Friday, 25 December 2020

Enterprise Resource Planning Systems and Field Service Management Software Open New Revenue Streams

The field service management market has seen steady inflation with the latest research that predicts a growth from $1.78 billion in 2016 to $4.45 billion in 2022. This growth influences more businesses to choose field service operations as an option when deciding upon their growth strategies. The world of field services is reaching great heights. In an era where there is an advancement in technology, the companies' main goal is to gain maximum profit through their services.

As of now, the companies have opted for new business ideas to cover the flaws which the existing enterprise resource planning systems were incapable. The ERPs' functions are unable to handle are mobile technician scheduling, contract and warranty management, and subcontractor management. an integrated field service management software solution helps in managing all these functions.

If these two business components can be combined together, field service providers can improve their offerings and thereby open fresh opportunities for revenue. The amalgamated solution can better the prospects for the future of the field service lifecycle entirely. 

No Standard Solution :

Even though the combined concept of these two business components sounds beneficial, it is not easy to bring two different enterprise platforms together. Integrating the two systems is not very simple. The solution is not a single step ahead. Combining the FSM software along with the other business tools can pose as a challenge.

There is no proper solution that can help all the providers. Field service software needs to be highly configurable. It needs to be flexible enough to manage data and business processes which is distinctive to each customer. 

The providers need to make sure that they are looking for a flexible solution that is capable of subsuming multiple services and is also able to accept configuration from their existing ERPs. For instance, there needs to be a solution that can combine its own core functionality with that of multiple independent software vendors. This would mean that those vendors can help with planning the integration plan. Each arm software builds around in a way that allows them to stick to their own identities and USPs while also help in facilitating maximum compatibility with central teams. 

Important Merging Points :

No matter whichever FSM solution is combined alongside whichever ERP solution, for the integration to run successfully, a few key areas needs to be considered. In modern business, data is immensely important, and this is held by the ERP solution. If the data is about the customers, suppliers, inventory, etc., which is accessed by the FSM platform, the chances are that permission is granted for data transformation. This is the reason why the decision needs to be taken on whether this function will be handled by the FSM software of the ERP will be allowed to control.

The other field which requires data sharing between FSM software and ERPs is sales and purchasing. The FSM software requires to extract information from the ERP to create invoices, sales orders and service orders. Then this data stores in the FSM. The alternative option is to take data from both systems, which will increase the complexity of the task and is also quite time taking. In this case, information about the price needs to confirm in the ERP before the FSM solution allowed invoice creation. 

We can also take stock as an example in this case. It will demand the on-site technicians to adjust their inventory levels in order to carry out their job. If the FSM software is able to modify the master data, then it will be easy to adjust the stock levels in no time.

The other example that we need to keep in mind is scheduling. The properly planned ERP solution, it provides visibility into skillset, availability and location as well as their holiday time. This will also help in changing customer contracts that might have a possibility to affect regular service. If there is no such holistic view, it will be difficult for the companies to allocate works to engineers. 

Another field that needs consideration is the mobile data requirements of on-site technicians. FSM data access considers important as engineers need to utilize these systems regardless of the fact that they have internet connection or not. Ithe data can be accessed without an internet connection, this will help them to work more efficiently, with the database being in sync with the ERP once there is an internet connection.

If we optimize and streamline all the processes between the two systems via the exchange of information that is quite helpful, then this will lead to benefits for the business and its customers. If less time spent on operations through optimized processes and also fast delivery services, the businesses will be able to achieve better revenue for their company. 

Conclusion :

With proper planning of FSM and ERP working together, it can open additional revenue streams for businesses which will help in gaining profit by increasing the expectations of the customers thereby helping in the growth of the business. If there is no effective solution, there can be chances of duplicate data entry and lack of visibility that will negatively impact the business processes. This will hamper the growth of the business and prevent the business from looking after the demands of its clients.

If the companies want to earn profits through their services they should look after the efficiency, easy use of technology and the access to information. 

Tuesday, 1 December 2020

Workforce Management Software Outlook 2020

The Marketing resource management market is developing and expanding at a significant pace. The marketing resource management is mainly a technology which is utilized to effectively handle individuals, related technology and operations, which includes production, planning and design of the marketing process. By using the functions, marketing departments can plan their budgets, specify the expenses and period closeouts.

Field workforce management solutions offer a mix of products and services which provide seamless interconnect between all the workforce management points such as time and attendance management, absence management, workforce scheduling, analytics, performance management, desktop and process analytics, and others. These solutions can either be integrated within one complete product offering or be opted as per requirement, making the implementation flexible for organizations.

The marketing resource management market is primarily driven to the rising demand of marketing integration with various systems that have paved the way for technological firms to provide marketing resource management applications in combination with project management as well as capacity planning. Even the rising diversity in delivery channels has fielded growth. However, the absence of application has negatively impacted the development of the marketing resource management market, considering the global scenario.

Regional Analysis:

The regional analysis of Global Marketing Resource Management Market is considered for the key regions such as Asia Pacific, North America, Europe, Latin America and Rest of the world. North America is the fastest-growing region across the world in terms of market share. Whereas, owing to the countries such as China, Japan and India, the Asia Pacific region is anticipated to be the dominating region over the forecast period 2018-2025.

North America is expected to be the largest workforce management market during the forecast period. The market in this region has been further categorized into the US, Canada, and Mexico. In 2019, the US-dominated the workforce management market, followed by Canada and Mexico. Rapid advances in digital technologies and the presence of early adopters in the region are some of the factors driving the growth of the market. Moreover, increasing mobile penetration and adoption of cloud across organizations are also some of the factors responsible for the development of the market. Asia-Pacific is expected to have the highest CAGR during the forecast period, 2020-2026. This means that the region has immense opportunities in terms of revenue growth. This is because more and more enterprises are looking for automating their workforce management process, therefore creating more demand for workforce management solutions in the region.

Impact of COVID-19:

The COVID-19 outbreak is causing widespread concern and economic hardships for consumers and business communities across the globe. As the governments make significant interventions in response to the pandemic, businesses are rapidly adjusting to the changing needs of their employees, customers, and suppliers, while navigating the financial and operational challenges.

Throughout January and February, a majority of the companies continued their business operations on-premises. However, March saw the industry take strict action to promote work from home, in sync with government advisories, to keep the working personnel safe, thereby accelerating the adoption of the remote working culture.

The outbreak of the pandemic has caused a slowdown in the business, which might lead to recession and reduced IT spending. Furthermore, it also caused many of the locations to close down their doors leading to an increase in the national unemployment rate. According to the US Bureau of Labor and Statistics, the increase in the unemployment rate during the COVID-19 pandemic is the most massive over-the-month increase in the rate since January 1975.

For businesses that are still operating, there is plenty of stress as they are coping with difficult situations such as:

  • Operating from remote locations
  • Confirmation of business continuity and employee productivity
  • Protection of front-line employees who may still need to come into the workplace.

The small and medium-sized enterprises and the non-IT companies in India are some of the most affected during the pandemic due to the lack of knowledge and awareness related to collaboration and communication tools.

Coping with the situation:

Workforce management solutions and services are expected to gain opportunities from the remote workforce as the organizations strive to keep track of employee productivity and business performance. During periods of remote working, workforce management solutions help enterprise management and HR to track and optimize the productivity of the employees and maximize employee performance. Furthermore, it helps in forecasting employee requirements, creating and managing the work schedules, and analyzing performance.

The solution collects real-time data about employee performance, manages the company's resources from a remote location, helps in carrying out employee training, recruitment, management, and scheduling, and analyses and forecasts the productivity and business outcomes.

The ongoing spread and reaction to the COVID-19 virus in various countries across Europe, North America, and Asia-Pacific are expected to cause a delay in the economic restart. However, the interest in workforce management solutions is expected to increase as a few corporate giants are planning to continue this work from home trend even after the effects of the COVID-19 pandemic have reduced.

Growth and Forecast:

The high demand for automation across different sectors is propelling the adoption of workforce management solutions. This is expected to cause the global workforce management market to thrive at a 10.8% CAGR during the assessment period.

Workforce management systems offer valuable insights into employees' performance. Rapid industrialization is creating numerous job opportunities. Hence, the expansion of the workforce base requires a useful management tool. It is due to which workforce management systems are experiencing a high rate of adoption across different verticals. Thus, the global workforce management market is expected to witness a sharp rise in its valuation in the years to come. Additionally, the growing number of startups and the adoption of workforce management systems across SMEs is also likely to spur its market growth.

The Workforce Management Software Market was valued at USD 2.4 Billion in 2018 and is projected to reach USD 3.18 Billion by 2026, growing at a CAGR of 3.1% from 2019 to 2026.

Read More: Field Force management Software



Tuesday, 24 November 2020

Online Appointment Scheduling Software Market size 2020-2027

The global appointment scheduling software market is expected to reach 546,31million dollars by 2026 from 205.85 million dollars, growing at a CAGR of 13.1% from 2019 to 2026.

About:

Appointment scheduling software offered business tools that allow clients to book, reschedule and cancel appointments through a web interface. It is specially designed so it can be used by professionals and businesses for managing booking or scheduling appointments. Some of the common applications of this software are calendar integration, payment processing, mobile compatibility, employee & customer management, appointment reminder and others. It is also known as online booking software. It lets its user's book appointments conveniently according to their preferred time with the hassle of overlapping the appointments and wasting valuable time. 

Advantages:

This appointment scheduling software market report provides details of:

  • new recent developments
  • trade regulations 
  • import export analysis
  • production analysis 
  • value chain optimization 
  • market share 
  • impact of domestic and localized market players
  • analyses opportunities in terms of emerging revenue pockets
  • changes in market regulations
  • strategic market growth analysis
  • market size
  • category market growths
  • application niches and dominance
  • product approvals
  • product launches
  • geographic expansions
  • technological innovations in the market. 

It eliminates issues experienced in pine based booking, saves working hours for staff members handling customer service, provides an optimized, updated calendar and all of this overall leads to market growth. 

Increasing usage of artificial intelligence in appointment scheduling software for better performance is expected to create new opportunities for the market. Some of the factors such as increasing adoption of smartphones, the rising popularity of m-health apps, growing demand from the corporate sector and the rising popularity of mobile appointment scheduling software will enhance the appointment scheduling software in the forecast period of 2020 to 2027. The dearth of awareness about appointment scheduling software and lack of proper data network infrastructure is expected to hamper the market growth in the mentioned forecast period.

Market size based on region:

Appointment scheduling software market is analyzed and market size, volume information is provided by type, organization size, end-user industry and application as referenced above.

The countries covered in the appointment scheduling software market report are the U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of the Middle East and Africa (MEA).

North America will dominate the appointment scheduling software market in the forecast period of 2020 to 2027 due to rising popularity of online booking systems, increasing penetration of mobile phones and growing adoption of digitalization in the region.

The country section of the appointment scheduling software market report also provides individual market impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. 

Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Global Appointment Scheduling Software Market Scope And Market Size:

Appointment scheduling software market is segmented on the basis of type, organization size, end-user industry and application. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the difference in your target markets.

  • On the basis of type, the appointment scheduling software market is segmented into web-based, SaaS, mobile app and others.
  • Organization size segment of the appointment scheduling software market is divided into small & medium-sized enterprises and large enterprises.
  • Based on end-users, the appointment scheduling software market is segmented into corporate, beauty & wellness, education, healthcare and others.
  • The application segment of the appointment scheduling software market is divided into commercial, personal and others.

Increase in adoption of appointment scheduling software for facilities management and rise in demand for appointment scheduling software for smart cities development and urban planning are expected to drive the growth of the appointment scheduling software market. However, the availability of open-source appointment scheduling software is expected to restrict the growth of the market. 

Covid-19 Impact On Appointment Scheduling Software Market:

The spread of coronavirus has crippled the entire world. Nearly all countries have imposed lockdowns and strict social distancing measures. This has resulted in disruptions of supply chains. However, increasing concerns with respect to social distancing and the emergence of the work from home culture have given a boost to digital products and services over this period of time. This has resulted in accelerating the demand for appointment scheduling software across the world.

Appointment Scheduling Software Market: Scope Of A Report

Fact.MR published an exclusive forecast report on the appointment scheduling software market for the period of 2020-2030. The foremost objective of the report is to pitch spearhead insights on the market scenario, demand generators, and technological advancements in the appointment scheduling software market. Also, the appointment scheduling software market study addresses key dynamics that are expected to diversify the adoption and future prominence of appointment scheduling software.

The report on the appointment scheduling software market begins with an executive overview, in which product definition has been provided. The report further proceeds with the taxonomy of the appointment scheduling software market, elaborating on key segments. Also, the report outlines visionary insights on the dynamics of the appointment scheduling software market, including the drivers, restraints, opportunities, trends, and pricing analysis, along with key buying factors.



Friday, 25 January 2019

What are the mistakes that can ruin your home loan?

Availing a home loan is a tedious process which involves a huge sum of money. Before applying for a home loan, the applicant should do his or her research carefully and one can never be too careful. Mistakes while availing a home loan can prove to be fatal. Some of them are:
  • Not having enough money to repay back the principal loan amount: This is the most fatal mistake a borrower can make when availing a home loan. The maximum loan amount that is approved by a financial institution is 80% of the total property value. While providing the loan, the financial institution will also check the CIBIL score of the applicant. Before the borrower applies for a home loan, he or she must make the down payment first. For instance, if the value of the property in question is Rs.1 crore, the maximum loan amount that can be availed by the borrower is Rs. 80 Lakh. The difference between the loan amount and the principal amount is the down payment value. The down payment amount should be deposited by the borrower at the time of availing the loan.
  • Availing a loan with the principal loan amount that is not affordable: Before you apply for a home loan, consider the EMI amount that is to be paid every month. Ideally, the EMI amount should not be greater than 30 to 40% of the total monthly income of the borrower. Determining the EMI amount on a future increment is ill-advised. 
  • Opting for the wrong home loan option: With so many home loan options available in the market, it is not easy to select the right home loan. Home loans are structured in different ways with some financial institutions offering floating rates, others offering semi fixed rates and overdraft benefits. It is the responsibility of the borrower to identify his or her requirements and select the home loan depending on that. Often, the applicant ends up paying more money than he or she probably should. 
  • Opting for a loan with the incorrect tenure: Selecting the loan tenure is also very important for the borrower. It depends on the financial capability of the borrower. If the loaned amount can be paid back in the determined loan tenure, the borrower should opt for a short-term loan as the rate of interest is usually low. If the principal loan amount is high, it is better to opt for a long-term loan. Defaulting on EMI payment will result in fines to be paid by the borrower. 
  • Not doing proper research in the market: With various websites now available for aspiring home loan applicants to check home loan, research should be done thoroughly in order to pick the best home loan option as per the requirements and financial capability of the borrower. 
  • Applying for a home loan with a poor credit score: Applying for a home loan with a poor credit score will harm the applicant’s chances of getting the approval for a home loan and if the application is rejected, chances are that the credit score will go down even further. Hence, it is advisable to maintain a healthy credit score. 
  • Not applying for insurance when availing a home loan: This is a common mistake made by applicants when applying for a home loan. In situations of financial distress, the applicant can use the insurance to protect himself or herself and the family as well. 
  • Studying the loan agreement thoroughly: It is essential for the applicant to study the terms and conditions of the home loan carefully before signing off on the agreement. If as the applicant or the borrower, you do not agree with any terms and conditions in the agreement, it is better to dispute it with the lender.       

Tuesday, 28 August 2018

Steps to choose the right lender for your home loan

A home loan is a pretty expensive affair and the repayment often goes on for more than 10 years - reaching 30 years in some cases too. Also, the minimum sum on a home loan can easily range in the lakh. So, it’s absolutely essential to approach the right lender so that you don’t have to pay too much interest or fees that you already need to. Here, we will talk about how to choose the right lender for your home loan.

  1. Choose an NBFC: If you have tried applying for a loan, you will have come across a number of Non-Banking Financial Companies (NBFCs) that have risen in number over the last decade or so. As the name suggests, these aren’t your typical banks and they lend money just the same irrespective of what loan you’re looking for. Before they arrived, banks had the monopoly on deciding the lending structure and the interest on a home loan. However, NBFCs have vastly changed the way the market works. For starters, they have given rise to healthy competition in the sector and have slowly taken a fair share of the market, threatening the power previously wielded by banks. If you feel a bank may or may not entertain your requests for a lower interest rate, you should consider applying for a NBFC as they often try to go toe-to-toe with some of the leading banks and provided loans at competitive rates.
  2. Compare between different offerings: When you decide to go for a home loan, you need to look at all the offerings that are available to you. For starters, you can use comparison as a tool and compare the loans provided by 3 or 4 different lenders. Go and have a sit down with each of these banks and ask for the best rate they can offer. Sometimes, a discussion such as this can get you an interest rate that is way below the market rate, so that’s worth your consideration. Also, talk about all the other aspects of the loan such as the processing fees, stamp duty charges, and basically other charges involved with a home loan. Basically, if you are getting a lesser rate home loan, it means that you are likely paying more than most on one or more of these charges.
  3. Figure out what you want: A home loan for a new property and a resale property is slightly different and should be approached slightly differently. Know what you are looking for exactly, what type of interest rate you are looking at (fixed or floating), how much down payment you have ready, and if the lender will ask for more in your case, and also think of how you service the EMIs on a month-on-month basis. Answering all these factors satisfactorily is highly important when availing a home loan because repaying it takes more than a decade and even more in some cases.
  4. Check the lender out: If you have done enough research and have already decided to take a loan from a particular lender, stop and think: Does the lender have a good track record? Are they going to make your life difficult by adding unexpected charges to your loan? You need to have a clear idea on where your lender stands in the market, if the lender has a reputation of strong arming their borrowers, there’s a likely chance they might do so with you. So, it’s always better to read reviews, talk to known acquaintances who have a loan from the same lender, and then decide on whether or not you should take a loan with them. 
  5. Know that lowest rate isn’t always the best: There’s something called clickbait - and if you’ve been on the internet long enough, you will have come across it several times. These make tall and practically unreachable claims with the content they offer and offer underdeliver at all times. Somer lenders too are guilty of using such a tactic. To begin with, they will put up a loan for the lowest interest rate - a few basis points lower than the prevailing market rate just to catch the prospective borrower’s attention. Once they have reeled you in, they will give you a list of all the charges you may have to pay to get the loan. So, make sure to not fall for such ploys and go with reputed lenders that have been in the business for long.
  6. Have a higher down payment ready: A down payment is often the first hurdle facing a home loan borrower. Typically, a lender will only give you 80% of the loan amount; 85% in some cases while the remaining 15% - 20% should be taken care of by the borrower. The higher the down payment you have, the better it is for you as you can get a loan at slightly improved rates and have chances of getting your loan approved at a much faster rate than anybody else. Having a higher amount ready tell the banks that you are confident and serious about what you are doing, which will help them make the decision faster.
 A home loan can be a massive burden for a borrower as they need to be repaid over a period of 10 - 25 years, while maintaining all your other financial responsibilities. Following the steps mentioned above will help you get the best home loan for your circumstances possible.

Monday, 27 August 2018

How To Go About Rectifying Errors In Pan Card?

When applying for a PAN card, if we are not careful while filling in the details asked for the form errors can creep in. These errors if not rectified can later result in some problems when the PAN card is to be used for certain purposes. When it comes to rectifying the errors in the PAN card, many applicants have doubts or are simply unaware of the process that needs to be followed. In this article, we take a look at the detailed process of how an individual can go about rectifying mistakes in the PAN card.

To rectify mistakes in the PAN card online, the steps mentioned below need to be followed:

  • First, the applicant needs to visit www.tin-nsdl.com.
  • Next, the applicant is required to select ‘PAN’ from under the ‘Services’ drop-down menu.
  • Thereafter, the applicant needs to click on ‘Apply’ under the tab ‘Change/Correction in PAN Data’.
  • On doing so, select the ‘Application Type’ as ‘Changes or Correction in existing PAN Data/ Reprint of PAN card (No changes in existing PAN Data).
  • Next, select ‘Category’
  • Following that, fill in the details like name, date of birth, e-mail ID, and mobile number.
  • Enter the Captcha code and click on ‘Submit’.
  • On doing so, the applicant will be provided with a 10-digit Token number, which will also be sent on the email address provided in the PAN application.
  • Next, the applicant is required to click on ‘Continue with PAN Application Form’ to fill the remaining PAN application form.
  • Check the option from among the options like ‘Submit digitally through e-KYC and e-Sign (Paperless)’, ‘Submit scanned images through e-Sign’, and ‘Forward application documents physically’ provided on the top of the page.
  • Next, enter the PAN card number whose details are to be corrected.
  • Fill in the details asked for in the form
  • After filling the form, the applicant needs to upload identity, age and residence proof.
  • Next, go through the details before saving the form to avoid errors.
  • The next step that the applicant need to follow is to make the payment.
Note: For Indian residents, the fees is Rs.110 while for those who have address outside India the fees is Rs.1,020

For offline correction of errors in PAN card, applicants are required to follow:

  • The applicant needs to download the form from the website.
  • Fill in the details asked for in the form.
  • The completed form along with the necessary documents are required to be submitted at the nearest PAN centre.
It needs to be mentioned here that the PAN correction form is also used for issuance of PAN card. Hence the applicant needs to make sure that the checks the correct option when applying for rectification of PAN details.
Always use the JS Compressor to shrink before you publish a website.

Monday, 6 August 2018

Go the online way for hassle-free, faster home loan approvals

The credit landscape in India is witnessing a revolution of a new kind. As innovative technologies are developing, the FinTech industry is tying together lenders and borrowers in a new way. Loans can be availed without having to wait for long hours at the bank. For example, if you are planning to apply for a home loan, there is no need to run around from bank to bank with a heavy file in hand. Thanks to the digital revolution, there are several platforms through which you can get your housing loan approved in a much more secure and faster manner. Read on to learn more about the advantages of taking the online route.

Better access
There are a lot of processes involved in applying for a home loan. Traditionally, you would have to approach the bank physically to seek out information on offers, interest rates, etc. Now, all the important information can be found online. Even sourcing the loan application form becomes much easier as it can be downloaded online.

Constant status updatesProspective borrowers are regularly updated about the status of their home loan application. From the time they login to their online profile to the time of the reimbursement of the loan, the customer is privileged enough to get constant updates.

Better reach
The digital revolution in finance is making it easier for all sections of the society to have access to credit. This means that people from remote and rural areas also have a high chance of getting access to information and apply for loans. Even if there are no banks in such areas, banking services can be availed online.

Turnaround time reduces
There is no need to wait in endless lines and run around trying to get your paperwork in order. You can compare home loan interest rates offered by various lenders online and apply for a home loan at the click of a button. Loan approvals also happen at a much quicker pace. This way, the end customer receives better services and the bank saves a lot of time.


Tailor-made products
One of the other main advantages of this type of loan application method is the fact that customers can customise their loans as per their personal financial requirements. This will help a lot of people get access to better credit facilities in time of need.


Paperless process
The entire process involved in applying for a home loan is paperless. All you have to do is to scan and upload documents. Also, have in place an e-KYC system. This is probably one of the main advantages of the online application process.

Things to know before applying for a home loan in India

  1. Understand eligibility: You will not get the loan approval unless you meet the eligibility criteria. This simply means that the lender will assess if you will be able to make EMI payments based on the salary that you take home. Ideally, you should not be spending more than 50% of your salary on an EMI. This is one of the most important factors that will be taken into account before a bank approves your loan. Remember that any additional perks or reimbursements that you get will not be considered to be a part of your salary. Another thing to keep in mind is the liability aspect. If you have other loans in hand, this also plays a role.
  2. Decide on tenure and EMI carefully: The longer the tenure for your home loan, the more interest you will end up paying. This means the total cost of your loan increases. This is why it is important to choose a tenure wisely. Do not go for a longer tenure just because you want to pay a lesser EMI. For example, if you are taking a loan of Rs.10 lakh for 20 years at the rate of 9.55% per annum, the EMI you will be paying will work out to be Rs.9,353.99 per month. However, the total interest paid will be Rs.12,444,956. On the other hand, if you take a loan for the same amount and the interest rate for a lesser tenure, let’s say 15 years, the EMI per month will be Rs.10, 472.44. Though the EMI is slightly higher, the interest paid on the whole loan will come down to Rs.8,85,038. 
  3. Choose the type of loan: There are two types of loans offered based on the type of interest rate that is charged. One is a fixed rate, where the interest rate remains fixed throughout the tenure of the loan. On the other hand, if you have a floating rate, the rate of interest fluctuates based on various market conditions. Fixed rates are higher than floating rates in most cases. So, if you go for a floating rate, the EMI you pay can increase or decrease based on the changes in market conditions. 
  4. Compare interest rates: The first and most important thing to do before you apply for a home loan is to look around for interest rates. Under no circumstance should you go for the first lender that approaches you. Do some thorough research and shop around for the best rate. However, do not make this your only parameter. It is also wise to read up on the bank that is granting you the loan or speak to some existing lenders.
  5. Read all the documents: A home loan approval application is a legal document that comes with certain important terms and conditions that you must be aware of. Be mindful of how your bank defines a ‘default in payment’. Scrutinise all the clauses that are offered and it also makes sense to consult a lawyer before signing any agreement in this regard.
Final words
If you are an old customer and have a long relationship with the bank, it is important to make  sure that you negotiate for a better interest rate. This especially holds true if you have all documents in place and a good credit score to add to it.





Monday, 23 July 2018

What is internal home loan balance transfer?

Home loan balance transfer is a process where the home loan of a particular borrower is transferred from one bank to another, usually for a lower rate of interest. The new bank will pay off the loan in entirety to the existing bank, and all future home loan payments will have to be paid towards the new bank after the home loan transfer.

In case of an internal home loan balance transfer, it is a process where the home loan is transferred to another individual within the same bank. Let’s say that you have an existing home loan with a particular bank and would like to sell your house. At the same time, the buyer of the property would like to avail a loan to make the purchase. Instead of having to close your existing loan, and the buyer having to apply for another loan, the buyer simply takes over the existing loan. This is known as internal home loan balance transfer.


Requirements to internally transfer your home loan

  • A letter of consent from the existing borrower to foreclose his loan in lieu of the property being sold 
  • A loan application form that is duly filled by the new owner of the property
  • The processing fee for the loan must be provided to the bank
  • No objection certificate from the developer
  • Any prepayment charges will have to be borne by the new owner


Monday, 2 July 2018

Steps To Manage Your Home Loan EMI

The home loan market has boomed in the last couple of years and it has allowed a lot more people to purchase a house. However, the flipside is that many home loan borrowers are having trouble with the EMIs. Usually, the monthly instalments that need to be paid are overwhelming to the borrower to the extent that their lifestyle has been compromised. And, since a home loan is a long-term investment, one must be wary about being unable to manage the EMI associated with it.

Mentioned below are some tips to help you manage your home loan EMI.
  • Understand your monthly financial outflow – Prior to obtaining a home loan, understand the monthly outflow of cash that you need to set aside to pay off your EMI. There are several online home loan EMI calculators to help you determine this. Make use of these calculators to gauge if you are capable of repaying the loan. If the EMI exceeds 40 – 50% of your monthly income, it is a good idea to reconsider availing the loan. If you have other debts, reduce these debts from your monthly income and calculate 40 – 50% of this amount. If your home loan exceeds this amount, it is advisable to reconsider your home loan.
  • Pay higher EMIs – Choosing a home loan with a higher EMI means that you will save on the total interest payable. This also helps you reduce the tenure on your home loan. However, one must keep the previous point in mind as well when opting for a loan with a higher EMI. One must not simply opt for a higher EMI if the current lifestyle is being compromised.
  • Increase your EMI payments – Home loans are long-term investments, and during the tenure, an applicant’s income is bound to increase. Increasing your EMI as and when your income increases will help you save on the total interest payable and will reduce the tenure of the loan as well. This also applies to instances when a borrower receives a bonus or a lump sum amount. It makes sense to pay a part of it or the entire amount towards the home loan. This is because it helps you save on a substantial amount of the total interest payable.
  • Transfer your home loan – If you have been paying off the home loan diligently for a while, you can request your bank to reduce the rate of interest. If the bank doesn’t oblige, you can choose to transfer your home loan to another bank. Most banks allow home loan balance transfers and this can help reduce the rate of interest and also modify the EMI. in this process.The new bank will pay off the home loan to your existing bank and all future EMIs will have to be paid to the new bank. However, it must be understood that after a while of paying back the home loan, you would primarily be paying back the principal and only a part of the interest. This means that you have paid off most of the interest on your home loan. It is, therefore, illogical to transfer your home loan after a certain point of the tenure of the home loan.
  • Make prepayments – As mentioned earlier, make the effort to utilise any additional income you may receive to make partial prepayments toward the home loan. Although you may view it as losing out on a lump sum amount at once, you are actually saving on a lot of money by making prepayments. Usually, banks do not charge you on prepayments, and preclosure. Therefore, in order to save money, it is logical to make prepayments.
  • Reassess your investments – If the total return on your investments is lesser than the total interest payable on your home loan, it is sensible to withdraw these investments to pay off the home loan. This is so because the marginal interest you avail from the investments will be overshadowed by the total interest you save by prepaying the home loan.
A home loan is a long-term commitment, therefore, it is important to make sure that you are financially capable of repaying this loan even before applying for it. Use online platforms that will help you assess the financial outflow you would have to incur to pay back the loan, and proceed cautiously. In case you are burdened by an existing home loan, follow the steps mentioned in this article and maintain financial discipline for a while. This will help you ease the EMI burden and will also help you pay off the home loan faster. Also consider refinancing your home loan to reduce the EMI you have to pay. However, this should be considered only after negotiating with your existing bank first.

Wednesday, 16 May 2018

Guide to LAP or Loan Against Property

When you avail a loan from a bank or an NBFC against your property that you keep as collateral, it is called loan against property. This is a secured form of loan as a collateral is involved. The repayment guarantee is provided in the form of collateral by this borrower.

Often, individuals ask how much loan can they avail if they go for loan against property. Thing is, you must first know the value of the property that you are going to offer as collateral. The loan that you can avail depends on the value of your property.

Generally, banks and other lenders offer up to 65% of the property value as loan against property. You must also understand that every loan comes with a rate of interest. Different lenders offer different rates of interest with their loans. You will be charged an interest rate ranging between 12% and 16% with the loan against property.

The tenure of the loan will be 15 years. However, if you wish to get a clear idea about the tenure associated with your loan and the rate that you have to pay, you should talk to the bank or NBFC from where you are getting the loan. The tenure and rates may vary from one lender to another.

Uses Of Loan Against Property:

Loan against property or LAP is a great way to avail funds when you need to arrange money for any high expenditure. Find below a list of things that can be carried out using loan against property:
  • Wedding
  • Purchasing land, a new house, or a commercial property.
  • Setting up your business.
  • Medical emergencies.
  • Studying abroad.
  • Honeymoon, family vacation, solo travel.
Please remember that these are not the only things that you can do using the loan against property. However it is very important for you to understand that the money should be put to good use. In case you end of spending the money on something that is not worth it and then fail to repay your debt, you might end up losing your house to the lender.

Types Of Properties Against Which You Can Avail Loan Against Property:

The types of properties against which you can avail loan against property are mentioned below:
  1. Self-owned but rented commercial property.
  2. Self-owned commercial property.
  3. Self-owned plot of land.
  4. Self-owned but rented residential property.
  5. Self-owned and self-occupied residential property.
  6. Self-owned residential property.

Factors That Determine Eligibility For Loan Against Property:

Your ability to repay the loan, financial status, and the property value are some of the common things that are considered for the determination of your eligibility towards the loan against property that you apply for. Your current debts and all your savings are also taken into consideration for determining your loan against property eligibility.

Perks Of Applying For A Loan Against Property:

  • Loan against property offers a long tenure and make EMI payments easy for you.
  • When compared to a personal loan, you can avail a bigger amount with loan against property.
  • Since it is a secured loan, the rates are much lower than any other unsecured loan.

Bottom Line:

It is extremely important for you to know your financial status before you apply for a loan against property. Compare various loans and pick the one that suits your needs the best.

Wednesday, 25 April 2018

Is A Plot Better Than A Flat?

When it comes to making the biggest financial decision of your life, which is buying a home, there is always one thing that most of us are confused about. The question here is whether to invest in a piece of land or to purchase a flat. This is the most common dilemma. Let us delve more into this to understand each of the aspects involved in these two investment decisions.

Let us first consider the price aspect. It generally costs lesser to buy a piece of land in the outskirts of the city or in a developing area. However, it is close to impossible to buy a plot in an upscale area. Middle and lower income groups tend to move towards flats. This can be comparatively more available and there are different budgets within which you will be able to purchase an apartment. On the other hand, even if you buy a piece of land, you will have to construct a home and the cost of construction is very high in today’s times. When you compare this to apartment, you have already been given a flat that is constructed. Price of an apartment depends on various factors and most apartments can prove to be more costly than land. However, the advantage here, again, is that an apartment in most cases is ready-to-move-in.

One of the other most important aspects to be considered is the appreciation factor. A plot of land will not only be your own completely but will also appreciate more when compared to a flat. Flats that are older will slowly start losing their value. This is because the building will slowly become older and disintegrate. This is definitely not the case when it comes to a piece of land.

When it comes to earning capacity, you can earn rent income from a flat. This not the case with a plot. You will not be able to do much with a plot unless you actually construct a house. You will have full ownership and control of the piece of land. This will not be the case in case of a flat because you only own a small portion of the total property. The other thing is that you can easily get a loan against an apartment but this will not be possible on a plot of land. Though it is not impossible, it is quite hard.

On the whole, it only depends on what your personal preferences are. Some people find it more convenient to go for a flat as it comes with amenities , while others who want to construct their own home want to go for a plot. Overall, it all depends on what you want.

Thursday, 19 April 2018

The Property Inspection Checklist

Purchasing a property in India take a lot of time and effort. Due to this, there are instances where home buyers settle a house, which may cause them regret in future. It is of utmost importance, therefore, that you inspect the property thoroughly before purchasing it. Mentioned below is a checklist to follow before you purchase property.

  • Foundation – A visual inspection of the pillars, walls, etc. can tell you a lot about a house. You do not need to be an expert to determine if the foundation of the house is solid or not.
  • Exterior – As it is with visually evaluating the foundation, it is also equally important to inspect the exterior. This will also give you an idea of the quality of the exterior and also if the building requires any repair or reconstruction.
  • Low lying area and poor drainage – In the event that the property is located in low-lying area, there are chances of water logging during the rainy season. It is best to avoid making investments in properties in low-lying areas. Water logging is not very sanitary as it can cause diseases an seepage in your house.
  • Sunlight and ventilation – Every house must have adequate sunlight and ventilation for in order to lead a healthy lifestyle. The lack of these two essential elements, there are high chances of germs and diseases accumulating in the house. This is arguably one of the most important factors to look into before making an investment in a property.
  • Size of the rooms – It’s a good idea to measure the sizes of the rooms just to understand if your furniture would fit easily into the room. It could be quite a setback if you cannot accommodate your furniture and end up spending additional money to purchase new furniture as well. This can also tell you the actual carpet area of the house.
  • Water seepage and leaks – leaks and water seepages can cause huge burdens if not corrected in time. A water seepage can also spread throughout the house, making it an uncomfortable environment to live in. Apart from just weakening the walls and ceilings, water seepage is a very good habitat for termites and other such germs. A quick scan of the house can help you ascertain if there are water leakages or seepage. A quick point to keep in mind is that the top most floor of a house or apartment and the ground floor are more susceptible to these water damages. Although minor seepages can be corrected, houses with major water issues should be avoided at all costs.
  • Cracks – Cracks and damages on walls can be an indication of poor construction. Check the house for any cracks on the walls or ceilings. This is a quick and easy way to determine the quality of the property. Generally, the more cracks you notice in a house, the more likely that it was poorly constructed.
  • Doors and windows – Although damages on doors and windows may be easily corrected, it must be brought to the owner’s attention before purchase. Make sure the owner rectifies the issue before making a purchase.
  • Electrical issues – As it is with doors and windows, electrical issues are usually easy to rectify. Check all electrical outlets, loose boards, etc., and bring it to the owner’s attention before making a purchase. Request for these issues to be rectified before investing in the property.
  • Plumbing issues – A good plumbing system will ensure that there is no water leakage or seepage. Understanding if the plumbing system in the property is up to the mark will help you saves a lot of money and hardship in future. Unfortunately, not everyone can ascertain this, and therefore, you would need to hire a professional to do this for you. To review the plumbing system at a basic level, you can check for any leaks in the taps or valves. If you happen to notice any leaks, the property may have bad plumbing.
  • Termites and bugs – Scanning the house for termites and bugs is a very good idea. This can definitely save you from suffering in future. If you happen to find bugs or termites, the best thing to do is to refrain from investing in the property. The second option you have is to request the owner to terminate these pests before you can make a purchase.
  • Odour – If you sense any odour from the house, this can be an indication of water seepage or the presence of germs. This is a tricky situation to assess as bad odour can be caused by other factors that can be dealt with easily. Therefore, it is important to not make impetuous decisions with the odour of the house.
  • Basement – Often, homebuyers tend to scan the entire house but oversee the basement. Basements can be a good indicator of the house’s overall situation. Check for cracks, ventilation, etc. to assess the quality of the basement. This is usually an indicator of the entire house’s health.
  • Ventilating system – In case the house possesses a heating or cooling system, it is important to evaluate the condition of the duct, the age of the system, the maintenance, etc. In case the system doesn’t work, not only is it going to be a costly affair to rectify this, but you are also not going to be able to live in the ideal conditions.
  • Security situation – Ensure the gated community has adequate CCTV cameras, security guards etc., if you are looking to purchase a property here. In case it is not a gated community, enquire with the neighbours about how secure the neighbourhood is. You may also consider hooking up some CCTV cameras yourself too.
  • Maintenance – One of the major issues that home buyers fail to look up is the maintenance payable in apartments or gated communities. It is only after they have moved in that they realise that the maintenance charges are expensive. By now, it is too late to back out of the deal. It is important to understand the maintenance fee before making a purchase. If the fee is too high for you, do not invest in the house. However, make sure you take into consideration the proximity of hospitals, airports, schools, offices, markets, etc., before making this decision. There are cases where the convenience if these amenities outweigh the maintenance fee payable on the property.
Follow the checklist mentioned in this article before purchasing a property. It can be a strenuous task, but can help you save on a lot of time and money in future. After all, properties are long-term investments and you will be living here for a while. Therefore, it is important to look at the investment in a long-term standpoint.

Check :  Commercial property loan

Tuesday, 10 April 2018

Best Ways To Make Money Online With Real Estate

Wouldn't it be nice to be able to make some extra money just with a click of the mouse? All from your home computer? Well, with virtual real estate, it's easier than ever to earn money from the comfort of your own home. You can literally click the mouse and buy or sell a house! Many real estate professionals or online marketers who have knowledge of real estate often wonder if they can use their knowledge to make money online.

Well generally, you would find many articles on the internet that will tell you how you can promote your Real Estate brand or business online through various mediums. But none would talk about making money through online means. Let’s look at the best ways to earn money online:

  • Affiliate marketing: Affiliate marketing is a type of marketing where you talk about or a write a review about a third-party product on your website and once the product is purchased by any one referred by you, you get paid by the product owner. Depending on the company or website, the commission will vary. Signing up for affiliate marketing is easy because most online companies will have a link off their site where you can sign up to be part of their program.
  • Online surveys: There are several online companies who are interested in what you have to say. In fact, they will pay you to take simple surveys. All you need to do is register with an online survey company. Once you register, you will need to fill out your profile because most companies are looking for certain profile types to fill out surveys depending on their product or service, or what they're looking for at the time.
  • Creating a website: If you have a hobby or passion, why not create a website? With this, there are countless ways to earn money. Once you create the content to keep people interested and coming to your site, you can use your website to refer people to other websites to buy products where you will earn a commission, use Google AdSense, or even sell your own product.
  • Content marketing and content writing: The other way of making money online is by writing for a website or a real estate blog. You enrol yourself on any of the freelancer websites like ContentMart, Constant-Content, UPWork, etc. Write at least 500-1,000 words on topics related to real estate. There are enough jobs posted on these portals for you to have your hands full. Additionally, if you know SEM, social media, and SEO, then you can offer digital marketing services on these portals.
  • YouTube: In the last five years, YouTube has emerged as a great source of promotion for you or your brand. You can search about top YouTubers and their earnings, you will be surprised to learn about the kind of money they make just making videos. Even if you are working as a real estate agent, you can share information about your locality, your services and educate your potential customers.
  • Paid events and products: You can develop your own products like a software or a course and sell directly on your website or through affiliates. You can also organize paid online webinars or events that cater to your industry audience. You can even raise funds online and invest in real estate. This allows investors to invest in any type of real estate online, helping them diversify their investments with a function that is very similar to investing in the stock market.
  • Be an Airbnb host: If you want to make some extra money from the virtual real estate industry, then you can try Airbnb. Here, the website is the investor, which allows you to list short-term vacation rentals online for interested guests to see and rent out. In terms of earnings, you dictate how much you earn, to some extent. You set the price of your Airbnb property, which will depend on various factors such as location, property, market, season, and amenities you include.
Bottom line:
There exist many ways to make money online as a real estate investor. Some are purely real estate related, such as Airbnb, while others are more extreme virtual versions of the real estate market. Whichever your method of investment is, make sure to visit our website at BankBazaar, where you can find more blogs and guides related to all aspects of real estate investing, in addition to some powerful ways to double your money on investment that can optimize your real-life real estate investment strategies and help you generate significant profits.

Hence, it is absolutely necessary for you to know your facts about the real estate industry. This will help you in the future to easily get jobs and paid well. Pick up good practises like SEO to manage your website and sell your products for free.

Thursday, 5 April 2018

How To Manage Home Loan EMIs

Home loans have become easier to obtain in the last few years, and this has also caused a lot of financial burden on borrowers. The expanding home loan market has increased defaulters as well. Being unable to pay off the EMIs efficiently has been a problem that needs to be addressed. Mentioned below are tips that can be followed to manage your home loan EMI better.

  • Reduce the EMIs – The easiest way to reduce the burden of EMI is to negotiate with the bank to reduce the EMI you need to pay towards the loan. I many cases the bank will oblige due to the immense competition in the home loan market.
  • Refinance your home loan – In case the bank doesn’t reduce the EMI, consider refinancing your home loan. Refinancing is a procedure that involves transferring your home loan balance from one bank to another. This may help you reduce the EMI on your home loan.
  • Try to postpone your EMI – If you feel that your financial issue is only temporary, approach the bank to postpone the EMI payment. If you have been making the payments promptly, the bank is likely to oblige to your request.
  • Make use of any additional income – Use any additional income that may receive, like bonuses, etc., to pay off your home loan. This will help reduce your EMI burden and also help you close your housing loan faster.
  • Make use of EMI calculators – Before you avail a housing loan, understand the financial outflow you would need to incur on a monthly basis to pay it off. If you think that a loan would be too expensive for you, it would be a wise decision to not take it up. Make use of EMI calculators to help understand the monthly commitment you need to incur. Remember, the EMIs payable towards a home loan should not affect your lifestyle.
  • Reassess your investments – If your ROI (Return on Investments) is lesser than the interest that you pay on your housing loan, it is advisable to withdraw these investments and prepay your home loan.
A home loan is a long term commitment, therefore, it is important to make sure that you are financially capably of repaying this loan before even applying for it. Use online platforms that will help you assess the financial outflow you would have to incur to pay back the loan, and proceed cautiously. In case you are burdened by an existing home loan, follow the steps mentioned in this article and maintain financial discipline for a while. This will help you ease the EMI burden and also will help you pay off the home loan faster. Also consider refinancing your home loan to reduce the EMI you have to pay. However, this should be considered only after negotiating with your existing bank first.

Thursday, 29 March 2018

Knowing More About Home Loan Tax Benefits

Purchasing a house for yourself and your loved ones is one of the biggest investments that you will probably make in your entire lifetime. It is a very big decision to buy a house because not only you spend a lot of money, but also it becomes an asset to you. Everyone wants to own a house and in today’s world, buying a house is more of a necessity than a luxury.


Buying a home requires lots of funding. You may go ahead and shell out your savings on buying your dream home. However, if you do not wish to buy the house using your savings or don’t have enough saved up, you may choose to go for a home loan. A home loan offers you the lump sum money that you need to buy your house. You must understand that the loan will not cover the entire value of the property. Around 80-85% of the property value will be taken care of by the loan and the remaining 15-20% must be paid by you as down payment.

If you choose to opt for a home loan, you will have to ensure that you make the monthly payments on time towards the debt. Ensure that you have enough cash flow every month so that you can manage your finances well.

In order to avail a loan from a bank or an NBFC, you must meet the eligibility criteria set by them. You must have a steady source of income, a good credit score, etc. If you meet the criteria and all your documents are in place, you can easily avail the home loan.

A home loan not only helps you buy a house, but it also comes with several other perks.  One such perk is called Home Loan Income Tax Benefit. Let us talk about the tax benefits that can be availed under the prevailing Income Tax laws.


Tax Benefits On Housing Loans:

Tax Benefits for home loans can be availed under Section 80C, Section 80EE and Section 24 of the Income Tax Laws.

Tax Benefits For Home Loan Under Section 80c:

Under Section 80C of the Income Tax Act, the borrower of the housing loan is allowed to claim tax deduction on the principal amount. Rs.1.5 lakh is the maximum amount that can be claimed under this Section as tax deduction. You must understand that this deduction is the sum total of all the deductions under Section 80C and includes sums invested in fixed deposits, PPFs, Senior Citizens Savings Scheme, National Savings Certificate, etc.

Tax Benefits For Home Loan Under Section 24:

Section 24 of the IT Act allows the borrower of the home loan to claim tax deduction on the interest that is paid towards the housing loan. According to the clauses mentioned under this Section, income from the borrower’s property is reduced by the figure of the interest paid on the housing loan. However, there is a condition for claiming this tax deduction. The home loan must have been taken for the purpose of purchasing a property, construction of the house, repair of the house, reconstruction or remodelling, etc.

Tax Benefits For Home Loan Under Section 80ee:

This Section under the Income Tax Act was reintroduced in the 2016 Union Budget. It has a provision of claiming an additional amount of Rs.50,000 as tax benefit when you take a home loan. This claim can be made on the interest that is paid towards the loan amount. This additional claim is over and above the claim of Rs.1.5 lakh and Rs.2 lakh under Section 80C and Section 24 on the Income Tax Act, respectively.

When Is A Claim Under Section 80ee Valid?

 The claim under Section 80EE is allowed if the cost of the property purchased by you is less than Rs.50 lakh and the total value of the property does not exceed an amount of Rs.35 lakh. The deduction benefit can be availed till the time the home loan’s repayment is done.

How To Claim Home Loan Tax Benefits?

In order to claim tax benefits on home loans, you will need to submit the lender’s statement that states the payable amount towards the interest and principal. If the claim is valid, the borrower only has to pay tax on the remaining amount that does not fall under the tax deduction bracket.

Bottom Line:
Choosing a home loan for buying your home can prove to be a great option as it helps you buy the house easily and allows you to save more by claiming tax benefits. Ensure that you do thorough research before investing in a property.
 

 
 


 


Wednesday, 28 March 2018

What ‘NOT’ To Do When You Apply For A Home Loan

While there are a list of guidelines and rules that you might have followed before and during your home loan application process, it is also important to keep in mind the list of ‘don'ts’. It matters that you be very careful during this crucial period of your life when you are very close to making your home dream come true. It is necessary to keep these pointers in mind because you do not want to loose your chance of getting a home loan. Not only will being careless reduce your chances but will have an impact on the interest rates offered and other perks that you would have otherwise been eligible for. For example, it is better to avoid getting into more debt or abusing your credit card during this time period. Read on further to read more about the list of things that you should avoid during, before and after the home loan application process.

  • Do not accumulate debt: Remember, when you are preparing to file your home loan application, it is wise not to accumulate any type of new debt in the form of personal loans, car loans or other types of outstanding credit. This will definitely have a huge impact on your eligibility criteria. Not just this, this will also have an impact on your credit score and put you in the category of a ‘high risk borrower’. So, keep in mind that before, during and even after the home loan application process, do not take any other type of debt.
  • Do not become a co-borrower or a offer guarantee: Though you may want to help someone in need of debt, remember, this is not the best time to become a co-borrower or offer a guarantee on another loan that your friend or relative might be applying for. It may be hard to say a no, but explain to them politely why you cannot help them at this point in your life. Do not be under the misconception that you can co-sign once the home loan application is approved. You need to be very careful till you finally settle the loan.
  • Do not lose track of your credit score: Even, before you apply for a home loan, you have to make sure you build a good credit score, based on which the lender will be confident enough to give you a home loan. Start building your credit score well in advance and do not wait till the last minute. Also make sure that you do not do anything that will have your credit score drastically even after you have applied for a home loan. Make sure you are paying all bills on time and if it is not possible to keep all deadlines in mid, set up automatic payments or even payment reminders.
  • Do not close a credit card account: Think that closing your credit card account is the best idea? No. It may probably be the worst idea because your credit card is one of the main factors that are used to access your eligibility criteria. And, if you suddenly close a credit card account, it may lead to unnecessary suspicion and may also have a negative impact on your overall credit score even if you have made all payments on time and do not have an undue credit on the card that you may be holding.
  • Do not switch jobs or make other career moves: This is definitely not a good time to change a job. Ideally, you should have a stable and secure job to be able to take a home loan and also pay it back. Also, if you are planning to go for higher education, this may not be a great time. A home loan is a long-term commitment and thus you have to be fully prepared for this move. Do not change a job suddenly before you apply for a housing loan. Though it is okay to switch jobs, make sure you do not look like you are a job hopper to the lender.
  • Do not make any expensive purchases: If you make a very expensive purchase just a few weeks before you apply for a home loan, it will send across a very wrong message to the lender. Also, it is important to save some money and have some liquid cash in hand during this process. Another thing to remember is that if you have made this purchase on your credit card, it is even more worrisome as it will hit your credit score in a big way and potentially cause irreversible damage.
  • Do not go overboard with your expenses after taking a home loan: It's an occasion to celebrate once your home loan application has been approved but do not go overboard. Remember that you are being constantly watched and it not the right time for you to splurge on your expenses. Focus more on paying back the loan and less on other aspects.
  • Keep your personal information safe: One of the other most important factors to keep in mind is to keep your personal information safe and secure. Do not reveal any personal financial information to anyone else at any point of time and be very cautious.
  • Do not go overboard: Before you apply for a home loan check and see if you will be able to pay a monthly installment and can actually afford it. Do not choose an EMI that you will not be able to commit to pay just because you want get a home loan. Do not forget that even banks will not approve your home loan application if you make unrealistic commitments. 
Some Takeaways
Be cautious at very step when you are preparing to apply for a home loan. It is nearly impossible to buy a house without applying for a loan in today’s world, so be prepared to take the risk and at the same time also be able to commit to the same in a responsible manner.

Sunday, 18 March 2018

Top Banks Home Loan Details

Buying a house in India is a matter of great joy and pride. When you buy a house you can live there with your loved ones and give them the luxury and peace of mind that they deserve. When you invest in buying a house, it is probably the biggest investment of your life. No ones stopping you if you plan to buy your new house using your savings. However, going for a home loan will not affect your savings to a great extent.

A home loan offers you the upfront money you require to buy a house. However, you must understand that a home loan will only cover 85% of the property value. The remaining 15% has to come from your savings. Before applying for a home loan, it is imperative that you read the details and understand the complete process of applying.

There are several home loans offered by different banks in India. The NBFCs also offer housing loans that are associated with attractive rates of interest.

Let us know about the details of home loans offered by some of the top banks in India.

DBS Home Loan Details

  • Pre-closure Chargest: Varies with bank
  • Partial pre-payment Charges: Varies with bank
  • Loan tenure: 1 Year to 30 Years
  • Processing fees: Varies with bank
  • Interest Rate (Monthly reducing balance): 8.35% to 18%

SBI Home Loan Details

  • Pre-closure Chargest: Nil
  • Loan tenure: 30 Years
  • Processing fees: 0.35% of Loan Amount, min of Rs.2,000 to max of Rs.10,000 (plus applicable tax)
  • Interest Rate (Monthly reducing balance): For women - 8.30% to 8.6%, For General Customers - 8.35% to 8.65% 

ICICI Home Loan Details

  • Pre-closure Chargest: Nil
  • Partial pre-payment Charges: Nil
  • Loan tenure: 3 Years to 30 Years
  • Processing fees: 0.50% of Loan Amount (Maximum of Rs.11,800)
  • Interest Rate (Monthly reducing balance): For women - 8.45% to 8.80%, For General Customers - 8.50% to 8.85%
  • Guarantor requirement: Not require

HDFC Home Loan Details

  • Pre-closure Chargest: Nil
  • Partial pre-payment Charges: Nil
  • Loan tenure: 1 Year to 30 Years
  • Processing fees: 0.50% of Loan Amount (Maximum of Rs.11,800)
  • Interest Rate (Monthly reducing balance): 8.35% to 8.85%
  • Guarantor requirement: Not required 

Axis Bank Home Loan Details

  • Pre-closure Chargest: Nil
  • Partial pre-payment Charges: Nil
  • Loan tenure: 1 Year to 30 Years, Super Saver Scheme - 1 year to 20 years
  • Processing fees: 0.50% of Loan Amount (Minimum of Rs.10,000)
  • Interest Rate (Monthly reducing balance): 8.35% to 11.75%, Super Saver Scheme – 9.25%
  • Guarantor requirement: Not required 

PNB Housing Home Loan Details

  • Pre-closure Chargest: Nil
  • Partial pre-payment Charges: Nil
  • Loan tenure: 1 Year to 30 Years
  • Processing fees: 0.50% of Loan Amount (Minimum of Rs.5,900)
  • Interest Rate (Monthly reducing balance): 8.35% to 10.25%
  • Guarantor requirement: Not required 

Bank of Baroda Home Loan Details

  • Pre-closure Chargest: Nil
  • Loan tenure: 30 Years
  • Processing fees: 0.50% to 0.25% of Loan Amount (Min of Rs.7500 to Max of Rs.20,000)
  • Interest Rate (Monthly reducing balance): 8.30% to 9.35% 

IDBI Home Loan Details

  • Pre-closure Chargest: Nil
  • Loan tenure: 30 Years
  • Interest Rate (Monthly reducing balance): 8.35% to 8.65%

Saturday, 17 March 2018

Banks May Soon Increase Lending Rates

Interest rates on home loans and car loans may go up in the near future in order to safeguard their margins. This change can be expected to occur as soon as the coming month since the cost the bank incurs on borrowing has risen and they are constantly looking for deposits at a higher rate.

The Reserve Bank of India (RBI) had also demanded that banks to link base rates to MCLR from the 1st of April. This too has an impact on the rise in lending rates, experts believe.

Banking giant, HDFC bank had also increased their MCLR by 10 basis points recently, indicating that several other banks may follow this move. Other banks like IndusInd, Kotak Mahindra, Yes bank, and Axis bank have also spiked their MCLR by 5 – 10 basis points.

The hike in lending rates could have been speculated when banks began to increase the bulk deposit rates earlier. With the State Bank of India (SBI) being the first to do so, all other lenders followed their path not long after this move. The interest rates on one-year deposits that amounted to over Rs.1 crore rose to 6.25% by 200 basis points in a few months.

However, the country’s largest lender hasn’t yet increased their MCLR yet and now offers home loans on several different types of properties. From under-construction, fully built, pre-owned, renovation, repair, etc., the bank has all areas covered in terms of home loans. Furthermore, they also offer home loans as overdraft for customers to adequately use the funds provided by the bank.

Eligibility criteria for a SBI home loan

In order to avail a home loan from SBI, one must meet the following eligibility criteria:
  • The individual must be an Indian resident 
  • The applicant must be at least 18 years of age
  • The applicant cannot be over the age of 70
  • The maximum tenure of a SBI home loan is 30 years

Documents required

Account statement

  • Bank account statement for the last 6 months 

Property documents

  • No objection certificate (NOC) from society or builder 
  • Maintenance bill, utility bill, electricity bill, property tax receipt
  • Sale deed
  • Certificate of occupancy

Identification documents

  • ID card from employer 
  • Duly filled loan application form
  • Passport size photographs
  • ID proof : PAN card, driver’s license, passport, Aadhaar card, voter ID (Any one)

For non-salaried individuals

  • Qualification certificate in case of a self-employed borrower 
  • Tax deducted at source certificate
  • Business certificate, if applicable
  • Balance sheet and profit and loss statement
  • Income tax returns for the last 3 years
  • Business address proof

For salaried individuals

  • Last 2 year’s copy of form 16
  • Income tax returns copy for the last 2 years 
  • Pay slip for the last 3 months
  • Address proof : Driver’s license, passport, Aadhaar card, electricity bill, telephone bill, gas bill, water bill (Any one)

Tuesday, 13 March 2018

Documents Required For Loan Against Property


A loan against property is a loan that is disbursed to a borrower with his property used as collateral by the lender. These types of loans are easier to obtain as these are secured loans, making it safer for a lender to approve them. The loan amount for these types of loans usually corresponds with the value of the property and lenders usually do not put that much of a weight-age on an applicant’s income.
The documents required in order to avail a loan against property are mentioned below:
For salaried individuals
  • Photo ID proof (Applicant must produce any one of the following)
  1.  Applicant’s driving license
  2.  Applicant’s PAN card
  3.  Applicant’s passport
  4.  Applicant’s voter ID
  • Address proof of residence (Applicant must produce any one of the following) 
  1. Applicant’s ration card
  2. Applicant’ electricity bill
  3. Applicant’s phone bill
  4. Any utility bill of applicant
  5. Applicant’s passport
  • Ownership of residence proof (Applicant must produce any one of the following) 
  1. Applicant’s maintenance bill
  2. Applicant’s electricity bill
  3. Applicant’s property documents
  • Income proof 
  1. Pay slip from current employer for the last three months
  2. Form 16
  • Continuity of job proof (Applicant must produce any one of the following) 
  1. Certificate of employment from current employer
  2. Job appointment letter from current employer
  3. All relevant experience certificates
  • Salary proof 
  1. One year’s bank statement of the account in which your salary is credited
  • Property documentation 
  1. Sale deed of the property
  2. Maintenance bill of the latest month
  3. Share certificate
  4. Sanction letter that is provided by the existing banker
  • Processing cheque that is required to process the loan 
  • Any proof of investment, if any (Assets, fixed deposits, mutual funds, etc.)
  • Passport size photograph
For self-employed individuals 
  • Photo ID proof (Applicant must produce any one of the following)
  1. Applicant’s driving license
  2. Applicant’s PAN card
  3. Applicant’s passport
  4. Applicant’s voter ID 
  • Address proof of residence (Applicant must produce any one of the following) 
  1. Applicant’s ration card
  2. Applicant’ electricity bill
  3. Applicant’s phone bill
  4. Any utility bill of applicant
  5. Applicant’s passport
  •  Ownership of residence proof (Applicant must produce any one of the following)
  1. Applicant’s maintenance bill
  2. Applicant’s electricity bill
  3. Applicant’s property documents
  • Proof of business 
  1. Saral copy of the last 3 years
  2. Copy of tax registration, if any
  3. License of company registration
  4. Shop establishment act
  • Income proof
  1. Income tax returns for the last three years
  2. Copy of audit report, profit and loss statement, balance sheet, etc.
  • Copy of bank statement for the last year of both current and savings account
  • Property documentation
  1. Sale deed of the property
  2. Maintenance bill of the latest month
  3. Share certificate
  4. Sanction letter that is provided by the existing banker
  • Processing cheque that is required to process the loan
  • Any proof of investment, if any (Assets, fixed deposits, mutual funds, etc.)
  • Passport size photograph
 



Monday, 12 March 2018

Things to Remember When You Buy a Second Home

It is a great feeling to own a home when you already have one. This means you have earned and saved substantially to afford two houses, which is indeed a matter of great pride and joy. However, when you are buying a second home, your reason or purpose of making that huge investment should be clear to you. You must pick a location for buying the property as per your need of the property.

If you already have a house and are buying another property as your weekend home, it suggests that the avenue will be treated as a recreational place. So, when you have a house in the city, you will most likely want to buy your weekend home away from the hustle and bustle of your everyday life. This is the place where you would go to take a break and pursue your habits like playing, reading, or doing something for which you do not find time in your daily schedule.

There are 2 reasons for which you can invest in buying a second house:
  • To rent out the property or use it for your own requirements.
  • As an add-on investment for the long run.

Why do you need a second house?

Many people think that you must only buy a second property if you can make use of it properly by staying in there for a substantial amount of time. Some think that a second house can be treated as a vacation spot where you can stay with your family and enjoy in peace, away from the noisy city-life. However, another group of buyers think a second house can be purchased for generation of income.

Return of Investment prospects of the second house:

The Return of Investment prospects of a second house depends on certain factors mentioned here:
  • The location where the second house is situated.
  • Rental demand in that particular area.
  • Overhead costs like car parking charges, maintenance costs, etc.
  • Physical and social infrastructure of the area.
  • Frequency of public transport availability.

How to pick a second home that meets your requirements:

When you plan to purchase a second house, one of the key factors that must be remembered is the location of the property. The second home should not be extremely far from your primary home as it might be difficult for you to commute from one house to another. Another thing that plays a major role when you buy the second property is the cost of the second house.

As a buyer, you must understand the supply and demand in the neighbourhood where you intend to buy the property. If rental income is your primary objective after buying the second house, you should purchase the property in an area where a lot of people choose to stay on rent like close to technology parks, office areas, schools, etc.

Bottom line:

It is a great feeling to buy a house once, but to buy another one is a matter of sheer pride and honour. Do a good amount of research before you choose your second home and buy the property that meets your needs and requirements of investing in another house.

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