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Home Loan Bay, Kochi (2026)

24/02/2021

Things to consider before going for a Home Loan

#1. Interest Rate

Interest rate is the most important factor for a home loan. That is because even a slight difference of 0.5% in the interest rate on lakhs of rupees can make a huge difference.

#2. Processing Fees

Your bank will charge a fixed amount or a percentage of the loan value as processing fees. The fee is just for processing your application and does not guarantee loan approval or disbursal.

Most of the time, home loan processing fees are non-refundable.

#3. Legal Fees

Some banks charge legal fees to verify the property documents.

#4. Pre-closure Charges

Some banks put a clause that you cannot pre-close your loan or that you have to pay an additional amount in the form of charges to pre-close the loan.

#5. Loan-To-Value (LTV) Ratio

LTV indicates the proportion of the property value that the bank is ready to finance. Your bank may finance anywhere between 75% to 90% of the property value.

#6. Part-Payment Rules

Many banks and housing finance companies (HFCs) put rigid rules for part payment so that they do not lose interest income. Banks may also put a clause limiting the amount or the percentage of the loan that can be prepaid.

#7. Insurance Cover

You can also buy an insurance cover for your home loan. Note, it’s optional, not mandatory to buy insurance.

Be careful if the bank insists you on buying insurance.

Sujesh Soman
+91 8129977888

23/02/2021

# Everything you wanted to know about Loan Against Property

1. Loan Against Property is a secured mode of finance used by individuals and businesses
2. You get funds by mortgaging your residential or commercial property
3. You can get funds equivalent to a certain percentage of the property’s value
4. Loan Against Property interest rates are competitive than unsecured loans

# Purpose of a Loan Against Property

Loan Against Property serves different purposes for individuals as well as businesses. It is often used by individuals to address essential life goals such as higher education of children, marriage or making a down payment for a home or car.

On the other hand, businesses use it to avail funds for expansion, R&D, product development & marketing and promotion among others. Businesses also use it to bridge gaps in cash flow and fund new requirements. Generally, this loan is given against residential or commercial properties.

# Benefits of Loan Against Property

1. Competitive interest rates - Since a Loan Against Property is a secured mode of finance, the interest rates are comparatively lower. This results in lower EMIs, making it easy to for the borrower to address other financial needs without straining his/her budget.

2. Long repayment tenure - A Loan Against Property generally has long repayment tenure. This brings down the EMI, thereby facilitating repayment and easing the burden on the borrower.

3. Continuous ownership of the property - A Loan Against Property helps the borrower unlock the dormant potential of the asset. The borrower continues to own and use the property, while availing funds for the same. However, it’s essential to not default on EMI which might lead to legal hassles in the future.

# Eligibility for Loan Against Property

There is a slight difference in Loan Against Property eligibility for individuals and businesses. Generally, for salaried individuals, lenders fix a certain annual income below which they don’t approve the application. There’s also a certain age (minimum and maximum), criteria for lending.

Businesses, too, need to have a certain turnover for availing a Loan Against Property. Today, most lenders spell out the eligibility norms on their websites.

# Documents required for Loan Against Property

While the list of documents varies across lenders, salaried individuals need the following financial documents for availing Loan Against Property:

- Income tax returns of the previous 2-3 years or the salary slips, or Form 16 from the employer
- Bank statement of the previous few months

Businesses need to produce:

- Audited ITR financials
- Bank statements of the main account along with other accounts as mentioned in the balance sheet
- Certificate of incorporation for companies
- Partnership deed and partnership authority letter (in case of a partnership firm)
- Shareholding patterns in case of private/public limited company

Along with these documents, one needs to attach photocopy of:

- PAN card
- Identity proof
- Address proof
- Business continuity proof
- Passport-size photographs

Sujesh Soman
+91 8129977888

20/02/2021

Home loan bay is back in action..

Kindly shoot your quires related to your financial requirements. Solutions will be addressed by experts in Financial segments.

Regards
Sujesh
+91 8129977888

25/04/2014

Dear Friend's & Reader's, I have joined TATA Capital Financial Services Limited as Sales Manager - Home Equity. Now onwards I will be updating this page once in a week only.

Regards
Sujesh Soman

22/04/2014

HOME LOAN: HOW TO PICK THE RIGHT BANK

Considering every possible, decision-affecting factor, planning out everything and following it systematically is the key to a smooth, hassle-free journey to owning your dream abode.
There are numerous factors that help make a better decision when selecting the right provider for your home loan. Six of them are discussed below:

1. PROCESSING AND DISBURSAL SPEED
Dealing with a lender that rules out the possibility of any delays and is quick in processing a home loan application always proves beneficial in the long run. Normally, if everything is in order, it takes 10-15 working days for banks to process an application.

Once approved, the lenders take additional 3-5 days for disbursing the amount of sanctioned loan.

2. LOAN QUALIFICATION
Internal lending criteria vary from one bank to another and it is on the basis of these that a particular amount of home loan is approved for the borrower. The criteria might cover the borrower's age, job profile (preferably salaried, because of easily understandable salary slips and ITRs), employment stability, credit history, among other aspects.

There are several calculators and eligibility charts available on internet, which help the borrowers in apprehending their eligibility well in advance.

3. REPAYMENT TERMS
There are certain terms and conditions pertaining to repayment of the home loan imposed by banks on customers. Potential borrowers must clarify the terms related to settlement/foreclosing the outstanding amount, transferring the balance to another lender's account, prepaying a part or full amount of home loan, and other things, before finalizing a lender.

4. HOW MUCH SHOULD YOU PAY?
The cost of taking a home loan would certainly vary from one bank to another. It depends upon the decision-making abilities of the borrower whether securing a home loan would prove to be an economical affair or a cost laden one.

However, there are certain things that one must weigh carefully at the cost front.

5. FIXED VS. FLOATING RATES
The rates vary from time to time, and as in the case of a well-planned investment portfolio, one must analyse the liability portfolio and plan on getting the maximum out of it. As a rule of thumb, if the loan period ranges between 2 to 5 years, going with a fixed interest rate is considered an ideal move.
Otherwise, floating rates are considered ideal for long tenure loans.

6. HIDDEN CHARGES
Hidden charges is something that tends to prick the pocket of borrowers the most. Thus, while narrowing down the options, it is advisable to compare the processing fee, down payment, valuation fees, prepayment costs and other charges levied by different lenders.

Let's take a look at processing fees charged by various lenders on home loans:
Bank Processing fees/charges (as of April 7, 2014)

ICICI Bank 0.5 - 1 per cent of the amount of loan or Rs. 1,500 (Rs.2,000 for Delhi, Mumbai and Bangalore), whichever is higher, plus service tax and surcharge, as applicable

HDFC Bank - 0.5 per cent of the loan amount plus service tax and cess, as applicable

State Bank of India - For loan up to Rs. 25 lakh - 0.25 per cent of the loan amount; minimum charge of Rs. 1,000. Between Rs. 25 lakh and Rs. 75 lakh - Rs. 6,500. Above Rs. 75 lakh - Rs. 10,000

Punjab National Bank - For loan up to Rs. 3 crore - 0.5 per cent of the loan amount, a maximum of Rs. 20,000, plus taxes and surcharge. Above Rs. 3 crore - Rs. 50,000 plus taxes and cess

Axis Bank - Up to 1 per cent of the loan amount, subject to a minimum of Rs. 10,000

MAKING THE CHOICE
Different lenders use different yardsticks for measuring the borrower's eligibility. Why shouldn't borrowers consider doing research and compare several competitive features of home loans offered by different lenders? It is better to have the policies, facts, terms and conditions clarified well in advance before locking in a seemingly ideal home loan with any lender.

Sujesh Soman
+91 81299 77888

* Article taken from internet.

21/04/2014

BENEFITS OF JOINT HOME LOAN

Are you planning to take a home loan? Would you like to enjoy additional benefits from it?

Here's the answer for you - a joint home loan. There are various benefits that joint home loans offer you. You can now apply for joint home loans instantly. A joint home loan is nothing but simply adding a co-applicant or co-borrower in your home loan application.

Let's explore some interesting facts about these loans.

WHO CAN BE A CO-APPLICANT?
A co-applicant or co-borrower is your partner along with whom you are applying for home loan. Partner for home loan can be parents, spouse or siblings. Be careful of mixing the words co-owner and co-applicant/borrower. A co-owner is someone who has share in the property. Few banks insist that co-owners should also be co-applicants; however, the reverse is not true.

WHAT DOCUMENTS ARE NEEDED?
The documents needed for joint home loans are the same as any other home loan. The only difference is that here documents are needed from both applicant and co-applicant. General home loan documents needed are identity proof, address proof, salary slips and bank statements.

HOW ABOUT LOAN ELIGIBILITY?
A common question asked by many people is - 'Will the home loan eligibility amount increase if we opt for a joint home loan'? The answer is yes, it will. Banks will be ready to offer you higher loan amounts if you opt for a joint home loan. The reason for it is that your repayment capacity increases as there are now two people who repay this loan. How much it would increase depends on the income of co-applicant. Apart from income, organization reputation is also considered. Be sure that you compare multiple loan offers before deciding on loan eligibility.

JOINT HOME LOAN TAX BENEFITS
We all use home loans to save tax. Joint home loan tax benefits are an extension to the tax exemptions provided by home loans. As we all know, we can claim tax benefit of up to Rs. 1 lakh of the principal amount of home loan under section 80C and up to Rs. 1.5 lakh under section 24 of income tax act. In the case of joint home loans, applicant as well as co-applicant can enjoy tax benefit for the contributions towards the loan. The amount of tax benefit that can be availed here would be according to the proportion of contribution, subject to the limits specified above.

REPAYMENT PROCESS
Repayment of the joint home loan taken is the collective responsibility of both the borrower as well as the co-borrower. However, either of them can pay the home loan EMIs (equated monthly instalments) or they can create a joint account to make the payments. It is upon the borrowers to decide which option to choose among these. There is no real hard and fast rule for this.

CONCLUSION
As seen above, joint home loans are definitely beneficial as compared to normal home loans. In case you are looking for a home loan and you can speak to your blood relatives to get a joint home loan. However, be sure that the EMIs are paid as per schedule. If one of you fail to contribute towards the EMI payment, the other will be liable towards payment. In case of delay or default in EMIs, legal action will be taken against the borrower as well as co-borrower.

Sujesh Soman
+91 81299 77888

* Article taken from internet.

19/04/2014

Easter also known as Pascha or Resurrection Sunday, is a festival and holiday celebrating the resurrection of Jesus Christ from the dead, described in the New Testament as having occurred three days after his crucifixion at Calvary. It is the culmination of the Passion of Christ, preceded by Lent, a forty-day period of fasting, prayer, and penance.

Easter fills us with Hope, Joy and Warmth. It’s a time to get together with friends, family & loved ones and celebrate this joyful time.

We wish everyone a very HAPPY EASTER!!!

Sujesh Soman
+91 81299 77888

16/04/2014

Latest Home Loan Trends - April 2014

HDFC Ltd: HDFC Ltd offers Housing loans for Purchase of Flat, Home, row house. Interest rates available on the HDFC home loans range from 10.25 % to 10.50%.

SBI (State Bank of India): SBI offers Home loans in 5 Different Schemes with no penalty & hidden costs at all. Interest Rates available from 10.10 % to 10.30 %.

LIC Housing Finance: LIC Housing offers loan under TWO schemes— Griha Prakash for Home/Flat purchase, Griha Prakash for construction and for loan extension. Interest rates Starts from 10.30 % to 10.95 %.

Here’s the updated & current interest rates on home loans:
Home Loan Interest Table
Financial Institution Home Loan Rates
SBI (State Bank of India) 10.10% – 10.30%
LIC (LIC Housing Finance) 10.30% to 10.95%
HDFC Ltd 10.25% to 10.50%
ICICI Bank 10.25% to 10.50%
Axis Bank 10.25%
IDBI Bank 10.25% (Festive offer)
Bank of Baroda 10.25%
Union Bank 10.25%
Bank of India 10.25%

EMI Per Lac on the Basis of Floating interest rates on 20 year home loan:
• SBI 10.10% – Rs.971.66
• HDFC 10.25% – Rs.981.64
• IDBI Bank 10.25% – Rs.981.64
• Axis Bank 10.25% – Rs.981.64
• ICICI Bank 10.25% – Rs.981.64

*Interest rate EMI (Rs per lakh)

Sujesh Soman
+91 81299 77888

* Article taken from internet.

15/04/2014

Vishu, one of the major festivals for Malayalees, is being celebrated on Tuesday (15 April) this year. It marks the first day of the New Year in the Malayalam calendar.

The festival is celebrated with vigour and fanfare. It is also considered as the festival of lights, wherein decorated lamps are lit and fireworks are burst to celebrate the special occasion.

People wear new clothes, offer prayers to Lord Krishna and prepare for the auspicious day. Vishu Kani and Vishu Kaineetam are part of the festival.

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