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Benefits Of Taking A Joint Home Loan

Owning a home in most cases is a once-in-a-lifetime investment and a collective dream of a family. There are several factors such as income, age, repayment capability, etc. which are considered by a lender while approving the home loan Many hands make light work holds true when it comes to a joint home loan. The involvement of multiple applicants as co-borrowers eases the repayment of loans and increases the chances of getting a higher loan amount. What is A Joint Home Loan? A joint home loan is a home loan taken with a co-borrower to share the financial burden and to get better home financing options. A co-borrower also known as a co-applicant is an immediate family member or a relative with whom the joint home loan is taken. All co-applicants can claim tax benefits under a joint home loan. Unless the co-applicant is a sibling or a relative, it is not mandatory for the co-applicant to be the co-owner of the property you wish to buy. However, all the members mentioned in property documents as co-owners have to be the co-applicant for a home loan. Who can Co-apply? Before we understand who can be a co-applicant when applying for a joint home loan. It is important to be able to differentiate between a co-owner and a co-applicant. A co-owner as established by the property documents is a joint owner of the property. On the other hand, a co-applicant can be any immediate family member who has a steady income flow. When applying for a joint home loan, it is mandatory to have a co-owner as a co-applicant while vice versa is not mandatory. Benefits Of A Joint Home Loan There are several benefits associated with a joint home loan. Some of the key benefits of a joint home loan are mentioned below. Higher loan amount The more the merrier holds true when it comes to a joint home loan. There are multiple earning members as co-applicants in case of a joint home loan. A lender considers the income of both the co-applicants while deciding the loan amount to be sanctioned. The more the income, the higher would be the amount of loan sanctioned by the lender. The higher loan amount gives you the opportunity to go for that dream home that you might not have been able to afford with a regular home loan. Ease of repayment One of the primary factors considered by a lender while approving the loan is the repayment capability of the borrower. In a joint home loan, there are multiple borrowers as co-applicants for the same loan. The EMIs repayment is shared among the co-applicants which reduces the burden on each member. This could also help in paying higher EMIs, reducing the loan tenure and the interest paid to the lender. Higher EMIs and shorter loan tenure increase your chances of becoming debt-free quicker. Tax relaxations A joint home loan allows the co-applicants to claim tax benefits separately. Under Section 80C and Section 24 of the Income Tax Act, a tax benefit up to INR 1.5 lakh on the principal amount and INR 2 Lakh on the interest amount can be claimed by the co-applicants. Please note that these relaxations can not exceed the interest amount paid to the lender. Special benefits for women There are home loan benefits for women if one of the co-applicant is a woman then she can avail an additional benefit of lower interest rates offered to women by lenders. [B-02] Bottom Line A joint home loan with your trusted family member as a co-applicant makes the process of acquiring your dream home more convenient and beneficial as compared to a normal home loan. The ease of repayment, higher loan amount, and sharing of financial burden are some of the benefits you reap when you opt for a joint home loan.

08-11-2023

From Application to Approval in 48 Hours? The Reality of Digital Home Loans

Gone are the days of making endless visits to the bank, submitting excessive paperwork to get your home loan approved. Today’s digital home loan process in India is heading towards lightning-fast approvals by using video calls and online document exchange. Still, do you think you can get a home loan approved in 48 hours? If you’re a working professional fighting strict deadlines or an entrepreneur always on the move, don’t worry! This guide gives you an idea of how it is actually possible to get your online home loan approval by sitting on your couch or when you’re not in town. We’ll break it down to help you smartly navigate digital lending. Key Takeaways ● Understand what “48-hour approval” actually means ● Learn how video KYC helps home loan processes work & its advantages ● Discover realistic timelines for the different stages of digital home loan processing ● Tips to speed up your application Table of Contents The Digital Home Loan Revolution What Does "48-Hour Approval" Really Mean? The Step-by-Step Digital Process Video KYC: Your New Best Friend How to Maximize Your Chances of Fast Approval Red Flags to Watch Out For Final Thoughts Frequently Asked Questions The Digital Home Loan Revolution The Indian home loan landscape has gone through a dramatic transformation. What used to take anywhere between one and two months can now happen within a week. Most banks and Non-banking Financial Companies are digitizing their entire home loan application process, making it fast and streamlined for applicants. It goes beyond speed; it is convenient, transparent, and reduces human error. Using this digital landscape, you can track your application status in real-time, upload documents, and also complete video KYC. What Does "48-Hour Approval" Really Mean? Let’s be honest about the 48-hour approval. It doesn't mean that you apply for the loan on Tuesday and expect the amount in your bank by Thursday. Here’s what it typically covers: What is possible in 48 hours: ● Assessing the initial eligibility criteria ● Verification of credit score and income documents ● Preliminary valuation of the property ● In-principal approval or sanction letter What may take more time: ● Detailed property valuation and verification - may take up to 10 days ● Legal document verifications - may take 3 to 5 days ● Physical visit and valuation of the property ● Documentation of final loan and disbursal - may take 2-3 days The 48-hour loan approval timeline gives you an edge that ‘you’re eligible for the home loan’, which can be used to negotiate the rates with the property seller. The Step-by-Step Digital Process Here’s how a digital home loan application in India works: Application Submission can take 1-2 hours ● Fill the online application form with all the basic details ● Upload all the essential documents like pay slips, bank statements, etc. AI-Powered Screening can be between 3 and 24 hours ● Automated income calculation ● CIBIL score verification ● Verification of employment through database matching ● Bank statement analysis using algorithms Human Review and Video KYC can be within 24 to 48 hours ● Loan officers review the AI recommendations ● Video KYC appointment scheduled and completed ● Initial review of property documents ● Generation of in-principle approval Detailed verification can take 3-10 days ● Legal verification of property ● Technical evaluation ● Final documentation ● Signing of the loan agreement (mostly digital) Video KYC: Your New Best Friend Video KYC home loan processes are a game-changer, especially after 2020. You do not have to make any branch visits; you can do it from any location, and it is faster than the manual process. Here’s how you can get it done: Video KYC Process: ● A 10-15-minute video call is scheduled with the loan officer ● LIVE document verifications are done ● Your identity is confirmed ● Address verification is done through LIVE location sharing ● Recording of the entire video for compliance purposes What you need for the Video KYC Process: ● A stable internet connection ● A room with good lighting ● All documents in your laptop or phone ● Your government ID for verification How to Maximize Your Chances of Fast Approval Before applying for loan approval: ● Check your CIBIL score and increase it if it is low ● Keep bank statements and salary slips for the last 6 months ● Check the property documents through a lawyer ● Use any tools and calculate a realistic home loan amount During the application process: ● Use the lender’s app for quick processing ● Respond to queries and address them immediately ● Keep your mobile phone handy for any verification calls ● Schedule video KYC at the earliest slot available Key notes to keep in mind: ● Apply to 2-3 lenders, but give a 15-day window to reduce any impact of CIBIL score. ● Select properties that are pre-approved with the lenders ● Your bank account needs to be stable during the entire application period till loan disbursal. Red Flags to Watch Out For ● Never pay the processing fees upfront before getting loan approval ● Do not get carried away if anyone guarantees loans without proper documentation or verification ● Be strong, don’t succumb to pressure tactics, and rush to sign without reading the terms ● Stay away from suspicious apps. Use only the official bank/ NBFC app or websites. Final Thoughts Does a fast home loan process in India get approval in 48 hours? Yes, with the right approach and proper documentation, you can get it. Online home loan approvals are genuinely faster than the manual methods. Understanding the difference between ‘approval’ and ‘disbursal’ can help you be ready for the process timelines without any disappointments. Plan for 10-15 days for the complete processing and disbursal of the loan, provided all the documentation is in place. Frequently Asked Questions Q1. Is a 48-hour home loan approval really possible? If you have submitted all the documents, have a good credit score, and apply to digitally operated lenders, you can get in-principle approval within 48 hours. Q2. What is video KYC, and is it safe? Video KYC is like the regular KYC asked by banks, where they need to verify details about the account holder. The only difference is that it is done over a video call instead of you having to go personally to the bank. Q3. What documents do I need for fast approval? ● Salary slips and bank statements for 6 months ● Valid ID proof, address proof, and property documents ● ITR filing copy Q4. Can self-employed individuals get 48-hour approval? In general, the loan approvals for self-employed persons may take more time, as there may be more document scrutiny. Still, if you have clean ITR filings, good bank statements, and all other documents handy, it is possible to get approval in 48 hours. Q5. What's the difference between pre-approval and final approval? Pre-approval only confirms if you are eligible to take the loan. Final approval is once the property and legal verifications are done. Q6. Are digital home loans more expensive? Both manual and digital loan interest rates depend on your profile and the prevailing market conditions, and not on the method used to apply. Q7. What if my application gets rejected digitally? You can still apply to other lenders by correcting the mistakes made when applying for the rejected digital loan. Q8. How do I track my digital home loan application? Most banks/NBFCs offer application tracking as a feature in their apps or websites, which can be used.

15-09-2025

Guide

A Guide for NRIs: How to Get a Home Loan in India While Living Abroad

Living outside India doesn't have to mean you can't dream of owning a house in India. Are you an NRI dreaming of owning a home in India but unsure about how to get a home loan while living abroad? This guide will walk you through the entire process of getting an NRI home loan in India 2025. Key Takeaways ● Indians living abroad can buy residential property or plots, but not agricultural land. ● Most banks offer online application options, making the NRI housing loan process easier for those living overseas. ● Repayment needs to be routed through NRI accounts. Table of Contents What is an NRI Home Loan? Why Do You Need an NRI Home Loan? Who Can Apply for a Home Loan for a Non-Resident Indian? Documents Required for NRI Home Loan India 2025 How to Apply, Step-by-Step NRI Housing Loan Process How Long Does It Take? Common Mistakes to Avoid Final Thoughts FAQs What is an NRI Home Loan? An NRI home loan in India in 2025 is a loan designed specifically for Non-Resident Indians who want to purchase a home in India. If you live abroad, either for work or business, this allows you to buy residential property or a plot of land in India with the help of a loan from an Indian bank or financial institution. This loan cannot be used to buy agricultural land, farmhouses, or plantation land according to FEMA rules for home loans. Why Do You Need an NRI Home Loan? Buying property in India outright can be challenging for most people, and NRIs are no different. Even if you have savings, using an NRI home loan spreads out the cost over several years. Here are a few reasons why this is useful: ● For many NRIs, buying a home in India is also an emotional decision, connecting them to their roots and future plans. ● It helps you manage your finances better by spreading payments over a 15- to 30-year period. ● Owning property gives you financial security as an investment and an asset in India, which may come in handy in the future. Specifically because, typically, property values generally rise over time. Who can apply? To qualify for an NRI home loan, banks require you to meet certain eligibility criteria. These are based on your age, employment status, income, and country of residence. Here are the key points: ● You should be an Indian citizen residing outside India, holding a valid Indian passport. ● Your age should be between 21 and 70 years at the time of loan maturity. ● Both salaried professionals and self-employed NRIs can apply. ● Typically, you would need to have at least 1 to 3 years of work experience. ● The minimum income requirement tends to vary according to the country you live in. ● Maintaining a good credit score is essential to improve your chances of loan approval. Generally, banks look for a credit score of at least 670. However, banks may restrict loans from NRIs residing in certain countries due to RBI guidelines or local regulations. Documents required Getting your documents ready before applying will make the whole process much smoother. The home loan documents you will typically need include: Document Purpose Valid Passport Proof of identity and Indian citizenship Valid Visa Proof of your legal right to live/work overseas Overseas Address Proof Confirmation that you currently live outside India Indian Address Proof Establishes your connection to India Employment Contract or Offer Letter Shows proof of employment and income Salary Slips/Bank Statements Demonstrates steady income and transactions Income Tax Returns Establishes your income level and tax compliance Power of Attorney If someone in India is authorized to act for you Property Documents Details of the property you intend to buy How to apply: Step-by-Step NRI Housing Loan Process Applying for a home loan while living abroad is simpler than many think. Here’s how you can go about it step-by-step: Check your eligibility first. Many banks provide online eligibility calculators. Enter your age, income, employment details, and country to get a quick estimate of your loan eligibility. Compare loan offers from different banks. Look at interest rates, loan tenure, processing fees, and customer reviews. Also, check if the bank offers online application and servicing options, which can be a big help if you are abroad. Prepare your documents carefully. Make sure you have passports, visas, income proof, tax returns, and property-related documents in order. Submit your application. Many banks allow NRIs to apply online, which is very convenient. Wait for the verification process. Banks will verify your documents, employment, income, and property details. Sometimes, they may require phone interviews or video calls. Receive loan sanction. Once approved, you will get a sanction letter outlining the terms of the loan. Sign the agreement and complete the formalities. Following this clear roadmap helps make the NRI housing loan process less confusing, even if you are managing it from overseas. How long does it take The total time from application to loan disbursement usually takes between a few days to about a month. It depends on how fast you submit your documents, the bank’s verification process, and your responsiveness to any queries. Common mistakes to avoid To avoid delays or rejection, watch out for these common mistakes: ● Applying with incomplete or incorrect documents. ● Not understanding FEMA rules for home loans and trying to buy restricted property types like agricultural land. ● Not comparing interest rates and fees among banks, leading to more expensive loans. ● Providing wrong information on forms or missing disclosures. ● Ignoring your credit score or failing to check it before applying. ● You may also want to appoint someone to represent you with a Power of Attorney, locally, if needed. Final Thoughts Taking an NRI home loan is not complicated, but it requires more preparation and patience compared to loans for resident Indians. Thanks to digital banking and increased familiarity with NRIs, many banks now offer streamlined processes and strong support. By planning well, collecting the right documents, and staying informed, you can successfully buy your dream home in India even from thousands of miles away. Frequently Asked Questions 1. Can I buy agricultural land with an NRI home loan?No, NRIs are not allowed to use home loans for purchasing agricultural land, plantations, or farmhouses. Loans are only for residential properties and plots. 2. How do I repay the home loan from abroad?Repayments must be made through your NRE or NRO account or through RBI-approved overseas remittance channels. 3. What is the usual loan tenure for NRIs?Loan tenures typically range from 5 years to 30 years, depending on the bank and your repayment ability. 4. Do I need a Power of Attorney?If you want someone to manage paperwork or register property on your behalf in India, a Power of Attorney is a good idea. 5. Are interest rates higher for NRIs?NRIs often pay slightly higher interest rates because banks see lending to them as higher risk. 6. How can I easily check my loan eligibility?Most banks provide simple online calculators that use your information to quickly estimate your loan eligibility.

15-09-2025

Home Loan

Are Home Loan Rates Negotiable? How to Get the Best Deal From Your Lender

Many people assume that home loan interest rates are fixed and non-negotiable. In reality, there is often room to negotiate home loan rate with banks and housing finance companies. Whether you are a first-time homebuyer or planning to switch lenders, knowing how to reduce interest rate can save you thousands of rupees over the loan’s tenure. In this blog, we will share practical home loan bargaining tips that can help you secure the best deal possible and lower your monthly EMIs. Key Takeaways Learn why and how lenders decide interest rates Discover ways to negotiate home loan rate effectively Get insider home loan bargaining tips to improve your chances Understand how to reduce interest rate over the loan tenure Table of Contents Can You Really Negotiate a Home Loan Rate? How Lenders Decide Your Rate When Is the Best Time to Negotiate? How to Reduce Interest Rate Before Applying Home Loan Bargaining Tips After Loan Approval Switching Lenders for a Better Rate Why Choose Piramal Finance? Final Thoughts FAQs 1. Can You Really Negotiate a Home Loan Rate? Yes, you can often negotiate home loan rate if you know how to approach the lender. Many borrowers don’t realise that interest rates are not always rigid. Lenders may be willing to adjust rates if they see you as a low-risk customer. This is especially true in competitive markets where banks and NBFCs are actively looking for new customers. Negotiation works best when you have a strong repayment profile, good credit score, and clear understanding of your options. 2. How Lenders Decide Your Rate Before you learn how to reduce interest rate, it helps to know what factors influence it: Credit score: A score above 750 increases your bargaining power. Income stability: A steady income assures lenders of timely repayments. Loan-to-value ratio: The more you pay upfront, the better your rate can be. Relationship with the lender: Existing customers with good repayment history often get better offers. Market conditions: Falling repo rates or competitive lending seasons can create room for negotiation. Understanding these factors helps you plan your approach when asking for rate reductions. 3. When Is the Best Time to Negotiate? Timing matters when you want to negotiate home loan rate. Here are a few situations when lenders may be more flexible: Festive seasons: Lenders run promotional campaigns with lower rates. Repo rate cuts: When RBI lowers rates, lenders may pass on benefits to new borrowers faster. Year-end sales targets: Some lenders may offer discounts to meet their targets. When switching loans: If you are considering a balance transfer, your current lender may match the new rate to retain you. By negotiating during these windows, you have a better chance of success. 4. How to Reduce Interest Rate Before Applying To maximise your chances of getting a lower rate from the start: Improve your credit score: Pay bills on time and reduce credit card debt. Offer a higher down payment: This lowers the lender’s risk. Choose the right tenure: Shorter tenures usually have lower rates. Research lenders: Compare rates from multiple institutions before committing. Highlight your profile: Show proof of stable income, low debt, and strong repayment history. These steps give you more leverage in discussions and make lenders more willing to reduce your rate. 5. Home Loan Bargaining Tips After Loan Approval Even after your loan is sanctioned, there are ways to save: Request a rate match: If another lender offers you a lower rate, ask your current lender to match it. Shift to floating rate: If market rates drop, floating rates let you benefit from the decrease. Pay regularly and on time: A spotless repayment record can help you negotiate a lower rate during periodic reviews. Avoid unnecessary add-ons: Some bundled products increase your effective cost. These home loan bargaining tips work best when you maintain a good relationship with your lender. 6. Switching Lenders for a Better Rate If your lender refuses to lower your rate, you can explore a balance transfer to another lender offering better terms. This involves transferring your outstanding loan to the new lender at a lower rate. However, before making the switch: Check the processing fees and transfer costs. Calculate the total savings over the remaining tenure. Ensure the new lender offers the same or better terms for repayment flexibility. Sometimes, just showing your lender that you are considering a transfer is enough to get them to revise your rate. 7. Why Choose Piramal Finance? At Piramal Finance, we believe in offering transparent, fair, and competitive home loan rates. We provide: Customised interest rates based on your profile Minimal paperwork and quick processing Flexible tenure options for easy repayment Expert advice on how to reduce interest rate effectively Whether you’re applying for your first loan or switching from another lender, we focus on helping you save more over the life of your loan. 8. Final Thoughts To sum it up, yes, you can negotiate home loan rate and get better terms if you plan ahead and use the right strategy. Knowing how to reduce interest rate and applying the right home loan bargaining tips can help you save significantly over your loan tenure. Don’t assume that the first rate you are offered is the final one. Approach your lender with confidence, back your request with facts, and compare multiple offers before making a decision. The effort you put in today can translate into big savings tomorrow. 9. FAQs Q1. Can I negotiate my home loan interest rate after the loan is approved?Yes, especially if market rates drop or you have offers from other lenders. Q2. What’s the most effective way to reduce interest rate?Maintain a high credit score, pay on time, and negotiate with evidence of better offers. Q3. Are lenders open to bargaining?Yes, particularly during festive seasons, repo rate cuts, or when they are competing for customers. Q4. What are the best home loan bargaining tips?Compare rates, highlight your strong repayment record, and negotiate during favourable market conditions. Q5. Is switching lenders worth it?It can be, but calculate the total cost and ensure the savings are significant. Q6. Does paying a higher down payment help in negotiation?Yes, it reduces the lender’s risk and can help you secure a lower rate.

15-09-2025

Tips & Advice

Home Loans for the Self-Employed: How to Ace Your Application in 2025

Being self-employed should not mean that your dream of owning a house cannot become a reality. You may run a small business, do some freelance work, or even work as a consultant. Still, getting a home loan for the self-employed is totally possible in 2025. Although the process may seem more complicated compared to that of a salaried employee, with the right documentation, you can confidently apply and obtain approval for a home loan. This article will guide you through what lenders are looking for, the documents you need, and how to present your application strongly so that you get approved on your first try. Key Takeaways ● Learn how to apply for home loans for the self-employed ● Understand how business owners' home loan eligibility is different from regular applications ● Prepare your application in such a way that you get the home loan approval the first time Table of Contents What Lenders Need To Approve Self-Employed Home Loans Essential Documents for Self-Employed Home Loan Business Owner Home Loan Eligibility Criteria How to Strengthen Your Application Common Mistakes to Avoid Final Thoughts Frequently Asked Questions What Lenders Need To Approve Self-Employed Home Loans Let’s be honest. When you’re self-employed, proving your income is not as easy as showing a salary slip. Your earnings may vary month on month - there may be some great months and there may also be some lean periods. Lenders understand this and that is why they need more documentation to prove that you can repay the home loan. Before we get into the documentation requirements, let’s understand what goes through the lending bank’s mind when they review an application of home loan application for the self-employed: ● Will you be able to consistently pay your EMI for 15-20 years? ● Is your business or freelance job giving you enough profit? ● How sustainable is your business, and what is its growth potential? ● Are you managing money responsibly? Once you know the answers to these questions, you can proactively address them in your application. Essential Documents for Self-Employed Home Loan Here’s the checklist of the documents for a self-employed home loan application: Personal Documents ● Aadhaar Card or PAN Card Copy, along with the original for verification ● Recent passport-size photographs ● Proof of residence, like utility bills, rental agreement, etc. Business Documents ● Registration certificate for the business, like a partnership deed, trade licence, etc. ● GST registration certificate ● Professional qualification certificates of consultants, CAs, etc. ● Proof of office address, like utility bills or a rental agreement Financial Documents ● Bank statements for the last 1 to 2 years (personal & business) ● ITR for the last 2-3 years ● Form 16A, if applicable ● Profit & Loss statements audited by a CA ● Balance sheet for 2-3 years ● CA certificate stating your income on a monthly or annual basis Property Documents ● Sale agreement ● Property papers and title documents ● Approved building plan ● NOC from society or the builder Business Owner Home Loan Eligibility Criteria The eligibility criteria may differ from one lender to another. Still, here are some of the generic requirements for business owner home loan eligibility criteria: Personal Details: ● Age should be between 23 and 65 years ● Professional experience should be a minimum of 3-5 years in the same field as the business ● Minimum annual income needs to be Rs 2-3 lakhs, & this varies according to the city ● CIBIL score of more than 650. An ideal CIBIL score of more than 750. ● A Clean credit history, definitely no defaults ● Consistent replaying of existing loans, if any ● A debt-income ratio of less than 40% ● A Fixed Obligation to Income Ratio (FOIR) of less than 55% Business Details: ● Business needs to be in operation for 2-3 years ● Consistent profits for a minimum period of 2 years ● Stable and growing income trend How to Strengthen Your Application ● Show a growing income: While submitting your ITR, add a note explaining any fluctuations in income and also highlight overall growth. In case you had a rough year, explain how you overcame it. ● Maintain separate business account: Keep your personal and business accounts separate, as it shows financial discipline and is easy for lenders to assess your business income or profits. ● Audited financial statements: When a CA audits your statements, it adds credibility to your application and shows that you professionally run your business. ● Higher down payment: When you offer to pay more than the minimum 20% of property value, the lender’s risk is less, and they may even offer better interest rates. ● Add a co-applicant: When a salaried person is a co-applicant, maybe a spouse, parent, or business partner, the lenders may feel more confident in approving your application. ● Choose the bank carefully: Applying with banks that hold your business accounts can make the process smoother as they already know the financials of the business. Common Mistakes to Avoid In the last section, we saw what you can do to get your loan approved. Here’s what you should not do: ● Don’t show too many cash transactions. Use digital methods to collect and spend money. ● Never miss an ITR filing deadline, as it can impact your credibility ● Avoid adding personal expenses or income into your business account ● Stay away from understating income, as it may save taxes but hurt your loan eligibility ● Apply only to selective loans, as every rejection may hurt your credit score. Final Thoughts Getting a home loan for self-employed individuals needs more preparation than that for a salaried employee, but you can easily get it approved. When you present yourself as a successful, stable business owner who is self-employed, the banks will have no reason to reject your application. Ensure all your documentation is in place and make them see you as a safe bet. Frequently Asked Questions Q1. What is the minimum number of years a business should be operational to apply for a home loan? Most lenders require your business to be operational for a minimum of 2 to 3 years with consistent profits. Q2. Can I get a home loan without an ITR as a self-employed person? ITR is the main proof of income for a self-employed person. Though some lenders may accept bank statements along with CA certificates, there is no guarantee that the home loan will be approved. Q3. Is the interest rate higher for home loans applied for by self-employed persons? Interest rates are determined based on many factors. If a self-employed person is eligible for the home loan and has proper documentation, the interest rate can be the same as a home loan applied for by a salaried employee. Q4. How much home loan can I get as a self-employed person? Just like a home loan for a salaried person, about 60 to 80 percent of the property value can be approved as a home loan. It will depend on the income, credit score, and the lender’s policies. Q5. Can freelancers get home loans? Freelancers can also get home loans if they can show consistent income through ITRs, bank statements, and client contracts. Q6. Do I need a guarantor for a self-employed home loan? It is not essential to have a guarantor, but having a co-applicant or guarantor can strengthen your application in cases of irregular income.

15-09-2025

Guide

The Ultimate First-Time Homebuyer's Guide to Getting a Loan in India

Getting your first-time home loan in India can feel like learning a new language, but it doesn't have to be scary. This guide breaks down everything you need to know about home loans in simple terms and easy steps. We'll cover everything from understanding what a CIBIL score is to getting your loan approved, making sure you’re all set! Key Takeaways ● A home loan is money borrowed from a bank to buy a house, which you pay back. ● Your CIBIL score (300-900) is like a report card for how well you handle money. ● You should have a CIBIL score above 700 Table of Contents What is a Home Loan? Why Do You Need a Home Loan? Who Can Apply for a Home Loan? Documents Required How to Apply for a Home Loan How Long Does It Take? Common Mistakes to Avoid Final Thoughts FAQs What is a Home Loan? A home loan is money that a bank or financial institution like Piramal Finance lends you to buy a house, at an interest. You do not pay it back all at once. Instead, you pay a fixed amount every month (called Equated Monthly Installments or EMI) until the loan has been repaid. Why Do You Need a Home Loan? Houses in India are expensive. Even a modest 2BHK apartment in a tier-2 city can cost ₹30 - 50 lakhs. In metros like Mumbai or Delhi, prices can go up to several crores. Most people do not have this much cash lying around, and that's perfectly normal. Here's why a home loan for first-time buyers makes sense: ● You can buy now, pay later: Instead of saving for 20 years to buy a house with cash, you can buy it today and pay for it over the next 20 years, all while living in it! ● Tax benefits: The government gives you tax deductions on both the principal amount and interest you pay on your home loan. This can save you thousands of rupees every year. ● Inflation protection: House prices generally increase over time. By buying today with a loan, you protect yourself from future price increases. Who Can Apply for a Home Loan? Almost anyone with a steady income can apply for a home loan, but there is an overall eligibility criteria like: ● Age: This depends. At Piramal Finance, the age for salaried individuals should be between 21 and 70 years at loan maturity; for self-employed individuals, the minimum age requirement is 23 ● Income: You need a steady monthly income. Typically, your EMI should be no more than 40-50% of your monthly income. ● Employment: You can be a salaried employee, self-employed professional, or business owner. ● Credit Score: Your CIBIL score for a home loan should ideally be 750 or above. This is like your financial report card that shows banks how responsible you are with money. ● Co-applicant option: If your income doesn’t meet the minimum requirement, you can add your spouse, parents, or children as co-applicants to increase your loan eligibility. In some cases, a co-applicant can also be mandatory. Documents Required Think of documentation as proving three things to the bank: who you are, how much you earn, and which property you want to buy. Identity and Address Proof: ● Aadhaar Card ● PAN Card ● Passport or Voter ID Income Proof: For Salaried Individuals: ● Last 3 months' salary slips ● Last 2 years' Form 16 ● Bank statements for the last 6 months For Self-Employed: ● Last 2-3 years' Income Tax Returns ● Profit & Loss statement ● Bank statements for the last 12 months Property Documents: ● Sale agreement ● Property title documents ● Approved building plan How to Apply for a Home Loan Following the proper home loan steps for first buyers can make the process easy: Step 1: Check Your CIBIL Score Visit the official CIBIL website and get your free credit report. If your score is below 750, work on improving it by paying bills on time and reducing any existing debts. Step 2: Compare Different Lenders and Financial InstitutionsCompare interest rates, processing fees, and loan terms from at least 3-4 banks or financial institutions. Even a 0.25% difference in interest rate can save you lakhs over the loan tenure. Step 3: Get Pre-Approval Many banks offer pre-approval, which gives you a clear idea of your loan amount before you start house hunting. Step 4: Submit Your Application Visit the bank branch with all required documents. Fill out the form carefully and double-check all information. Step 5: Property Verification The bank will send a technical expert to verify the property's legal status and market value. Step 6: Final Approval and Disbursement Once everything is verified, the bank will give final approval and disburse the loan amount directly to the property seller. How Long Does It Take? A first-time home loan approval process typically takes 15-30 days: ● Document submission: 1-2 days ● Initial processing: 3-5 days ● Property verification: 7-10 days ● Final approval: 2-3 days ● Disbursement: 1-2 days Having all documents ready and choosing a property with clear legal titles can speed up the process significantly. Common Mistakes to Avoid ● Focusing only on interest rates: Look at the total cost, including processing fees and hidden charges, not just the rate. ● Borrowing maximum eligible amount: Just because a bank approves ₹50 lakhs doesn't mean you should take it all. ● Not reading the fine print: Loan agreements contain important details about prepayment charges and penalties. ● Choosing the wrong loan tenure: Longer tenure means lower EMI but much higher total interest. ● Not keeping buffer money: Keep 10-15% extra for registration, stamp duty, and moving expenses. Final Thoughts Getting your first house is a significant milestone. Banks want to lend money to people who can repay it. Take your time to understand each step, prepare your documents properly, and don't hesitate to ask questions. The key is preparation and patience. Start by checking your credit score, gathering documents, and researching different banks. A little extra effort in the beginning can save you lakhs of rupees later. Frequently Asked Questions 1. What is the minimum CIBIL score required for a home loan? While some banks approve loans with a score of 650, you'll get the best interest rates with a score of 750 or above. 2. How much loan can I get based on my salary? Banks approve loans where your EMI doesn't exceed 40-50% of your monthly income. Typically, a minimum salary requirement often is Rs 12,000 per month. 3. Can I get a home loan without income proof? No, income proof is mandatory. Self-employed individuals can provide ITR and bank statements instead of salary slips. 4. What happens if I can't pay my EMI on time? Missing EMIs damages your credit score and attracts penalty charges. Consistent missed payments can lead to legal action. 5. Can I prepay my home loan partially? Yes, most banks allow partial prepayment after 6-12 months without charges from your own funds. 6. Is home loan interest tax-deductible? Yes, you can claim a deduction up to ₹2 lakhs per year on interest and ₹1.5 lakhs on principal repayment. 7. What is the difference between fixed and floating interest rates? Fixed rates remain the same throughout the loan tenure, while floating rates change based on market conditions. 8. Can I transfer my home loan to another bank? Yes, through balance transfer. However, consider processing fees before making the switch.

09-09-2025

Home Loan

Fixed vs. Floating Rate in 2025: A Complete Guide to Making the Right Choice

Taking your first step into home loans can seem tricky, but understanding the basics of fixed vs floating home loan in 2025 can help you feel confident and in control. This article breaks down everything in a simple way, no confusing jargon! You will learn what these terms mean, how to decide which is better fixed or floating for you, and practical tips to make your financial journey feel empowering and doable. Key Takeaways ● Fixed vs floating home loan 2025 means choosing between an interest rate that stays the same or one that can change over time. ● Fixed rates give you the comfort of a predictable monthly payment. ● Floating rates can save you money when interest rates drop, but can increase when rates go up. ● There’s a handy table so you can see all how these two differ ● Knowing your home loan interest rate type means no surprises and better budgeting. Table of Contents ● Why This Decision Matters in 2025 ● What Is a Fixed Rate? What Is a Floating Rate? ● Easy Ways to Choose the Right Type ● Final Thoughts ● FAQs Why This Decision Matters in 2025 In 2025, interest rates in India will keep changing because of factors like government policies and economic conditions. The type of home loan interest rate you pick will affect how much you pay monthly and how steady those payments feel. Do not worry, many people find this choice overwhelming and a bit technical. But knowing the difference between fixed vs floating rates helps you make a decision that suits your lifestyle and income, so you feel calm and prepared. What Is Fixed Rate vs Floating Rate? With a fixed rate, your interest rate stays the same for the whole loan period. A floating rate changes according to market conditions, mainly influenced by the central bank’s policy rate. Now that we have these basics down, let’s go deeper into it! Feature Fixed Rate Floating Rate Interest Rate Stability Stays the same for the entire loan tenure Changes based on market conditions and central bank policies EMI (Monthly Payment) Remains constant, making budgeting easy Can go up or down depending on interest rate fluctuations Typical Rate Range in 2025 Generally higher than floating rates by 1-2% Usually starts lower than fixed rates Payment Predictability High. No surprises Variable. Subject to market changes Best Suited For Those who prefer stability and want predictable payments Those comfortable with some uncertainty, wishing to save when rates fall Risk Low risk of payment increase Risk of increased EMIs if interest rates rise Prepayment Penalties Often, higher prepayment penalties Usually, lower or no prepayment penalties Suitability Ideal for those with steady income or tight budgets Suitable for those with flexible income and tolerance for fluctuation Easy Ways to Choose the Right Type ● Think about how you feel: Do you want steady payments and less stress? Then, fixed is probably better for you. If you can handle some changes and want to possibly save money, floating could be the way to go. ● Look at your income: If your earnings are stable and predictable, floating might work. But if your income varies or you want certainty in budgeting, a fixed amount could be safer. ● Compare costs: Fixed rates are generally higher by 1-2%, so use a loan calculator to check your actual monthly payments for both types. ● Read loan terms: Check if there are charges for paying off your loan early, as fixed-rate loans often have more penalties. ● Consider hybrid loans: Some banks let you start with a fixed rate and switch to floating after a couple of years, giving a mix of security and flexibility. ● Always verify current interest rates before deciding, since they fluctuate regularly. Final Thoughts Choosing between a fixed vs floating home loan 2025 isn’t about making a perfect choice—it’s about finding what fits your life and financial comfort best. Whether you go for fixed or floating, or a mix, you’re making a smart step toward managing your money confidently. Remember, understanding your home loan interest rate type empowers you to avoid surprises and take control of your financial future. Frequently Asked Questions What does fixed vs floating home loan 2025 mean? It means deciding if your interest rate will stay the same throughout your loan or move up and down with the market. Which is better, fixed or floating in 2025? Fixed is better if you want steady payments and peace of mind. Floating could be better if you want to save money when interest rates fall and don’t mind some changes. What impacts my home loan interest rate type? Your credit score, income, loan amount, and the bank’s policies influence what rates you get. Can I switch from fixed to floating or the other way? Many banks allow switching once or twice, sometimes with a fee. It’s important to check before choosing. Are fixed rates always more expensive? Typically, fixed rates are 1-2% higher, but they give you predictable EMIs, which can be worth it. Will my EMI change if I pick floating? Yes, if interest rates change, your EMI might increase or decrease. Sometimes, banks extend the loan tenure to keep payments stable. Why do some people prefer floating rates? Because they usually start lower, and you can save money if interest rates drop. Also, floating-rate loans may have fewer penalties for paying off early.

28-08-2025

Guide

5 Smart Strategies to Prepay Your Home Loan and Save Lakhs in Interest

Prepaying your home loan is one of the smartest money moves you can make. Think of it as paying extra money towards your loan to finish it faster and save money on interest. With the right tips to prepay a home loan, you could save lakhs of rupees over your loan. This guide explains everything you need to know about prepaying your home loan in simple steps that anyone can follow. Key Takeaways ● Prepaying your home loan can save you lakhs in interest payments ● Even small extra payments make a huge difference over time ● 5 easy ways to prepay a home loan ● The sooner you start prepaying, the more you save Table of Contents Why Should You Think About Prepaying Your Home Loan? What Exactly is Home Loan Prepayment? 5 Easy Ways to Prepay Your Home Loan Final Thoughts FAQs Why Should You Think About Prepaying Your Home Loan? Here’s an example to make it easy. If you took a ₹30 lakh home loan for 20 years at 8.5% interest. Without prepayment, you will end up paying about ₹53 lakhs in total. That's ₹23 lakhs just in interest! But here's where smart ways to reduce home loan interest come into play. When you prepay even ₹50,000 extra in the first few years, you could save around ₹3-4 lakhs in interest over the loan's lifetime. That is money you could use for your child's education, a dream vacation, or keeping aside for emergencies. The magic happens because of how home loan interest works. In the early years, most of your EMI goes towards interest, not the actual loan amount (called principal). When you prepay, you are directly cutting down the principal, which means less interest gets added to the remaining amount. Think of it like this: if you owe your friend ₹1000 and pay back ₹200 extra today, you'll only pay interest on ₹800 tomorrow. Simple, right? What Exactly is Home Loan Prepayment? Home loan prepayment is simply paying more than your regular EMI towards your loan. It's like giving your loan a boost to finish faster. You can do this in two ways: ● Partial Prepayment: You pay a lump sum amount (like ₹1 lakh from your bonus) while continuing your regular EMIs. This early loan repayment strategy reduces either your EMI amount or loan time. ● Full Prepayment: You pay off the entire remaining loan amount in one go Most banks in India allow partial prepayments without any charges for floating-rate loans. However, some banks may charge a prepayment penalty for fixed-rate loans, usually 2-3% of the prepaid amount. 5 Easy Ways to Prepay Your Home Loan 1. Use Your Annual Bonus Wisely You can think about putting 70-80% of your annual bonus towards your home loan. If you get a ₹2 lakh bonus, using ₹1.5 lakhs for prepayment is one of the smartest ways to save interest on your home loan. You could even save ₹4-5 lakhs over the loan time. Pro tip: Treat your bonus as "found money" and you will not miss it from your regular budget. 2. Step-Up Your EMIs Slowly Many banks offer a step-up EMI facility where your EMI increases by 5-10% every year, matching your salary increases. If your salary increases by ₹10,000 every year, increase your EMI by ₹3,000-5,000. This slow approach makes sure you do not stress your budget while cutting down your loan time by a lot. 3. Use Extra Money and Lump Sums Got money from selling old gold, matured FDs, or tax refunds? Instead of keeping it in a savings account earning 3-4% interest, use it for prepayment. Since home loans usually charge 8-12% interest, you are basically earning a sure return of that percentage by prepaying. Think of prepayment as a sure investment with returns equal to your loan interest rate. That is better than most fixed deposits! 4. Round Up Your EMIs This is among the easiest prepay home loan tips you'll ever follow. If your EMI is ₹28,500, round it up to ₹30,000. That extra ₹1,500 monthly (₹18,000 yearly) can reduce your loan time by 2-3 years and save a lot of interest. The beauty of this method is that the small amount will not affect your lifestyle, but the total impact is huge. 5. Use Tax Savings for Prepayment When you get tax refunds or save money through smart tax planning, put 50% of those savings towards prepayment. If you save ₹50,000 every year through tax planning, using ₹25,000 for prepayment creates a double benefit – tax savings plus interest savings. Smart Timing: When to Prepay The golden rule for any way to reduce home loan interest is to prepay as early as possible in your loan time. Here is why: ● Years 1-5: Maximum impact, as most EMI goes towards interest ● Years 6-10: Good impact, still a lot of interest ● Years 15+: Limited impact, as the principal part is already high Final Thoughts Prepaying your home loan is not about stopping yourself from enjoying life. It is about creating money freedom faster. Start small, be regular, and watch your loan time get shorter while your savings grow. Remember, you do not need to follow all of it at once. Pick one that suits your current money situation and slowly add others as your income grows. Frequently Asked Questions 1. Is there any penalty for prepaying my home loan?Most banks don't charge prepayment penalties for floating-rate home loans. However, fixed-rate loans may have a penalty of 2-3% of the prepaid amount. Always check with your bank before making a prepayment. 2. Should I prepay my home loan or invest in mutual funds?If your loan interest rate is higher than expected investment returns (after tax), prepayment makes sense. For loans above 9-10%, prepayment often gives better returns than market investments. 3. Can I reduce my EMI amount instead of the loan time when I prepay?Yes, most banks offer both options. Reducing time saves more interest in the long run, while reducing EMI gives immediate cash flow relief. Choose based on your current money needs. 4. What's the minimum amount I can prepay?Most banks allow partial prepayments from ₹25,000 onwards, though some may have higher limits. Check with your bank for specific minimum prepayment amounts. 5. How often can I make prepayments?There's usually no limit on prepayment frequency for floating rate loans. You can prepay monthly, quarterly, or whenever you have extra funds available. 6. Do I need to give advance notice for prepayment?Most banks need 15-30 days' advance notice for prepayment. Some banks now offer instant online prepayment facilities through net banking or mobile apps. 7. Will prepayment affect my tax benefits under Section 80C?Prepayment reduces your outstanding principal, which may reduce future tax benefits on interest payments under Section 24. However, the interest savings from prepayment usually beat the lost tax benefits.

28-08-2025

Is a Home Loan Balance Transfer Worth It? A Checklist for Indian Homeowners

Are you paying a high interest rate on your home loan at a time when other banks are offering a better one? Do not worry! You are not tied to the bank that you have taken a loan from; you can transfer the home loan to another bank that offers a better interest rate. Here, we’ll walk you through a home loan balance transfer checklist that can help you make the switch with confidence. Key Takeaways ● Understand when a balance transfer is beneficial and when it's not ● Learn the complete process to transfer a home loan to a new bank ● Calculate the real savings after considering all costs ● Discover insider tips to negotiate better terms with your current lender ● Get a step-by-step action plan for switching lenders Table of Contents What is Home Loan Balance Transfer? When Should You Consider a Home Loan Balance Transfer? A Complete Home Loan Balance Transfer Checklist Hidden Costs when Transferring a Home Loan Steps to Calculate if a Home Loan Balance Transfer is Worth It Home Loan Balance Transfer Process Timelines Final Thoughts FAQs What is Home Loan Balance Transfer? A home loan balance transfer means moving the home loan from one bank to another that offers better benefits. The new bank pays the entire outstanding loan amount to the old bank, and you need to start paying EMI to the new lender. In most cases, even though the paperwork may look meticulous, you can have better savings that will be worth your time. When Should You Consider a Home Loan Balance Transfer? Here are some situations when you can go for a balance transfer: ● When the interest rate differs by 0.5% or more ● Poor customer service experience ● The remaining tenure is long ● The loan amount is substantially higher But do not transfer if you are in the last 3-5 years of your loan tenure, as the savings may not justify the costs involved. A Complete Home Loan Balance Transfer Checklist Here is the home loan balance transfer checklist that you need to make your decision: Financial Assessment is the topmost priority: ● Compare the current interest rate with the new rate offered while considering the balance loan amount and the tenure. ● Make a note of the processing fees or any other fees that may be applicable. ● Verify if there is any pre-payment penalty with your current lender and any legal or technical valuation charges for the new lender. Getting the documentation in place is the next priority: ● Get all the property papers and a No Objection Certificate (NOC) from the society. ● Keep your latest payslips and IT returns. ● Provisional statements and loan repayment records. ● Up-to-date KYC documentation. Evaluate the new lender: ● Check the new lender’s reputation and customer service records. ● Know about the banking network and digital banking facilities offered. ● Do some research and get to know about any hidden charges. ● Understand if you are flexible about EMI dates and the pre-payment options. Keep an eye on the timelines: ● How long will the entire transfer process take? ● Are there any upcoming changes in the interest rates? ● Your job situation during this transition period Hidden Costs when Transferring a Home Loan Many home loan applicants focus on the interest rate differences alone and miss some of the other costs that need to be paid. Here are some of the one-time charges that you need to account for: ● Processing fee, which is usually 0.5 to 1% of the entire loan amount ● Legal and technical evaluation charges, which may be anywhere between Rs. 10,000 and Rs. 15,000. ● Administrative charges, which can be anywhere between Rs. 2,000 and Rs. 5,000 ● Stamp duty charges on the new loan documents. It depends on the state in which you are applying for the loan. Steps to Calculate if a Home Loan Balance Transfer is Worth It Step 1: Calculate the total interest you will pay the current lender. Step 2: Calculate the total cost with the new lender. Include the interest with the new rate, all transfer charges, and any pre-payment penalty. Step 3: Find the difference. If savings exceed ₹2 lakhs over the loan tenure, it is worth considering. Home Loan Balance Transfer Process Timelines Once you decide to transfer your home loan to a new bank, follow the process as per the table. The entire process typically takes 6-8 weeks if all documents are in order. Phase Timeline Key Activities Application Week 1-2 ● Apply to multiple banks for quotes ● Submit all required documents ● Get property valuation done Approval Week 3-4 ● The New bank verifies your documents and property ● Loan sanction letter issued with final terms ● Accept the offer if the terms are satisfactory Legal Process Week 5-6 ● Legal verification of property documents ● NOC from current lender ● Registration of new loan documents Fund Transfer Week 7-8 ● New bank releases funds to old bank ● Outstanding amount is settled ● You start paying EMI to the new bank Final Thoughts If you can save anything more than Rs. 2 lakhs with a tenure of more than 7 years, the current financial institution service is not up to the mark, you have a stable income, and all the documents are handy, then GO for a transfer. If the net savings are less than a lakh with a tenure less than 5 years and you are satisfied with the services offered by the current lender, DO NOT GO for a transfer. If the loan outstanding is between 1 and 2 lakhs and you are having an acceptable service with the current lender, try to negotiate with the same vendor for better interest rates. Frequently Asked Questions Q1. What is a home loan balance transfer? A home loan transfer is moving your existing home loan from one bank to another. Q2. How much can I save through a balance transfer? Savings depend on the rate difference and remaining tenure. Typically, you can save Rs. 2 to Rs. 5 lakhs on a Rs. 50 lakh loan with a 0.5% reduction in the rate of interest. Q3. What charges are involved in transferring my home loan? Processing fees, legal charges, technical valuation, and administrative fees are usually applied for home loan transfers. Q4. How long does the balance transfer process take? In most cases, a balance transfer may take 6-8 weeks if all documents are ready. Q5. Can I negotiate with my current bank instead of transferring? Yes. Show them competitor offers and your repayment history. Many banks reduce rates to retain good customers. Q6. Is it worth transferring if I have only 5 years left on my loan? No. The savings in the remaining tenure may not justify the transfer costs. Calculate carefully before deciding.

26-08-2025

Tips & Advice

RBI's Latest Move: What the New Repo Rate Means for Your Home Loan EMI in 2025

The Reserve Bank of India's (RBI) repo rate decisions have a direct impact on your monthly home loan EMI. That is how it can impact your dream of owning a house. If you are wondering how the latest RBI announcements will affect your finances, you can get clarity here. If you are not sure about the eligibility for government benefits like PMAY CLSS, this guide simplifies it for you. Whether you are looking to book your first home by taking a loan or are someone who has an existing loan and worries about a change in your EMI, we will help you understand what RBI repo rates mean and how they may impact your financial future. Key Takeaways ● Learn how RBI’s repo rate changes impact your home loan interest rate and your EMI. ● Understand if you are eligible for the PMAY CLSS scheme ● Know how to manage any changes in the home loan EMI ● Time your home loan to enjoy the Pradhan Mantri Awas Yojana benefits. Table of Contents What is RBI Repo Rate and Why Is It Important? How Repo Rate Changes Affect Your Home Loan EMI Understanding PMAY CLSS Eligibility 2025 Smart Strategies for Home Buyers in 2025 Final Thoughts Frequently Asked Questions What is RBI Repo Rate and Why is it Important? The Reserve Bank of India lends money to commercial banks at an interest rate, and that is the repo rate. Think of it as a cost to any bank. When this rate changes, banks adjust their lending rates accordingly – and that directly affects your home loan interest rate. Here is why it matters to you: When the repo rate goes down, your home loan interest rate reduces and hence the home loan in itself becomes cheaper. When it goes up, you pay more. If you are planning to buy your first home or are already paying a home loan EMI, a change in the repo rate can either ease or cut into your finances. How Repo Rate Changes Affect Your Home Loan EMI When the RBI decreases the Repo Rate, banks reduce their lending rates. Due to this, your home loan interest rate decreases, which in turn reduces your monthly EMI. When the RBI increases the Repo Rate, banks increase their lending rates. Due to this, your home loan interest rate goes up, which in turn increases your monthly EMI. Most home loans in India are linked to external benchmarks like the repo rate, which means changes happen relatively quickly. In most cases, the changes are imposed within 3 months of an RBI announcement. Understanding Pradhan Mantri Awas Yojana (PMAY) CLSS Eligibility The PMAY Credit-Linked Subsidy Scheme (PMAY-CLSS) continues to help aspiring homeowners with affordable housing. Here's what you need to know: Who Can Apply: ● Middle Income Group 1 (MIG-1): Annual household income between Rs. 6 lakh and Rs. 12 lakh, and the eligible loan amount is Rs. 9,00,000 with interest subsidy of 4% per annum. ● Middle Income Group 2 (MIG-2): Annual household income between Rs. 12 lakh and Rs. 18 lakh, and the eligible loan amount is Rs. 12,00,000 with an interest subsidy of 3% per annum. ● Economically Weaker Section (EWS): Annual household income up to Rs. 3 lakh, and the eligible loan amount is Rs. 6,00,000 with interest subsidy of 6.5% per annum. ● Lower Income Group (LIG): Annual household income between Rs. 3 lakh and Rs. 6 lakh, and the eligible loan amount is Rs. 6,00,000 with interest subsidy of 6.5% per annum. Key Benefits: ● The subsidy is calculated based on the eligible loan amount, and it can be for a loan that goes up to 20 years. ● Direct credit to your loan account, which reduces your total loan outstanding amount ● Discounted Net Present Value (NPV) Rate of 9%, which is one of the best in the industry It works with the existing interest rates in the market, giving relief when the repo rate changes may suddenly increase your burden. Smart Strategies for Home Buyers in 2025 When you are planning to take a home loan: The first thing to do when planning to buy a home by taking a loan is to monitor RBI policy announcements for a favorable timing. You can get pre-approved loans when the rates are low - this can ensure that you save money. Include the Pradhan Mantri Awas Yojana plan when you start looking for a home loan. Consider floating-rate loans if you expect rates to fall further. If you already have a home loan: Firstly, check if your loan is linked to the repo rate or any other external benchmark. You can consider taking a loan through this scheme if you are on an older or higher-interest-rate loan. Go for partial prepayment options when rates are low and review your loan structure annually. Final Thoughts RBI’s monetary policy decisions can have a direct impact on your budget if you are already repaying a home loan or plan to do so in the near future. Keep yourself up-to-date on the repo rate changes and PMAY-CLSS scheme options to make these policies work in your favor. Make informed decisions so that your long-term goals need not be compromised. Frequently Asked Questions Q1. When can the repo rate changes affect my home loan EMI? Most banks announce changes in their home loan interest rates within three months of RBI announcements, so you can expect the same time. Q2. Can I apply for PMAY CLSS in 2025? You can apply for the PMAY CLSS scheme if you are eligible. Check with approved lenders for the latest guidelines and application processes. Q3. Should I choose a fixed or a floating rate during uncertain times?Floating rates offer a better value over a period. Fixed rates can save you the headache of a changing EMI and it will stay constant. Q4. How to calculate Pradhan Mantri Awas Yojana subsidy? The Pradhan Mantri Awas Yojana subsidy is calculated based on the loan amount you are eligible for. Q5. What documents do I need for PMAY CLSS eligibility?Income certificate for all the members of the family, property documents, Aadhaar card, bank statements, and Form 16 are commonly asked for. Some specific requirements may be added by the lender. Q6. Can existing home loan borrowers benefit from PMAY?PMAY-CLSS is primarily for new home loans. However, check with your lender for any possibility of transfer or top-up loan options.

26-08-2025

From Application to Approval in 48 Hours? The Reality of Digital Home Loans

15-09-2025

Guide

A Guide for NRIs: How to Get a Home Loan in India While Living Abroad

15-09-2025

Home Loan

Are Home Loan Rates Negotiable? How to Get the Best Deal From Your Lender

15-09-2025

Tips & Advice

Home Loans for the Self-Employed: How to Ace Your Application in 2025

15-09-2025

Business Loan

Top Business Ideas Under 10 Lakhs Investment

Starting your own business no longer requires crores in investment. With the right planning and execution, launching a profitable business under ₹10 lakhs in India is very much possible, even in today’s competitive market. Whether you are looking to start small or scale later, ₹10 lakhs can open up a variety of lucrative opportunities.For aspiring entrepreneurs with limited capital, getting access to a business loan can help you kickstart or expand these ideas with ease. Here’s a look at some of the best 10 lakh business ideas that offer high potential returns across different industries. Food Truck Business The Indian food industry is booming, and mobile eateries are leading the way in terms of profitability and low overheads.Within this budgeted amount, you can easily set up a fully-equipped food truck serving popular street food, fast food, or regional cuisine. The flexibility of changing locations, relatively low rentals, and increasing demand make this a solid business to start with 10 lakhs. Initial Setup includes: A second-hand or a modified vehicle Kitchen equipment & safety fittings Licenses and registrations Staff hiring & initial inventory Ideal For: Young entrepreneurs, chefs, or foodiesBusiness loan usage: To purchase the vehicle and customise it for kitchen use Boutique or Custom Clothing Store Fashion is an evergreen industry in India. A boutique with unique designs, tailoring services, or ethnic/fusion wear can attract a loyal customer base.This is one of the best business ideas under 10 lakhs, especially in metros and tier-2 cities where fashion-conscious consumers are always seeking something different.Costs Typically Cover: Rent & interior décor Inventory and fabric sourcing Hiring tailors/designers Marketing & branding Niche Ideas include: Bridal boutique Kidswear store Sustainable/fabric-specific clothing Business loan usage: For store setup, initial working capital and inventory ✔️ Franchise Business Under 10 Lakhs Owning a franchise can be a great shortcut to profitability because of the existing brand recognition and business model.Many well-known brands offer franchise businesses under 10 lakhs in sectors like fast food, education, beauty, and delivery services.Popular Options Include: Food & beverage chains (chai cafés, dessert outlets) Preschool or daycare franchises Courier & logistics franchises Salon & grooming services Benefits: Established training & support Ready customer base Standardised operations Business loan usage: To pay franchise fees and operational setup costs Cloud Kitchen A cloud kitchen operates entirely online, preparing food for delivery without a dine-in facility. It’s a smart way to reduce overheads and reach more customers through food delivery apps.This is among the smartest business ideas under 10 lakhs, especially post-pandemic, when digital food ordering became the norm.Investment Breakdown: Kitchen space rent & setup Cooking equipment Packaging supplies Online branding & marketing Pro Tip: Choose a cuisine with high demand and low food costs, such as biryani, combos, or desserts.Business loan usage: For equipment, working capital and initial marketing Mobile or Laptop Repair Shop With millions of smartphone and laptop users across India, repair services are in high demand. Starting a small tech repair centre can be one of the most practical business ideas for 10 lakh today.Key Expenses Include: Renting a commercial space Buying diagnostic and repair tools Sourcing spare parts Training (if needed) You Can Also Offer: Buyback services Accessory sales Home service for premium clients Business loan usage: To buy tools, hire technicians and stock spare parts Digital Marketing Agency Every small business today wants an online presence. If you have digital marketing skills or can hire a small team, setting up your own agency is one of the smartest business ideas under 10 lakhs.Services You Can Offer: Social media marketing Website development SEO and paid ads Content creation Content/ Creative writing What You Need: Office setup (optional, can be remote) Laptops & software tools Skilled team/freelancers Basic marketing budget Business loan usage: To invest in software licenses, team salaries and marketing Paper Bag or Eco Packaging Unit As sustainability grows in importance, starting an eco-friendly packaging business is both profitable and socially impactful.With ₹10 lakhs, you can start a small paper bag manufacturing unit or create compostable food containers for restaurants and local businesses.Setup Includes: Machinery for cutting, folding & printing Raw material procurement Labour & logistics Local marketing This is an ideal business that requires no investment in retail space, as it can be operated from a small warehouse or rented unit.Business loan usage: For machinery purchase and raw material stocking Fitness Studio or Zumba Classes If you’re into fitness, setting up a boutique studio for group classes like yoga, Zumba, pilates, or even martial arts is a growing trend, especially in urban neighbourhoods.Required Investment Covers: Renting space Equipment (mats, weights, sound system) Instructor certifications Branding & social media marketing Add-On Services: Personal training Fitness merchandise Nutritional counselling Business loan usage: For equipment, interiors and pre-launch promotions Pet Grooming Services Pet care is a booming market in India. Opening a small pet grooming centre or offering mobile grooming services is both rewarding and profitable.You Will Need: Basic grooming equipment Trained staff or certification Portable setup (for mobile services) Insurance & licenses Extra Income Streams: Pet accessories Organic pet food Pet sitting or boarding services Business loan usage: For mobile van setup or renting a grooming space Turn Your Business Idea Into Reality You don’t need massive capital to build a successful venture. These business ideas offer flexibility, growth potential and adaptability for new-age entrepreneurs. Whether you're planning a franchise business under 10 lakhs or exploring a niche market with a business without investment in physical space, the options are diverse and within reach.If you're ready to begin but need help with funding, a business loan can provide the necessary boost to get started without draining your savings. It enables you to manage setup costs, inventory, and early-stage operations more efficiently, allowing you to focus on growth.Starting a business with ₹10 lakhs is not just possible, it can be highly profitable when backed by smart planning and the right financial support.

11-09-2025

Business Loan

Profitable Business Ideas Under 5 Lakhs in India

Starting your own business doesn’t always require a massive investment. With careful planning and the right approach, you can launch a profitable venture even with a modest budget. If you’re looking for business ideas under ₹5 lakhs, several options across various industries offer low setup costs and high growth potential. Whether you are looking to become self-employed or want to create a scalable model, here’s a curated list of 5 lakh investment business ideas that can help you take the first step towards entrepreneurship. Food and Beverage Business The food industry in India is always booming, making it an excellent option for anyone who loves cooking or serving. Even with limited capital, you can start small and expand gradually. Popular options include: Cloud Kitchen - Run a delivery-only restaurant from home or a rented kitchen space without investing in a dining area. Food Truck - A mobile kitchen offering street food, snacks, or beverages is trendy and profitable. Bakery or Dessert Shop - With rising demand for customised cakes and pastries, this niche is skyrocketing. Home Bakery - You can begin by baking at home and selling in batches to generate a source of revenue. These businesses require minimal space and equipment, making them ideal for a start-up under 5 lakhs. Retail and Franchise Outlets Franchising is an easy way to start a business without building a brand from scratch. With an investment of ₹3–5 lakhs, you can open small outlets like quick-service restaurants, pharmacies, or stationery and gift shops. These options provide ready-made branding, training, and operational support, reducing the risk for first-time entrepreneurs. This model is ideal for those who want to leverage an established brand’s reputation while focusing on day-to-day management and growth, making it one of the most practical business ideas under 5 lakhs. E-commerce or Online Business Thanks to digital platforms, selling products online has never been easier. With limited upfront costs, you can create an online store and reach a wider audience. E-commerce is a cost-effective way to start a business under ₹5 lakhs. With minimal setup, you can launch an online store and sell products like customised merchandise, handmade goods, or even opt for dropshipping, where suppliers handle inventory and shipping. Leveraging social media and digital marketing can help you quickly reach a wider audience. This flexible and scalable model is ideal for new entrepreneurs looking to tap into India’s growing online shopping market without heavy infrastructure costs. Freelancing and Professional Services Freelancing is one of the most budget-friendly business ideas under ₹5 lakhs, especially for skilled professionals. You can offer services like content writing, digital marketing, photography, videography, or even legal and financial consultancy. These ventures require minimal setup; often just a laptop and internet connection, and rely more on your expertise than significant capital. They’re ideal for individuals looking to work independently, with the flexibility to scale over time based on demand and specialisation. Education and Training Services Education is a sector that continues to grow rapidly in India, creating opportunities for entrepreneurs to start small yet impactful businesses.Education remains a thriving sector, offering lucrative opportunities for businesses under ₹5 lakhs, given the growing demand for learning and skill development in India. You can start coaching or tuition classes for school and competitive exams, offer online courses, or conduct workshops on skills like coding, language learning, or public speaking. With minimal investment in basic infrastructure or digital tools, this sector allows you to operate from home or a small rented space. It’s ideal for professionals or subject experts who want to leverage their knowledge, provide value to learners, and build a steady income stream with high scalability. Health, Fitness, and Wellness With a growing focus on health and fitness, small-scale wellness businesses are seeing significant demand. The health and wellness industry is thriving, making it an excellent option for businesses under ₹5 lakhs. You can start yoga or fitness classes online or in a small studio, offer diet and nutrition consultancy, or sell home-based organic products like herbal skincare and organic foods. These ventures require minimal setup costs and attract a steady, recurring clientele as more people focus on healthy living. With rising awareness about fitness and natural products, this sector offers high growth potential and is perfect for entrepreneurs passionate about health and lifestyle improvement. Event Planning and Management Event management has become a thriving sector with opportunities in both personal and corporate events. Event planning is a fast-growing sector with lucrative opportunities in both individual and corporate spaces. With an investment under ₹5 lakhs, you can offer services like birthday and small event planning, corporate event coordination, or wedding support services such as décor, logistics, and photography. This business requires minimal infrastructure since most resources can be rented, and it can be managed with a small team. Its flexible model, low entry cost, and high demand make it an excellent option for new entrepreneurs looking to build a creative, client-focused venture. Building a Profitable Business with Limited Capital Starting a business under 5 lakhs is not just possible but also practical in today’s entrepreneurial landscape. With options ranging from service-based ventures to scalable online companies, success depends more on strategic planning, creativity, and consistent effort than on heavy investment. By leveraging your skills, understanding market demand, and starting with a lean approach, supported by an affordable business loan if required, you can minimise risks while building a strong foundation. Over time, even a modest investment business idea can evolve into a profitable and sustainable enterprise, paving the way for long-term entrepreneurial growth.

11-09-2025

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Your one stop place for everything related to finance and lending

Trending articles

Benefits Of Taking A Joint Home Loan

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From Application to Approval in 48 Hours? The Reality of Digital Home Loans

A Guide for NRIs: How to Get a Home Loan in India While Living Abroad

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Profitable Business Ideas Under 5 Lakhs in India