5 elements to look for in a home loan

We present five loan features to understand and look out for when you apply for the housing loan.

Are you about to take a home loan for the first time? You must have many questions about the process and what to expect. Allow us to simplify the concept of the home loan by presenting the following five features of a home loan:

1. Loan eligibility. Start by finding your home loan eligibility. This is the amount of money that your bank will give you as the loan amount, based on certain factors: income, age, number of working years left, credit history, place of work, etc. When you input these figures in a home loan eligibility calculator, you get the loan amount that the bank will offer you. Knowing your eligibility helps you rejig your own finances, and also shortlist the properties that fit your budget.
2. Interest being charged. The bank housing loan is offered at a certain rate of interest. Post-demonetisation, banks lowered the lending rate on housing loans. Thus, bank housing loans are now offered at rate of 8.65% to 9% across major banks in the country. Examine the interest rates across different banks before making your choice. 
3. Type of interest being offered. The bank housing loan will be offered at either a fixed rate of interest, or a floating rate of interest. Under a fixed rate of interest, you will continue paying the same amount of EMI throughout the tenure of the loan. As opposed to this, you will pay the interest on the reducing principal as the loan is being repaid over the years. Most people opt for the floating rate of interest because it results in lower total repayment to the bank. 
4. The evaluation process. After you apply for the home loan, the bank examines your credentials, the property you wish to purchase and also the property document. This process may take a while to complete, since the checking is done on-site by legal and construction experts. If you are in a hurry to close a deal on a house, it is better to apply for the loan as soon as possible so that you can get the funds disbursed quickly. Premier banking institutions conduct these checks quickly so that customers are not hassled by delays.
5. Processing fees.These are fees that are paid towards getting the final disbursal. The fees include application processing fees, legal evaluation fees, stamp duty and registration charges (after paying at least 20% of the property’s price), pre-EMI cheque, etc. Get the entire spectrum of fees and charges and add them up before you apply for the bank housing loan.If you have a relationship with your bank, you can get some of the charges waived off.

Dreams can be achieved!

Nowadays, dreams regarding homes and own residences are quite natural but setting the goal of achieving them without any hazards has become one of the rarest things. But various renowned banks will help you realize your dreams more easily by facilitating home loans. Many think it impossible to get a home loan, and hence, dreams and desires regarding homes become quite difficult or almost unattainable. 

Premier Banks have been helping in the marketing and shaping of the global growth which in a way directs path for many new golden opportunities to increase or grow your wealth, without much complexity. The Auto Saver mechanism enables higher interest rates for all fixed deposits on the idle funds that you possess in your savings bank accounts. Also, home loans in India have become something of a moot point in recent times though several banks take all the steps to make it possible. Today, banks offer home loan solutions through online mechanisms and operations are pretty uncomplicated and seamless, to say the least. Your dreams will become a reality if you take assistance from banks that provide the best interest rates and other facilities to customers. 

Besides convenience various banks are focusing on paperless banking and the banking experience of the clients. All the processes to apply for becoming a customer are online and easy. 

The promise of your dream home has many factors which make it a bumpy ride – the spiraling real estate costs, lack of funds for down payment or the fat EMI that may incur. However, here you need to invest a little time in research and compare several banks and find out a true friend who helps to fulfill the home dream. For home loans in India, the home loans by various banks are created to offer the faster acquisition of the desired property. 

Purchasing a home can be a bit stressful. However, if are all prepared it can be a fun and exciting experience. Certainly, finding the right home loan is an important step in your endeavor. Let us have look at some tips that will help you turn your dream into reality.

• Start saving today for a down payment.  If you are ready with a large down payment, your burden will reduce automatically and you are more likely to find the best deal.
• Having a good credit score and credit history lets you get the best deal on your home loan.
• Get your documents ready to accelerate the application process.
• Use home loan calculators to find out how much home loan can you afford.
• Compare all the offers. Check every detail, differences in points, interest rate, fees, charges, etc. to find the best option.

You can be an investor, a first-time buyer or planning for an additional property; you will have an appropriate loan plan here. Banks have attractive rates of interest that suit your particular requirement along with repayment flexibility. You can simply pay the interest during the construction level, which saves your money in the initial stage, isn’t that great?

For ‘mutual’ consideration: Taking a loan against MFs

Those who have invested in mutual funds can borrow money against their investment – this article explains how.

In today’s day and age, many people looking to create wealth for the future seek the right investment solutions to provide them with stable returns over a period of time. Many also seek options in the capital markets, and mutual fund investments find particular favour with investors. Mutual funds offer diversification and reduced risk, and also increased exposure in the equities space. 

Mutual funds also provide liquidity when there is a financial emergency, by way of loan against mutual funds.

How can you borrow against mutual fund investments?

You can approach a reputed financial institution with your loan request – this loan is granted against the money invested in mutual funds. In essence, the loan against mutual funds is an overdraft to get liquidity for a short term of time. The lending institution takes a lien against the mutual fund units you wish to pledge, depending on their value at that point of time. The lien is dissolved when the loan is fully repaid – at this point, you get complete ownership over the mutual fund units again.

However, the terms of the lien are strict – the bank holds the funds till the loan is fully repaid. You can approach the mutual fund house with a request letter to transfer the lien to the lending institution.

The benefit of this capital market solution is that you can leverage your idle mutual fund investments to get short term monies for professional or personal requirements.

The mutual fund units determine the loan

As with loan products in the capital market solutions portfolio, the loan against mutual funds is determined by the type of fund and how many units of the fund you own.. The interest rate is often a little lower than that of personal loans, and the tenure of the loan is up to one year. The best financial institutions in India offer a minimum of Rs 25 lakh loan against mutual fund units.

Some points to consider about taking loan against mutual funds:

• It is possible to use the loan money for both personal or professional needs
• The Mutual Fund Registrar marks a lien against the fund units you own, and which you wish to transfer to the lending institution
• The loan amount is decided basis the quality of the fund units you own, and the fund units must be on the list of approved securities furnished by the lending institution
• Normally, the loan amount margin is 50%

Insurance Awareness among Millennials: Current Scenario and the Way Forward

According to the Pre-Budget Economic Survey 2013-14, India will be the youngest country in the world, with 64% of its population falling in the age group of 20-35. The young population of India comprises Millennials or citizens in age group of 20-30, who currently have a stronghold on a significant portion of jobs and marketplaces in the country.

As much as this ambitious and go-getter generation likes to 'work hard and party harder', it does not seem to do justice to its insurance needs, including savings plans and pension plans, in India. As per another survey conducted across all metros and Chandigarh, Lucknow, Hyderabad and Ahmedabad, on 1,400 people with monthly income of Rs. 50,000 and above, 50% of the income was spent on household items, followed by monthly premiums and EMIs.

And while Millennials also topped the list when it came to spending on leisure and entertainment, only 5% of the high spending millennial group's expenditure was towards health, as showed by a survey, Understanding Lifestyle and Attitude Towards Health of Millennial. While the survey revealed a certain level of awareness of the importance of life insurance among those surveyed, another finding from the survey revealed that most Millennials believed that health insurance should be bought before 25 or at least before 30. This reveals the overall low awareness and limited understanding of insurance benefits among the masses, despite the easy availability of life insurance online. 

Insurance Buying among Millennials 

A country, whose major driving force happens to be its Millennial population, can't afford to ignore the present attitude and perception of its youth when it comes to planning and securing the future for themselves and their family. Owing to the critical need of ensuring that the youth invests in saving plans and gets insured, many insurance companies have introduced life insurance plans catering the diverse needs of Millennials, with the convenience of buying them online. The digital platforms on which the insurers in India offer their insurance and retirement plans, such as pension plans and annuities, ensure quick and seamless transactions to the generation that believes in saving time, buying online and doing multiple things at a time.

Although the current figures on the number of insured youth do not correspond with the envisioned number, the rising health awareness and positive shift in fitness trends do give some hope. The more the youth is aware and cautious about their health and protection, the better state they will be in to explore the untapped benefits and protection provided by insurance.

4 cash management tricks you will swear by

Presenting the best budgeting and management tips that will hold your business in good stead always.

The biggest businesses in the country have several financial tricks up their sleeves. No, we’re not talking of money made from malpractice; far from it. Successful companies understand how to manage and allocate their finances so that they always maintain healthy reserves and meet their daily working costs. These are lessons in financial management that all companies must learn.

If you are a business owner wondering how to manage your finances better, consider these 4 simple cash management tricks:

1. Trim the fat. Many businesses today are over-staffed. They also operate out of huge premises. The company spends a lot of money every month paying staff salaries and office overheads. Imagine how much money can be saved by downsizing and shifting to a space that accommodates the remaining staff comfortably. You can put the staff members who you do not need daily on contract or commission-based jobs, or lease out part of the office that is not being used, or even allow some staff to function remotely.
2. Streamline your receivables. Several companies are periodically in dire straits because their customers do not pay them on time. This causes a gap in working capital. Start by billing customers the moment the project is completed. Follow up on unpaid payments diligently. If some customers are habitual late payers, you can incentivise early payments by offering a discount on the bill amount if they pay within 15 days of receiving the bill. Customers will certainly see merit in saving some money – and your bill will be cleared earlier! 
3. Let your bank become your financial manager. Your bank can do much more than hold your business income and clear cheques. Entrust your bank with cash management services for your company. The best banks today offer a gamut of cash management services in India. The bank is better placed to study the company’s finances, offer good products and services tailored to the company’s requirements, and manage payments and cash inflows. Cash management services also encompass forecasting and planning for the company.
4. Be careful about taxes. You may lose a lot of money in penalties and invite the tax authorities’ scanner on your finances by not paying your taxes on time. This omission may not be deliberate, but it can be costly. Hire a competent firm of chartered accountants who can file your tax returns on time and get the payments settled (if you owe tax to the Government). You must also get your firm registered for GST, so you must understand the new taxation regime from April 1, 2017 onward.