Everybody wants to stay free of debt and when we get a chance we like to prepay our debts as soon as possible. However, foreclosing a home loan differs significantly from prepaying other secured loans. When you “Apply For Home Loan“ you going to get variety of benefits and prepayment option is also one of them.

A prepayment of home loan means when a borrower fully or partially repays loan before the end of loan tenure. Every lending institution charges a prepayment fee, so it is important to go through all loan terms and charges carefully before signing a loan agreement. The charges on prepayment are based upon the kind of interest rate and loan amount.

Most of the lending institutions do not impose a foreclosing charges on the loan applicant with variable interest rate where as they charge the borrowers with fixed rates. However, penalty is also based upon who owns the property which means if it comes to non individual versus individual, charges are imposed both on floating and fixed rates in non-individual ownership.

Prepaying a home loan has both pros and cons which we will discuss one by one in this blog post:

Pros of Prepaying a Home Loan

• Fewer instances of delayed EMI payments: As time flies, one has greater chances of increased financial obligations therefore prepaying a home loan excludes the need to dig out your savings to pay off your monthly installments. Hence, it is advisable to prepay your home loan partially or fully whenever you get an additional income or bonus.

• Reduced interest outflow: Prepaying a loan partially decreases your principal amount which in turn interest burden and EMIs. As all knows interest rates are highest during the initial stage of loan against home so it’s good to repay early to grab maximum benefits.

• Short loan tenure: During a prepayment, a borrower is given with the option of reducing an EMI or shortening home loan tenure by the lender. Now, it is up to borrower to opt out what they want to pursue.

Cons of Prepaying a Home Loan

• No tax benefits: It is one of the greatest benefits of Home Loan where you can get an opportunity to save money on taxes. As per Income Tax Act, 1961 a borrower can apply for tax rebates on repayment of the loan amount as well as interest payment but if you prepay your loan against home, you may miss the tax rebate on loan money.

• Reduced savings and other investments: Before making any prepayment, make sure that you have sufficient funds for achieving other financial goals and life uncertainties. One might also lose other investment benefits due to lack of savings.

Hence, it is good to reduce your debt burden but a strong aversion to your financial burden is not always prudent. Whether you “Apply For Home Loan Online“ or offline in future, never haste to prepay it and sacrifice your liquid funds on it. Always ensure yourself to have an emergency fund for immediate needs.

Nowadays, gold loan sector is booming in our country and proves to be a growing sector in global economy. The prices of gold are constantly fluctuating but there are several loans available to solve your financial needs. It is often true that when we hear the word loan, there are hardly any chances that we may think of right lender who can offer us right loan with great benefits.

However, there is one stop solution where you can “Apply For Gold Loan“ is ShubhBank which offers you best deals on loans at your doorstep. The loan processing is not identical with other secured loans as it the entire processing get completed just in 1-2 hours after pledging your gold and evaluations. One can also receive the loan money at their doorstep without any hassles.

A borrower can used the funds generated from gold loan to meet immediate financial crunch such as medical expenses or other personal and professional needs. Gold loan is a convenient way to raise the capital which you can use to meet your financial obligations. Moreover, your precious meal is also safe in a financial institution’s vault than at home.

In this blog post, we will read about the features of gold loan that fuel borrowers to seek out this most secured loan:

→ Simple application: It is very simple to get cash out of a Gold Loan as you just have to pledge your gold with basic details. Unlike other loans, a loan against gold doesn’t require any income certificates and bank statements as well as income tax return slips. Being secured loan, it has an instant processing.

→ Multi-purpose: It is one of the best things about the gold loan that the funds can be utilized for any of your needs. There aren’t any limitations proposed by the lender on using the loan money which tends more and more people to avail such kind of loan.

→ High LTV: Loan to value ratio is one of the most pressing query asked by the loan seekers that what proportion of the collateral value can be funded to them. Therefore, in case of Gold Loan, lending or financial institutions sanction 75% of the value of gold as loan money whereas some lenders or NBFCs may go up to 80%.

→ Repayment flexibility: One would be surprised to know that gold loan can be paid in variety of ways which makes this loan one of the most popular financial tool among borrowers. Based upon your preference, you can choose the repayment mode for yourself which makes you to pay back the loan in less time.

→ Basic documentation: There is only need of basic documents that can get you gold loan very easily such as ID proof and address proof. One may “Apply For Gold Loan Online“ and upload required documents on the website of lender to secure the loan.

Hence, anybody who owns gold can avail the gold loan without any credit rating, ITRs and other bank statements. The above mentioned factors make it the most secure loan among borrowers these days but make sure to repay the loan on time as default on gold loan could result in loss of your asset.

Nowadays, inflation has affected most of the people financially which is too difficult to handle without any monetary aid. It can be resolved either by borrowing from friends or relatives or availing different loan products from financial institutions as per your requirements. There are various lending institutions that offer several types of secured and unsecured loans as per borrower’s need.

As far as you are concerned about the security of loan, you can apply for Loan against Property as you could access this financial product on residential as well as commercial property. One can also get the benefits of online loan against property from the comfort of your personal space. You can avail this loan at ShubhBank by submitting the required documents to complete the application process.

Before you “Apply For Loan against property“ and submit all the required documents, consider some of the essentials that you can’t avoid for LAP:

→ Valuation of the Property: We have already mentioned that different type of residential and commercial properties can be mortgaged with the lender to avail Loan against Property. Remember, lender will evaluate the value of property to be pledged based upon the current market price.

A lender will sanction you the loan money up to 70% of the current value of the property upon the submission of needed documents. However, the valuation of property may differ from one lender to other.

→ Interest rate: The interest rate on Loan against Property is much lesser as compared to other secured and unsecured loans, so it’s better to do a market research of lenders and compare the proposed interest rates offered by different institutions. Moreover, various lending institutions charge different interest rates, so don’t rush for availing a quick loan.

→ Loan repayment tenure: Generally, the lenders provide longer duration to the borrowers for the repayment of Loan against Property. Sometimes, the loan tenure differs from one lender to other but being a responsible borrower; one has to maintain a balance between repayment period and monthly installments. The longer tenure will result in shorter EMIs ultimately reducing your loan burden.

→ Processing fees: Every lending institution charge the processing fees according to their lending norms which usually ranges from 0.5 to 2% of total loan amount. Therefore, it can’t be assumed solely based upon rates of interest. It is better to consider processing fees beforehand while availing a Loan against Property.

→ Ownership of the Property: The ownership of the property whether it’s residential or commercial should be clear. If you have disputed title of property in your name or incomplete documents then your loan application will get rejected. In case, you have a joint property then the consent of all the owners is must for getting a Loan against Property.

Hence, it is good to “Apply For Loan against property Online“ or offline to cater all your financial needs but try to choose a lender who offers the best loan deal that suits your needs. ShubhBank strives to understand the borrower’s requirements and offer best value and benefits on Loans against Property.

In our country, there are countless people who often dream of owning a home but only an army of people can turn this dream into reality due to soaring land prices. However, the rising popularity of home loans has turned many individuals towards availing such amazing financing alternative.

Well, it is not like a piece of cake to “Apply For Home Loan“ these days. There are several lending institutions such as ShubhBank who offers best home loans but every lender has a unique set of eligibility criteria which a borrower has to fulfill. In case, you don’t meet such criteria then you need to sharp your loan eligibility to qualify the home loan.

In this article, we will guide you through different ways to boost your home loan eligibility:

✓ Opt for longer tenure: Loan tenure plays a vital role in determining your eligibility for home loan because longer repayment period leads to smaller EMIs. It will be easier to repay the smaller debts as they don’t put strain on your finances. A longer tenure provides you repayment flexibility to stay within your budget as well as offers additional tax benefits.

✓ Clear all your debts: Every lender is cautious of lending to a borrower with existing debts as multiple borrowing will risk your repayment capacity for paying dues in future. Therefore, make sure to pay all your existing debts before availing a home loan because clearing all your dues makes you credible borrower to access a home loan with ease.

✓ Improve your credit history: A good credit history can be a key to unlock a home loan with low interest rate. Your credit rating is based upon various factors such as debt repayment history, transaction in older accounts and outstanding dues.

If you have a poor credit history then there will higher chances of getting a rejection on home loan. So, clear all your previous loan defaults and improve your credit rating to avoid any rejection.

✓ Mention all your income sources: It’s a need of an hour to declare all your income sources while applying for home loan.

Many borrowers believe that lender only look for primary source of income but more you provide the sources of income to lender, more will be the chances to get approval on your home loan application. Moreover, having additional source of income will also help you to acquire higher loan amount.

✓ High down-payment: The LTV ratio for home loan provided by any lender is up to 80% of the total market price of property but the entire percentage of loan money depends upon your credit worthiness. When you “Apply For Home Loan Online“ or offline, try to increase your down payment as it will directly increase your home loan eligibility lowering a credit risk for lender.

Hence, the loan approval on home loan completely depends upon your repayment capacity. If the lender is confident about your credit worthiness then the loan amount is disbursed quickly to your bank account. At the end, we can say that by following above mentioned ways, you will surely boost your eligibility for home loan.

Nowadays, inflation has caused a huge disruption in the country’s economy where many individuals have lost their job and businesses suffered losses and exhausted all their surplus capital, therefore in need of funds to take care of various needs as well as to cater the emergencies. Most of them are opting for unsecured loans which are not a great option as it comes with high rate of interest.

However, secured loans refer to borrowing funds by pledging any of your personal assets which has a benefit of low interest rate. An individual can “Apply For Gold Loan“ as it is the most stable and easy option rather than selling your gold to fulfill your needs. Taking a gold loan can address your short- term monetary needs and gain ownership of your possession when your financial situation gets better.

Let us explore the benefits of gold loan that how it is beneficial than selling it to address the current economic situation:

√ Available at doorstep: Selling gold is not an easy task as you need to search for reliable buyer who will pay you appropriate price. On contrary, getting a gold loan is simple as ShubhBank provides gold loan at your doorstep.

Once you apply for gold loan, a loan officer visits your place to check the quantity and quality of gold. Based upon such evaluations, your loan gets approved and once it gets approved the loan money is transferred to your bank account within 30 minutes.

√ High LTV: It is one of the major benefits of availing a gold loan because you receive high loan to value ratio against the pledged asset. Moreover, it offers you a financial freedom as you can utilize such high loan quantum to pay different pending expenses.

√ Safety features: Selling your ornaments could be your last resort, even pledging it as collateral could give you anxiety because of its security aspect. Now, you need not to worry about these security concerns as most of the lenders offer a robust security system ensuring the gold retrieved from your doorstep is deposited in a secured locker.

√ Competitive rates and flexible repayment options: The rate of interest on gold loan is on lower side as compared to other loans which makes it a reasonable option rather than selling your gold. Furthermore, repayment of gold loan can be done conveniently as borrowers can either pay interest every month or can make bullet payments to reduce the overall amount owed.

√ Nominal documentation: Loan against gold doesn’t require any heavy documentation as compared to other types of secured loans. One just needs to provide KYC details to complete the registration process and “Apply For Gold Loan Online“.

Hence, availing a gold loan through ShubhBank can provide you instant relief while maintaining ownership over your possession. We have proposed several benefits of getting a loan against gold rather than selling it. So, if you want to get a quick gold loan or need to understand more about these features, ShubhBank is one stop solution for all such queries related to gold loan.

Loan against property is a financial tool offered by lender to provide funds to a borrower in exchange for property as collateral. Every financial institution will lend you money on the condition of pledging your property till the repayment of the entire loan amount. Additionally, lender keeps the original documents of pledged property until the borrower repays the whole amount.

When you “APPLY FOR LOAN AGAINST PROPERTY“ and pledge your property to the lender, then the institution has right to use your property for auction in case of non-repayment. However, there is some risk but there are several financial benefits associated with this loan. Here, we will list the benefits of Loan against Property that will help you to figure out if it’s ideal choice for you.

→ High loan amount: It is numbered as top benefits of mortgage loan that you can get a high loan sanction amount. However, the loan amount depends upon the market value of the property to be pledged. Most of the lenders offer 75-80% of the market value of pledged property for the entire loan tenure. Moreover, the sanction amount is decided according to loan to value ratio.

→ Competitive rate of interest: Being a secured loan, the lender has surety that they have borrower’s property as backup in case of any default. Therefore, lending institutions offer Loan against Property at reasonable rates of interest as compared to other unsecured loans. Usually, the interest rate varies from one lender to other.

An affordable interest rate ensures the borrower to enjoy the benefits of loan against property and eases the financial burden of paying huge EMIs every month.

→ Minimal foreclosure charges: It is one of the core benefits of mortgage loan where you can enjoy the minimal to nil foreclosure charges. However, the financial institutions levy 2-4% of outstanding principal amount for the early repayment or closing the loan before its tenure but in case of Loan against Property, most of the lenders do not charge any fees or ask for nominal percentage.

So, it is advisable to ask your lender before you “APPLY FOR LOAN AGAINST PROPERTY ONLINE“ or offline if there is any charge payable or any hidden fees regarding foreclosing a loan.

→ Tax benefits: This is another benefit of a loan against property where you can also get the tax benefits by accessing the loan. A salaried employee can claim the tax benefits on the payable interest under the Sec 24 of the Income Tax Act 1961. The tax advantages don’t levy upon the principal amount.

Hence, now you are aware of the several financial benefits of Loan against Property but always do a proper research about the lender’s credentials because you are going to be in relationship with your lender for a long term. Always go for the reputed lender whom you can trust easily as you are pledging your valued asset with them.

Get a Loan against property from ShubhBank as we always go extra mile in providing your desired loan amount at competitive interest rates with no hidden charges to make your loan journey easy.