loan is taken must be completed within 36 months of the 1st date of disbursement. 

If you can fulfil the mentioned PMAY scheme eligibility terms, you may not have any issues in applying for it and start saving on EMIs.     

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A complete guide on how to apply for home loan in Gurugram

Do you live in Gurugram and want to apply for a home loan in Gurugram? 

If yes, you can do that easily online right on the website of your preferred lender.

In turn, it can help you to save your time and let you avoid stepping out in COVID-19 times. 

Read on and know the easy steps to apply for an online home loan in Gurugram! 

Applying for an online home loan in Gurugram made easy 

1. The foremost step is to land on the website of a lender you want to apply for a home loan in Gurugram with. 

2. On the website of your lender, you need to access the online home loan in Gurugram application form. On the loan application form, you need to enter your personal, financial and employment credentials. They are your name, income, monthly Salary and as required. 

3. Submit the online housing loan application form. 

4. Once done, your lender’s representative will connect with you quickly to guide you with the next relevant steps. 

5. The remaining process is hassle-free. Submit the required documents and coordinate with your creditor for the verification. 

The home loan in Gurugram application process of most lenders is quite simple and straightforward. This way, you can focus on finalizing your property to be purchased. 

Apply for home loan and getting the approval not only lets you enjoy a large amount but even access home loan tax benefits. 

Before you begin applying for a home loan in Gurugram, you should ensure having a higher CIBIL score of 750+. You should also have a consistent employment record and apply young to get the housing loan approval faster and at a lower interest rate. 

It is also advised to compare all housing loan deals online before finalizing one. It is because you can easily compare all offers and pick a deal meeting your needs and budget.

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Eligibility criteria, features and benefits of top-up loan

Do you have an ongoing home loan that you are paying a large interest amount on and want to cover your different needs without managing larger interest rates? 

If yes, you can switch your home loan to another lender offering a lower rate. 

This way, not only your home loan interest rate will come down, helping you pay lower EMIs, but even a top up loan. 

A top up loan will help you manage all other needs at a lower rate and a longer tenor. 

Let’s know about the eligibility terms, features and benefits of a top up loan in this post!

What are the eligibility criteria of a top up loan?

All existing borrowers who apply for home loan balance transfer are eligible to avail of the top up loan facility. They also need to procure a few basic documents as required by their new lenders to complete the application procedure. 

What are the features and benefits of a top up loan?

1. Lower interest rate 

Since a top up loan is given on an already active housing loan, the interest rate on a top up loan is lower. It is some points above the active home loan – making it easier for you to manage. 

2. Quick and easy financing 

You need not follow strict terms and conditions to apply for a top up loan. In turn, it lets you get the loan approval faster. 

3. High-value loan money 

Based on your eligibility, the top up loan amount could be as high as up to Rs.1 crore and even more. 

4. No restrictions on funds usage 

You are free to use the top up loan amount for anything as per your needs if the purpose is legal. 

5. Longer repayment tenor 

You don’t have to strain your wallets to repay the top up loan. It is because its tenor is almost the same or less than your ongoing housing loan. 

If you need a considerable amount to meet other needs when you have an active home loan, then a top up loan is what you can rely on. 

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Know How to Complete your Dream of Owning a House Using PMAY

It is the dream of everyone to have their own home. But not everyone is able to achieve it. It is because the cost of investing in a home is not under the budget of all. 

But if you still don’t have a pucca home in India, you can now fulfil your wish today. 

All that you have to do is – apply for a home loan and enjoy an interest subsidy under PMAY. 

PMAY stands for the Pradhan Mantri Awas Yojana. It was launched by PM Narendra Modi in 2015 to help the poor population of India to have their own home. 

But to do that, you will need to meet the PMAY eligibility criteria. 

Read on and know more!

Meet the PMAY eligibility criteria and fulfil your wish of owning a home 

• A Pradhan Mantri Awas Yojana applicant or any other member of the beneficiary family must not own any pucca home anywhere across India. 

• A beneficiary family comprises a husband, wife, unmarried sons and unmarried daughters. 

• You or the annual income of the beneficiary family must be up to Rs.18 lakh. The annual income of your spouse can also be included. 

• It is not applicable for a PMAY applicant to avail of the benefits of this housing scheme on an already built home. 

• You must not have taken any assistance from Central or State Governments under any previously launched schemes. 

• Senior citizens and differently-abled citizens are given preferences in the allotment of the ground floor. 

• If you are married, both together in joint ownership or either of the spouses can avail of a single subsidy. 

• The construction/extension for which the home loan under the PMAY is availed must be completed within 36 months from the first disbursement of the amount. 

If you can meet these PMAY eligibility criteria, you can easily fulfil your wish of having your own pucca home and paying the reduced home loan EMIs.  

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