Less Known Pointers that Can Affect your Home Loan Rates

A home loan is a secured option that comes with a longer tenor. Opting for a longer tenor may reduce your home loan EMIs. 

It may help you to manage other outlays in the month easily. But, you also have to deal with a higher home loan interest rate. 

But other than a longer tenor, many less-known factors also affect the interest rate of home loan in India. 

Let’s know more in this quick post so that you can avail yourself of the lowest home loan interest rates in India!

1. The location and value of your new home 

If your home that you want to buy using a home loan is located in a well-known place with basic amenities, you may enjoy the lowest home loan interest rates. It is because your lender will find it liquidating your property easier if you default. Also, the value of your property determines the applicable home loan interest rates. 

2. Your credit utilization 

If you have a credit card or avail yourself of another credit line and used a large part of it, you may not get the lowest home loan interest rates. It is because your lender may consider you to be depending on your credit limits to manage expenses. Hence, while applying for a home loan, ensure to lower your credit utilization. 

3. Your debt to income ratio 

If you have already many debts on your head, a large part of your income may go towards your EMIs. In this case, your income may not have room to make way for another loan. Even if a lender approves your home loan application, it may be at a higher rate. 

You are now aware of elements that most borrowers don’t consider while applying for housing finance. You should consider them and work on each of them to enjoy the lowest home loan interest rates. 

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Know the Facts about PM Awas Yojana and its Subsidy

The Pradhan Mantri Awas Yojana (PMAY) is a housing scheme of the Central Government of India. 

Under this PMAY housing scheme, there is a provision to build affordable houses all over India. They are to be constructed using eco-friendly and sustainable technologies. 

Besides this, the Pradhan Mantri Awas Yojana also offers an interest subsidy on home loans. 

Under this, it is possible to enjoy a home loan subsidy of up to Rs. 2.67 lakh and 6.5%. 

The home loan subsidy is awarded across income groups of applicants whose income ranges between Rs.3 lakh and Rs.18 lakh annually. 

If you want to know more about Pradhan Mantri Awas Yojana and its subsidy, you should go through this post!

Vital Pradhan Mantri Awas Yojana facts at a glance 

1. If you want to book your first-ever pucca home, you can avail of the home loan subsidy on the interest rate and enjoy savings. The home loan interest rate subsidy can also be availed as per your income groups. Income groups are Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group 1 and 2 (MIG 1 and MIG 2). 

2. A women applicant is given priority in the allotment of ground floors. It is done while allotting the homes. Differently-abled citizens are also given preferences while allotting ground floors for homes. 

3. The home loan interest subsidy is given up to 6.5% to the tune of Rs.2.67 lakh. 

4. The usage of eco-friendly and sustainable construction materials is permitted in the construction of affordable homes. 

5. The Government seeks to construct about 2 crore affordable homes in key urban areas for eligible customers. 

6. The focus of the Government is to uplift the standard of living of people in areas where low-cost homes are being built. 

If you wish to avail the PMAY benefits and enjoy interest subsidies, you can check your eligibility and get started. 

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Top Key Factors that are Boosting Home Loan Markets In India

 There is no denying the fact that the world is facing an unprecedented economic crisis owing to COVID-19. 

Even during this bad time, experts believe that home loan markets in India would experience a CGAR of around 22%. 

But, what are the factors responsible for driving the home loan market even during this dull period? 

One of the factors being held responsible is the improving living conditions of people in India. 

On that note, let’s check out the vital factors boosting home loan markets in India!

1. Affordable current home loan interest rates

Nowadays, you can see all top banks and non-banking finance companies (NBFCs) offering their current home loan interest rates really low. It has worked as a great opportunity for homebuyers to avail of the same and to manage lower EMIs. 

2. Residential rents are now equivalent to home loan EMIs

Despite paying a higher rent amount per month, the home you live in does not become yours. On the other hand, rents in key metro cities are now equivalent to the home loan EMI amount. Thus, it propels an applicant to avail of a home loan, pay EMIs per month and make it their own after the tenor. It is far better than spending the same money on rent and not making it your house. 

3. Attractive schemes 

Other than lower home loan rates, lenders have also come up with attractive schemes like paying off EMIs late. It is also possible to pay only interest on the utilized amount as the EMI and remaining at the end of the tenor. Also, it is possible to save big on repayments under home loan tax benefits. Thus, a home loan has different benefits than just giving you the key to your dream home. 

If you want to apply for housing finance, you can use the home loan eligibility calculator and know an amount you can apply for.

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Check Your Home Loan Eligibility with Home Loan Eligibility Calculator

Do you wish to avail of a home loan and have no idea about the exact eligible amount? 

If yes, you don’t have to worry! It is because you can calculate your precise eligible amount using the home loan eligibility calculator. 

Read on and explore more!

What is a home loan eligibility calculator?

The home loan eligibility calculator is an online tool that helps you know your actual eligible housing loan amount. 

This way, you can be confident and search for a property in the eligible amount range and avoid loan rejections. 

How to use the home loan eligibility calculator?

Using the home loan eligibility calculator is handy if you follow a few easy steps: 

1. Open the home loan eligibility calculator from your lender’s home loan page/calculators’ section. 

2. On the tool, enter your date of birth and city of residence. 

3. You also need to choose your monthly income, other sources of income, the loan tenor and existing obligations/EMIs being paid. 

4. Once done, you need to click on the ‘Check Your Eligibility’ button. 

5. After you do that, the home loan eligibility calculator will showcase your actual housing loan amount that a lender will approve. 

A robust CIBIL score, consistent employment, and income record will help you have increased home loan eligibility. 

If you wish to know about an exact home loan EMI amount, you can use the home loan EMI calculator. This tool is also available for free on a lender’s website. 

Once you enter your desired loan amount, the tenor and the interest rate, the tool will show your home loan EMI. 

You can also know about your home loan interest charges, along with the total loan cost (principal + tenor). 

Before applying for housing finance, you should be sure of an eligible amount and the home loan EMI figure. This way, you can approach it with confidence.     

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Get The Latest Updates On PMAY Scheme and PMAY List 2021

The Pradhan Mantri Awas Yojana (PMAY) is the housing scheme of the Central Government of India. The PMAY scheme was launched in 2015 by PM Narendra Modi. 

The PMAY was launched as a housing scheme to provide affordable homes to the poor population of the country in rural and urban areas. 

With a tagline of ‘Housing for All by 2022’, it intends to build affordable houses using sustainable technologies. 

Besides this, if you have PMAY eligibility, you can get an interest subsidy on home loan interest up to 6.5% and Rs.2.67 lakh. 

Based on your income groups, you can avail of an interest subsidy. If you have already applied for PMAY, you can check your name in the PMAY list 2021. 

Let’s know how to check your name included in the PMAY scheme in this post!

Here’s how to check your name in the PMAY list 2021 

1) Land on the official website of PMAY at www.pmaymis.gov.in. 

2) Hit the ‘Select Beneficiary’ option and choose ‘Search by Name.’ You can do that from the drop-down menu. 

3) Feed your correct 12-digit Aadhaar number. 

4) If your Aadhaar number is available in the PMAY database, you will be able to find your beneficiary details. 

What are the achievements of PMAY?

The Pradhan Mantri Awas Yojana – Gramin (PMAY-G) has managed to achieve 92% of its completion in its first phase.

1.5 crore+ homes in rural areas have been built during 5 years of the PMAY – G scheme. 

Under the PMAY – U, more than 41 lakh homes are completed, and 70 lakh+ houses are in different stages of construction. More than 1.68 lakh home constructions are already approved under PMAY – U and counting. 

If you want to apply for the PMAY plan and avail of an interest subsidy on housing finance, you can do that online after checking the eligibility norms. 

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Avail Your Dream Home with Lowest Home Loan Interest Rate in 2021

Your dream home in 2021 maybe just a home loan application away! 

A home loan facility helps you get a large amount as per your eligibility. 

Since a housing loan is secured, it comes at a lower rate. But repaying over a longer tenor may increase your interest charges.  

If you wish to avail yourself of the lowest home loan interest charges, this short post will help you know more! Read on!

1. Go for a shorter tenor 

Opting for a smaller tenor means that you have to pay the higher home loan EMIs. But it will also help you to repay reduced home loan interest charges. 

2. Make prepayments 

During the tenor, you can also make some prepayments to bring down the outstanding amount. Once done, the home loan interest charges will also reduce. It will help you to repay lower home loan EMIs. 

3. Shop around 

You should compare all available home loan offers of lenders. You should choose the best one matching your needs and repayment budget. The facility could be availed on a third-party website for free. 

4. Pay more as the down payment 

A lender will not sanction the entire cost of your new home as a loan. You have to manage 15-20% on your own. It is known as the down payment. The higher you pay; the lower will be your borrowable amount. In turn, you have to manage lower home loan rates and EMIs. You can always use the home loan EMI calculator and know an amount you will pay over a tenor. It will ensure that you can indulge in proper financial planning.     

5. Opt for a home loan balance transfer 

Existing borrowers looking to reduce their home loan interest outgo can switch their loans to a lender offering a reduced rate. It is known as the home loan balance transfer. You can also enjoy a top up loan with a significant amount, restrictions free usage, reduced interest and tenor like your ongoing loan. 

You can consider one of the tips and lower down your payable home loan interest charges and save.

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Want To Enjoy Home Loan Tax Benefits? Follow These Points

Do you have an active home loan account or want to apply for one? 

You should be aware that you can also enjoy some home loan tax benefits. 

If you want to know how to avail yourself of housing loan tax benefit, here is a short post!

Home loan tax benefits and conditions to avail of them 

1. On the principal home loan amount 

You enjoy a maximum of up to Rs.1.5 lakh on repaying the principal component of your home loan. You can claim such benefits on self-occupied, rented, or soon to be let out properties. The only condition is that the property in question must be built within 5 years and must not be sold within 5 years. 

2. On home loan interest rate charges 

On repaying the home loan interest rate charges, you can enjoy benefits on home loans. An amount of up to Rs.2 lakh will be available for deductions on interest paid. To claim it, your home in question must be constructed within 5 years. If not, you can claim only up to Rs.30,000. You can claim deductions only in the year of construction. 

3. Home loan tax benefits for joint home loans

Many people apply for a joint home loan to buy or build their houses. It is also possible to avail of the housing loan tax benefits for applying for joint housing loans. An amount of up to Rs.2 lakh for each borrower is ready to get deductions. The only condition is that you both need to be the co-owner of the property in question. 

It is also possible to enjoy tax deductions on stamp duty and registration charges to the tune of Rs.1.5 lakh. 

If you have an ongoing housing loan account or want to apply for one, you can avail of the discussed home loan tax benefits. 

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You Must Know About What is Loan Against Property?

The loan against property is one of the secured finances available in India and offered by leading banks and NBFCs in major cities. 

If you need a large amount to cover your different needs, you can keep your property as the collateral to do that. 

In this case, the loan is given against the value of your property. Most lenders may provide you with a loan value of up to 75-80% worth of your property. 

And the best part about it is that you can continue to live in the mortgaged property even after availing of the loan. The applicable rate of interest on the loan against property is affordable as its secured loan. 

When you apply for a loan against property, you don’t have to wait for the loan approval and funds disbursements. As per your creditor’s policies, it may be possible to get the approved loan value into your bank account within 72 hours. You can also manage your outlays by repaying the loan over a flexible tenor ranging up to 20 years. 

You can check out your loan against property eligibility by utilizing the eligibility calculator. The online tool is available on a lender’s website for free. Once you enter a few details, you will be able to know an estimated value that you can get. You can also learn how much loan EMI you need to pay per month over the tenor. It is possible to know about it using the loan against property EMI calculator. 

If you want to avail of a significant amount without any restrictions on usages, you can use your property to do that. The loan against property has emerged as a viable solution.  

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What are the factors that affect loan against property eligibility?

Potential borrowers need to fulfil all loan against property eligibility requirements to avail such credit without hassle.

Some of the factors that influence these eligibility are discussed below.

Factors affecting LAP eligibility

• Credit history

Credit history or CIBIL score is a crucial parameter that affects the LAP eligibility significantly. This factor substantiates a borrower’s repayment capability and creditworthiness. Most lending institutions give preference to individuals maintaining a 750+ CIBIL score. Hence, borrowers must clear any outstanding dues and practice timely repayment to improve eligibility.

• Applicant’s age

Age is another vital factor influencing Loan Against Property eligibility. A financial institution offers an affordable interest rate to young borrowers due to their repayment capability. The chances of loan rejection for the retired or aged applicant is relatively high.

• Income stability

Income stability and employment status are again vital for both salaried and self-employed loan applicant. Lenders affirm a borrower’s salary structure and association with the company to determine his/her repayment ability. 

• Property value

Financial institution weighs the mortgaged property’s value as an eligibility parameter. A LAP borrower is needed to submit all the authentic documents for the same. Ideally, a property positioned in the primary location surrounded by essential amenities holds a significant value. However, it should not be associated with legal turfs or illegal activities.

These are some factors that noticeably affects the loan against property eligibility. Hence, potential borrowers must try to improve their eligibility to make a hassle-free loan application.

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Easy Ways To Calculate Your Housing Loan EMIs through EMI Calculator

Despite having home loan eligibility, many people do not apply for housing finance. It is because they are unaware of an exact home loan EMI payable over a tenor. But it is possible to calculate home loan EMIs in advance. 

All that you have to do is – use the housing loan EMI calculator. Let’s know how to use the home loan calculator for EMI in this short post!

What is a housing loan EMI calculator?

A home loan EMI calculator is an online tool that you use free of cost on a lender’s website. It is accessible 24x7. The home loan EMI calculator helps you choose the right loan amount, tenor, and rate of interest as per your income. In short, it makes home loan planning simpler and faster. 

How do you use the housing loan EMI calculator?

1. You should land on the website of the lender that you want to apply for the home loan with. Open the home loan EMI calculator from the calculator's section. 

2. On the home loan EMI calculator, you need to select your desirable housing loan amount, the repayment tenor and an applicable interest rate. 

3. Once done, the online tool will showcase an exact home loan EMI amount you have to pay over a tenor. 

4. Along with the precise housing loan EMI amount, it will also showcase an exact payable interest amount and the entire loan cost (principle + interest). 

5. The results showcased by the home loan EMI calculator is accurate and without any errors. 

6. You also don’t have to wait for an indefinite time to know about your home loan EMI. 

7. Once you have an idea about the actual EMI figure, you can indulge in error-free financial planning. 

If you are ready, you can access the housing loan EMI calculator on your lender’s platform and plan your home loan quickly.

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