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SOME SMART WAYS TO PREPAY YOUR HOME LOAN

Posted on Saturday August 22nd, 2020

Owning a home is something special that all people tend to with their hearts. It is one of the biggest investments of life where you will end up spending most of your time as your family will grow in it and so will you. Every rich and poor wants to have their own house and to get so, they opt to choose a home loan to fund such big purchase. Taking a home loan is easy and convenient but it is more important to clear it as soon as one can. You can’t spend your half of the age in paying back the home loan. Here, we have discussed some smart ways to prepay your home loan and it will be possible if you plan well.

• Choose a loan with part payments: When you receive a loan initially, it is based upon your income and credit score but over a period of time, your income will increase and in turn your affordability. If you have taken the loan for the maximum tenure, you are allowed to repay more over a period and finish it off before tenure. Always check for the lenders that offer pre-payment feature that you can pay more than the EMI when possible.

• Change your installments amount as your income increases: Every person in their life grows their career and so does their salary. Make sure that you must increase the loan installment as your income increases which will reduce the interest rate efficiently. At that point, lender will help you in reconstructing your loan as per current salary of yours resulting in strengthening of your creditworthiness.

• Always aim at prepaying the loan: When you plan to Apply For Home Loan you must set some money aside to make the down payment. If you take a loan with prepayment features, then divide your investments accordingly. Everyone has specific goals regarding their investment plans so clearing a home loan should also be one of them.

• Invest in SIPs to prepay the home loan: If you start investing in mutual funds at early age, you can accumulate a great quantum over a period of 10 years or so. You can use the chunk of money from these funds to clear off the considerable amount of your home loan before the tenure ends. Investing in SIP’s also helps you to save on taxes resulting in double profit.

• Use your other income sources towards the prepayment: There are great chances of acquiring other sources of income either a rent of property or other variables from work area. This extra income can be directed towards prepaying the loan.

A smart tip to Avail Home Loan is to start your search wisely and prepare yourself for good amount of down payments. Nowadays online home loans are popular in lending market which offers you doorstep services, customer support and you can also check your credit score also. Always remember prepaying your home loan not only relieve your financial burden but also gives you the space to plan for other financial investments.


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SIGNIFICANT POINTS TO REMEMBER WHILE TAKING THE HOME LOAN

Posted on Friday August 14th, 2020

A beautiful home is a personal asset that everyone has dreamt of owning for a long time. If you are planning to purchase a new house, these are the two things that you will consider instantly a pretty home and about applying for a home loan. However, what matters is qualifying for the home loan. It is most important for the lenders to analyze your repayment ability, which is essentially evaluated based on your earnings, expenses, savings, work profile, financial capability, and repayment history of loans and other dues. A nasty credit score and therefore the ghosts from the past, i.e. your credit debts or poor payment history can pose a drag while qualifying for a home equity credit. Here are 4 important tips to see before apply home loan online:

Your Credit score: – A credit score is like an inspiration that can be a foundation for your easy home loan application process. This score depends on how consistent you are good at paying your past EMI and loans. The higher the credit score, the higher the chance of the loan getting approved. And also one can expect the best rate of interest on the home loan as a bonus. A trusted bank or financial institution will make a report on your Credit score. Ensure you check your credit score at least six months or a year before you Apply For Home Loan.

• Required Documents for a home loan: – Before you go and apply for a home loan, it is necessary documents required and ensures they are available before you approach a bank or financial institution.
1. Pan card or Aadhaar card to verify your identity.
2. Bank statements for at least 12 months. Make sure you maintain a reasonable balance in this account over the past 6 months.
3. Last 3 months salary slips.
4. Income Tax Returns for the past year or two years.

• Consider you’re Budget, down payment and EMI: – Define your budget for buying a home, how much money you can consider for the down payment, and how much loan home would you require. Mostly you will get 80% of the value the property as a home loan if your income seems sufficient. Calculate your EMI range you are comfortable with, as that will help you to decide the tenure of the loan. You can use online EMI calculators.

Interest Rates of the loan amount: – The borrowers have to pay interest on the loan amount in a calculative way. It may vary from 6.70% to 6.95%. As the loan amount is reduced after some EMI, the amount of interest is also reduced. Home Loan Interest Rates may vary from bank to bank. It also depends on RBI changes in interest rates. The buyers must have some processing fees during the transfer of an amount.

Taking all the above points into consideration, you can proceed to apply for the home loan. Thus it will improve your chances for a quick home loan approval.


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HOW TO APPLY FOR AN ONLINE HOME LOAN FROM SHUBHBANK?

Posted on Monday July 20th, 2020

Home loan is a financial product that an individual seeks from financial institution at a predefined rate of interest and have to repay it to lender with EMI on every month. When borrower takes a loan, then customer’s property is taken on security as collateral. Home loans have given people opportunities that are low on financial assistance as well as it works as an effective tax saving option. Nowadays, applying such loan has become digitized; therefore, customer can easily secure it from comfort of his/her personal space. Here, we described the process for loan seekers that how to apply for an online home loan from ShubhBank as process of visiting branch has removed with the advent of technology.

One can Apply For Home Loan simply by clicking the apply button on website i.e. ShubhBank.com. We will get in touch with our clients and process the loan approvals after collecting the documents from their doorsteps. Once the documentation is completed, loan money gets disbursed to your bank account electronically. The borrowers can compare interest rates of different lenders at real time basis to online platforms. An individual can easily track interest rates, penal charges as well as terms and conditions from the comfort of their homes.

SOME BENEFITS RELATED TO ONLINE HOME LOAN

• Convenient and Transparent: Most of the traditional home loans require plenty of time of bot the loan seeker and lender. Therefore, online home loan is an instant answer to such time consuming procedures as you can get loan approvals in as fast as just in few minutes or hours. The major progression behind this could be contributed to the digitization of process from online application to approval and fast disbursal.

• Quick Processing: The conventional method of applying a home loan has always left the customers waiting for numerous weeks. This wait becomes more painful in case when your application got rejected. The e-loans have reduced the turn round time for customer responses as lenders can now process applications and notify loan borrowers about whether their application was approved in matter of couple of days. It saves mark able time for the borrower in making the decision and hastens the process of handing over down payment for their dream home. The customers don’t have to wait for weeks to step into their newly purchased home with quick approvals and disbursal of funds.

• Determine your Eligibility: If person apply for traditional home loan, he/she requires submitting a pile of documents to prove their eligibility for a home loan whereas if you Apply For Home Loan Online it gives client an option like eligibility criteria checklist, EMI calculator and can compare different lenders on particular lending website.

If you are looking for home loan in upcoming days, visit ShubhBank.com as the home loan is exquisitely designed to ensure a quick approval and express disbursal into your account in just few days. Getting an online home loan from us is very convenient and easy.


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HOW TO ARRANGE THE DOWN PAYMENT FOR YOUR HOME LOAN?

Posted on Monday June 15th, 2020

Buying a home is a biggest investment that involves several factors that can impact your life. One of the major factors which one needs to decide is how you are going to finance your dream home. Whether you want to use your savings or want to Avail a Home Loan. Home loans help you to purchase your dream home without any hassle. However it is the most convenient way to finance your purchase but still you need to pay some amount from your pocket as a down payment to secure a loan. The portion of fund generally varies from 10 to 30% with most of the lenders. Here, we guide you about how to arrange the down payment for your home loan and what are the benefits of it.

Benefits of higher down payment
• Lower rate of interest
• Unburdened principal amount
• Lower processing costs
• Larger home equity
• Reduces the debt burden

When you are in early years of age, you may find yourself in difficult situation when it comes to down payment as your saving are in small figures. Nowadays, the price of real estate are rising day by day and arranging 20-30% of total cost of home is difficult for many of us. But if you wait to save more, it is possible that property prices may also increase, so it is always better not to delay when you have zero in some suitable property. If you are planning to Apply For Home Loan you may need to set aside some short term money goals and need to work on money management skills to arrange for the down payment. There are certain ways to arrange lakhs of money through which it can be made easier to fund your down payment.

Few ways to arrange money for down payment
• Start savings in your early years.
• You can borrow against your insurance policies such as term insurance or PPF.
• You can use money from your investments like FDs.
• You can also opt for a personal loan of a small amount.

Well, every lender either banks or NBFCs ask for a particular proportion from the total market value of your home as the down payment. The down payment ranges from minimum to maximum and varies from 10 to 30%. There are both merits and demerits related to it but the thing you should keep in mind that you should make a down payment as per your affordability. If you are availing an online home loan, never rush to pay higher down payment by liquidating your savings or investments as this can back fire you and you can be trapped in debt resulting in financial crisis and fewer returns in the future from policies and investments. In case you are unable to arrange required percentage of down payment then you can negotiate with the lender and ask him to reduce the payment portion percentage to avoid the burden of loan and making your loan journey easy on your pocket.


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THE ASPECTS YOU NEED TO LOOK OUT BEFORE YOU COMMIT TO A HOME LOAN

Posted on Friday May 22nd, 2020

A home is one of the most important assets of your financial security. Once you have your own home, then there’s nothing that can threaten your financial future. Buying a home is the biggest investment of someone’s life, so you need to keep all your short and long term goals in your mind before planning for it. A right purchase and best home loan should be in your priority list. Being aware of these two aspects can help you to avoid any debt trap in the future. Always look for the loan offers that suit you the best as your requirements and preferences are going to vary from others. Now you have better idea of the aspects you need to look out before you commit to a home loan, it’s time to tell you more about your rights as a borrower.

When you apply for a loan: When someone applies for a home loan, the lending institution is supposed to provide you all the information regarding:
• Applicable interest rates.
• Payable processing fees.
• Prepayment charges.
• Charges for converting interest rate types(either floating or fixed).
• Miscellaneous charges that might affect the interest rate on loan money.

When loan gets sanctioned: After your Home Loan Application gets sanctioned, you have the right to ask the lender about following things:
• Terms and conditions of loan agreement.
• Sanction letter.
• Written receipt for all post-dated cheques.

During tenure period: In case you forgot or unable to make the repayments for any reason, there is a set procedure which may not cause a mental stress to you and lender has to follow for the recovery of outstanding balance that are given below :
• Reminder to the borrower through notice
• Notice prior initiating any recovery proceedings against you
• Sending an authorized professional who shall deal with the borrower in civilized manner
• Contact the borrower to maintain the desired decorum and decency.

After repayment: Once you are done repaying the whole loan amount along with interest rate, you need to ask the lender for following documents:
• No due certificate.
• Original documents of titles of property pledged as collateral for home loan.
• Unused post-dated cheques.
• Letter of final settlement signed by authorized official of the lending institution.

When you Apply For Home Loan read the fine print carefully so that you won’t miss out minor details that could possible affect your finances in the future. You are supposed to know all the exact details of your loan and documents related to it. No doubt, there is a long list of things that you have to remember but keeping your rights in your mind will help you to stay calm headed in the loan journey as sometimes you are unable to get the assistance from your family and friends. You have to be sure about everything from your eligibility criteria and rights to the property you are buying. We hope you are more aware now about the rights you have while applying for a home loan to make your purchase a best decision of your life.