Having an own house is the biggest dream for all of us! Even for me. Just check out few things here this might help you out:
According to Census 2011, only 69% of the households in India have only one house. If you come to this percentage, congratulations to you, and you do not have to worry. Housing Finance has become more affordable when Indian government launched schemes like Pradhan awas Yojana (PMAY), has introduced excellent housing schemes.
Interest rates for housing loans are currently beginning at 8.35%, and the exchange rate of a home in many Indian households has been changed. To further reduce your burden, you can buy a home under PMAY scheme, up to 2.67 lakh subsidies.
However, getting a home loan is not easy. The first question that many borrowers come to mind – how to qualify for home loans?
Even if you find yourself eligible to get a home loan, the bank does not give you 100% funding. They will have to pay you a payment for cash, and if you can not, your home loan request cannot be processed.
In India, Reserve Bank of India (RBI) rules, banks have the power to pay only the amount of money (profit or loan) to a certain limit on the cost of asset purchases. Banks or other housing finance companies LTV for property worth 20 lakhs and 80%. 20-75 Lacs and 75% worth of LTV is worth a. 75 lux. The borrower must set the balance amount for himself/herself as “down payment”.
Now, the next question arises – can I buy a home without money for cash?
If we tell you to buy your own home without setting up for down payment from your pocket?home loan
Yes, you read! Here are some ways you can do:
1. Pay your cash down to an unsafe loan amount
If possible, make sure that you receive a pre-approved home loan or pre-approved home loan before finalizing the property you want to buy. If you do, you will analyze how much you will be paid by the bank you have applied to. Once you have realized that you are offering a complete amount of bank, you can take a personal loan or a secured loan such as a business loan to pay for your home loan.
For example, the value of the property you buy is Rs. If you offer only 30 Lacs, and 90% of the bank value (ie Rs 27 Lacs), you have to pay 10% (Rs 3 Lacs) in cash. If you do not have the amount you receive, you will have an unsafe loan of Rs. 3 Lacs, Payment Down, and EMIs to repay that amount, thereby reducing your advance financial burden to a great extent.
If the value of the purchased asset is allowed, you can pay your best personal loan by choosing a home loan up to 6 months after choosing the top of your home loan. This reduces your debt burden and the interest rate on home loans is lower than the personal loans. However, the lender will be advised to carefully consider your loan agreement prior to obtaining a personal loan by charging the payment fees you pay during your loan foreclosure.
In addition to being an inexpensive alternative, housing loan can be taxed under Section 80C of the Income Tax, 1961, but a personal debt is taxable.
2. Use Housing Loans for Furniture & Fixes
Let us better understand this example:
In the above mentioned, the property you want is worth Rs. 30 lakhs and bank 90% (Rs 27 lakhs) on your property market value. However, there is a substitute for you. If the associated property’s market value allows, you can get more funds from the banks and fixtures cost banks. So, in this particular case, you get Rs. 3 Lacs like Furniture and Fitches to use to cost and take down payment.
You may also consider some of these ways:
3. Take a loan from your employer. Most employers provide general interest loans at low-interest rates for their employees. The process is very simple and requires documentation. So, if your employer has provided such a facility, use it to reduce the payment.
4. Take a loan against securities. Many banks provide debt against financial assets such as securities, shares, insurance policies and others. Deposit Shares, Mutual Funds, RBI Relief Bonds, UTI Bonds, KVPs, or NSCs can make them payable and arrange for down payment. Furthermore, you have an Employee Provident Fund Account in 5 years, and you can get a loan from the account for down payment.
5. Taking an HDPL or Home Loan down payment. Some financing companies such as Mutual Finance offer such loans for housing loans or home extension, modification, rebuilding or renovation. Debtor loan of Rs. 1 crore (subject to change) of 11% interest for 1-5 years. You do not have to submit property documents to obtain this loan and do not have a processing fee or any other additional expenses.
6. Taking from relatives or friends. If you share a strong relationship with your relatives and relatives, you can also choose this option to arrange for a payment down home loan. The terms may change according to your relationship.
With these smart ways, you can easily arrange for your down payment. However, if you plan to buy a home, you should always start with the starting revenue to reduce your debt burden. You can prepare yourself for down payment in mutual funds, CIPs, fixed deposits, provident funds, recurring deposits and other savings schemes.