Preparing to buy the house of your dreams?

Congratulations!

We know the amount of hard work and planning that goes behind purchasing your first home. It is not only an emotional decision but also one that has a far-reaching impact on your finances and lifestyle. That’s precisely why it is crucial to take out a home loan that is tailored to your financial condition so that you never experience financial stress and enjoy your new home fully.

Remember – purchasing a home is not the same as owning one.

Technically speaking, your house belongs to the bank until you pay down the last rupee outstanding on your mortgage. Therefore, it is essential to understand the finer points of your home loan product so that you never fall behind your mortgage and lose your precious asset.

We Are Here to Help

Finding it difficult to traverse the world of home loans alone?

For most home buyers, including seasoned property investors, it can be challenging to understand the commonly used financial jargon and find the best home loan deal for their situation.

In most cases, borrowers only compare the home loan interest rate, without checking out the extra features, such as the ability to make free additional repayments. Often, they are not even made aware of special products for their situation like self-employed home loans, self-construction loans, bridge loans, etc.

At Loandeals, we are a team of financial experts committed to getting you not only the cheapest but also the best home loan deal for you.

Being financial experts and proud homeowners, we understand the importance of getting the right home loan for your purchase.

Contact us on WhatsApp  +91-8425804441 to receive personalized assistance to secure the best home loan and own your dream house sooner.

Just like the fingers in your hand, all home loans are different. And, it helps to understand the basic features of these home loans to make an informed choice. Below are some of the commonly available home loans in India:

Variable Rate Home Loan

A variable rate home loan or a floating home loan is linked to the lender’s benchmark rate, which moves according to the market interest rate.

Thus, if there is a change in the benchmark rate, the rate of interest on your variable rate home loan also changes accordingly.

So, if you take out a variable home loan, your rate of interest will be reset at specified intervals – which could be monthly , quarterly or annually, as decided in your loan agreement. In case there has been a change in the benchmark rate during the review period, your interest rate will also change, and your loan tenure would be accordingly decreased or increased to make up for the dip or hike in interest rates.

Such adjustment to your loan tenure ensures that you continue paying the same EMI so that your cash flow is not affected. However, if you wish, you could request the lender to revise your EMI instead of your loan tenure.

Home Loan with Overdraft Account Facility

A home loan overdraft facility is a smart feature that may help you save money in interest while catering for future emergencies. Top banks in India, such as Federal bank, Citibank, SCB, SBI, HSBC, IDFC First bank etc., offer home loans with overdraft account facility.

Let’s understand this with an example.

Amit took out a home loan of INR 50 lakhs for 25 years at a rate of 9 per cent per annum. Thus, his EMI is INR 41,960 per month. Now, Amit realises that he has a surplus of 5 lakhs in his savings account. Therefore, he decides to use the overdraft facility linked to his home loan and parks the surplus amount in this account.

The bank considers this amount as a prepayment towards his home loan – which means his EMI will be calculated on the balance of 45 lakhs only. This way, Amit can save thousands of rupees in interest each month, which he can use elsewhere. Besides, he has the option to withdraw the parked amount whenever he wants. Any withdrawal from the overdraft account simply leads to a corresponding rise in the outstanding home loan amount.

Do you think a home loan with overdraft facility is right for you? Contact us on WhatsApp  +91-8425804441 to learn more about the overdraft facility and get the best rates on your home loan.

Self-Construction Loans

Building your home from scratch is a coveted dream. But, is a regular mortgage loan the correct choice for you if you wish to construct your own home?

No. It isn’t.

For borrowers who wish to purchase land and build their own home, self-construction home loans are available that can lead to substantial savings in interest.

A construction loan can be used for:

• Buying land
• Doing significant renovations on your existing home
• Building a home from scratch

These loans are for a short duration and resemble a line of credit. This means, you only borrow what you need and when you need it from a pre-approved upper limit sanctioned by your bank. The best part is that you only pay interest on the amount borrowed instead of the full loan amount.

In general, draw downs are synced with construction milestones. You, or your builder, can request a withdrawal for work that has been completed. An bank employee along with approved valuer of the bank will verify the work before the money is disbursed to the builder.

Once the construction is complete, the lender sends an valuer of the bank for a property appraisal, and you can refinance to a traditional loan after that.

Send us a message on WhatsApp  +91-8425804441 if you wish to know more about the workings of a self-construction home loan.

Self-Employed Home Loans

To approve your home loan application, banks want to be sure of your ability to repay the loan. Therefore, they require specific proofs of income, such as Income tax returns,  GST Returns and Six month bank statements to ascertain your repayment capacity.

However, self-employed individuals like entrepreneurs, , contractual employees, and owners of small businesses may not be able to certify their income with the help of regular documents such as salary slips and income tax returns. For such individuals, the best shot at getting a home loan is to apply for a self-employed home loan or no income paper home loan that requires minimum documentation.

Such loans do come at a higher rate of interest, but they can help you enter the property market before the residential property prices escalate out of reach.

Drop us an email or contact us on WhatsApp  +91-8425804441 if you are a self-employed individual looking for a competitive home loan deal.

Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana (PMAY) is a Central Government scheme that aims to provide ‘Housing for All’ in urban areas by the year 2022.

Several banks extend the affordable housing benefits of the PMAY scheme through a Credit-Linked Subsidy Scheme, known as CLSS. Under this scheme, interest subsidies are available on housing loans for beneficiaries falling under specific categories as defined by the scheme.

• Only families without a pucca house can apply for the benefits of PMAY

NRI Home loans in India

If you are an Indian citizen residing in any part of the world and wish to invest in property or purchase your dream home in India, you can apply for an NRI Home Loan with one of the top financial institutions in the country on Loandeals instantly.

You can go for  variable rate home loan rate and apply for an NRI Home Loan from anywhere in the world. Tracking your application online is extremely easy, and we provide you with full professional support to lodge your application in the shortest possible time.

Drop us a WhatsApp message  +91-8425804441 to have a chat about your requirement and own your home in India sooner.

Eligibility Criteria for Home Loans in India

To apply for a home loan on Loandeals, you must:

• Be an Indian resident not younger than 23 years and older than 55 years at the time of application
• Earn a minimum salary of INR 25,000 per month in metro cities, and INR 20,000 in non-metros
• Have minimum work experience of 3 years and up to 6 months in the current company
• Have a CIBIL score of over 700

If you are a non-salaried individual who is self-employed, you can apply for a home loan up to the age of 65years and be able to show a minimum of 5 years of turnover to be eligible.

How Much Money Can I Borrow

Lenders calculate your maximum loan amount eligibility based on your income. Most banks only consider half of your net take-home salary to calculate your home loan eligibility.

In case you have any other loans, such as a car loan or an education loan, your existing EMI is deducted from this above mentioned amount before calculating your eligibility. This is known as your disposable income.

For example, if you earn INR 1,00,000 per month and pay INR 15,000 towards your personal loan, your disposable income would be [1,00,000/2 – 15,000], which is INR 35,000 per month. Thus, your bank will not approve a home loan with an EMI of more than INR 35,000, as you may not be able to service the loan.

The value of your property also affects your loan amount. In general, banks will allow you to borrow up to 80% of the value of your property for a tenure of up to 30 years.

Confused?

Here’s a home loan EMI calculator that you can use to calculate the maximum amount you can borrow to purchase your home.

Note that it is not mandatory to borrow the entire amount that a bank is willing to lend to you. Instead, use this monthly repayment calculator to work out the amount you would be able to service comfortably without falling into mortgage debt.

The Importance of a Good Credit Score

Did you know that your credit score has a maximum impact on the success of your home loan application?

A credit score of over 700 increases your chances of approval and also helps you negotiate a better rate of interest with lenders.

Get the Best Rate on Your Home loan

Getting the best rate on your home loan is not just about choosing the lowest rate of interest. It is the overall deal that defines whether a home loan is suitable or not. For example, a low interest-rate loan may have a high processing fee associated with it – making it much more expensive as compared to a home loan deal with a slightly higher rate of interest.

Another factor you must decide upon is whether to borrow money from a bank or NBFC.

The main difference between the two is that the interest rates offered by banks are linked to MCLR, while NBFC interest rates are linked to PLR, which they can set according to their requirements.

Borrowing from an NBFC is a good option for non-conventional borrowers, such as those who are self-employed, have low credit score, or want to borrow more than 80% of their property’s value. Note that NBFCs do not offer an overdraft facility.

As you can see, the choice of your home loan and lender depends upon various factors including the interest rate, size of the loan, paperwork required, your credit score, additional features such as overdraft facility, etc. At Loandeals, we offer you competitive home loan deals from top banks and NBFCs tailored to your requirements.

In case you are confused, you can always contact us on WhatsApp  +91-8425804441 and discuss your situation in detail so that we can guide you to the best overall home loan deal for your situation.

Apply For A Home Loan Online

The first step towards getting a home loan is finalizing on the property you’d like to buy. Fortunately, getting a home loan is easier, especially when you apply for it online on Loandeals.

Pick up your phone to call us or WhatsApp  +91-8425804441 us your requirement so that we can match you with the best home loan deals in the market. All you need to do is upload your documents online via mobile or desktop, and relax! We will take care of everything else.

Get me the best home loan deal now.

SALARIED	SELF EMPLOYED PROFESSIONAL	BUSINESSMAN
TDS- FORM 16  Appointment Letter  3 Months Salary Slip 6 Months Bank Statement with salary reflection.	3 yrs full Financial SET  Last 1 yr Bank Statement  Professional Degree Certificate copy	Shop & Establishment Certificate or GST Certificate  3 yrs full financial SET (individual / Company)  Last 1 yr Bank Statement (individual / Company)  Partnership Deed / MOA (whichever Applicable)
COMMON TO ALL(KYC)
Photo of Applicants.  Aadhar Card.  Copy of Valid Passport /Pan Card.  Residence & Office Electricity / Telephone Bill.  Existing Loan Details. (Sanction Letters )  Any other documents that may be required by the Bank / Finance Company.

First step is to finalize the property, which generally takes a considerable amount of time. Once you have finalized the property, some questions that need addressed in case of a new construction are

Banks generally take about a month to release payment from the time of application

The second step is to apply for a pre-sanction home loan from the Bank/financial institution of your choice. Here, Loandeals guides you all the way starting from identifying best rates to submitting all documents.

The third step is Legal and Valuation. At this stage, bank / financial institution verifies documents and evaluates the property in order to determine whether funding was possible. In the case of “Resale property,” the borrower has to present an entire chain of Sale Agreement document copies from the seller. Loan deals, with its in-house team of experts, manage entire Legal and Valuation procedures on behalf of the client and ensures a hassle-free process for the client.

The fourth step is the Loan Agreement. Once a bank receives clearance on Legal and Valuations they enter into an agreement with the borrower. This is a pre-printed agreement by the Bank. At this stage, clients are strictly advised to read the entire Agreement copy before signing.

Finally, the customer receives the Sanction letter from the bank. This is the most important document of all which provides important details such as sanctioned loan amount, effective interest rate and other terms and conditions. Here, once again clients are advised to check the document very carefully before accepting it.

You can also chat with us on WhatsApp  +91-8425804441 to know more about Best Home loan deals for the month.