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Tips & Advice

Tips To Repay Your Home Loan Faster

Now that you have taken a home loan, chances are that you could be worried about the home loan EMI. After all, taking a home loan plan is not enough. Besides having the financial commitment to make regular EMI payments, you must also have a suitable financial plan to repay your home loan as soon as possible. To help you decide on a fast home loan repayment, here are the best home loan tips: 1. Increase your down payment: The first of the home loan tips is to make a higher down payment. This will lessen the total dues or the overall loan amount. A reduced home loan EMI payment can mean faster repayments. Experts often suggest making a downpayment between 20% and 30% of the total loan amount. 2. Select a home loan plan with lower interest rates: Before you select the best home loan plan, always try to find a lender with a low interest rate. This will ensure that the financial burden of your home loan EMI is considerably reduced. If you have already taken a home loan plan with a higher interest rate, consider changing it or refinancing it through the balance transfer option with a low-interest home loan provider. 3. Opt to pay higher EMIs: Want to repay a home loan quickly? Select to pay higher EMIs. However, paying a higher loan EMI might not sound like the best idea in the short term. Market experts often suggest this as among the best home loan tips to reduce your debt burden swiftly. Of course, you are paying more now, but doesn’t this mean your debt burden is getting reduced faster? 4. Select to pay shorter loan tenures: This is also among the basic home loan tips to ensure you pay the EMI immediately. By selecting a shorter tenure, you can quickly reduce your debt burden. Remember, a shorter tenure reduces your financial obligation by reducing the overall interest rate. Once you finish your home loan EMI payments speedily, you can also take a fresh loan for any other requirement. Repaying your home loan faster will also enhance your credit score. 5. Think seriously about making part prepayment of your home loan: A home loan plan always allows you to make a part prepayment. If you have not given much thought to this aspect of a home loan, you should do it immediately. Suppose you have taken a home loan plan and choose to make a part prepayment; it will mean that your overall outstanding home loan amount will decrease. This, in turn, means reduced home loan EMIs. Now that your home loan EMI has decreased, won’t you be able to pay them faster? No wonder that market experts say that making part prepayments is among the best home loan tips. 6. Never miss your home loan EMI payments: Once you get a home loan plan, you should never default on your EMI payments. This will adversely affect your credit score and result in the imposition of penalties and fines. Sticking to the regular payment schedule is among the best home loan tips for becoming debt-free quickly. 7. Use your right to get tax exemptions promptly: Did you know that a home loan plan also allows you to receive tax exemptions? Yes, you heard that right. Depending upon your eligibility, you can get exemptions under Sections 80C, 24(b) and 80EE of the Income Tax Act. Consult a tax advisor or carefully review the exemptions and refunds sections in the Income Tax Act. And once you get a refund, use the amount wisely. This will ensure that you can repay home loans quickly and hassle-free. 8. Rent your house: The last among the home loan tips is to rent out a part of your purchased or built house/flat. This would mean a steady and regular income to meet your home loan EMI obligations. [B-02] The Bottom Line Keeping informed about tips to repay the home loan faster can make the crucial difference between financial well-being and a financial crisis. If you have taken a home loan plan, pay attention to each and every aspect of your home loan, including your home loan EMIs.

08-11-2023

Guide

Instalment Loans: Is It the Right Financing Option for You?

Most of you have come across the term- instalment loan while searching for various loan options. You might have heard it through a bank or other financial institution or on the Internet. Instalment loans are regarded as a professional loan with good options for funding. [B-01] What Is An Instalment Loan? An Instalment loan is a loan option that permits you to borrow money by repaying the principal amount along with interest over a while. The duration of the loan, the principal amount to be paid, and the borrower and lender agree upon the interest amount. You pay the amount due in a set number of scheduled payments. In the case of Instalment loans, you immediately receive the amount you have borrowed without any delay. Some options available for Instalment loans include student loans, mortgage loans, auto loans, business loans, and personal loans. How To Apply For Instalment Loan? Due to the different types of Instalment loans, the application process for each type of loan will vary. In the case of an online Instalment loan for business, you will have to fill out some forms and get your loan approved in a few days. This might not be so easy in the case of construction loans. Both personal and business information is required to get yourself an Instalment loan. Apart from some financial documents, you will be asked for your recent credit report along with how much your business earns every month. Benefits Of Instalment Loans There are numerous benefits of undertaking the option of Instalment loans you must know about. From monthly payments to big purchases, opting for this loan option will work wonders for your business. Feel Free To Pay Off Your Loan before Planned In the case of an Instalment loan, you are liable to pay off the principal amount and the amount of interest every month or on the agreed-upon period. But, if you can afford to pay the total amount of the loan, well and good. The bank or any other financial institution you have opted for the loan from will not ask for any additional charges. Also, before going for the loan, make sure to clear the topic of early repayments with your lender. This is because some lenders ask for early repayment fees. So, to avoid such a situation, it is best to talk about the same. No One Can Stop You From Making Massive Purchases You are bound to get your hands on a large lump sum by going for Instalment loans. The auto loan helps you purchase a car. All you have to do is put the vehicle purchased as collateral to avail of this loan. A student loan can offer similar benefits as it specializes in covering your study expenses for you. In case of a mortgage loan, you can buy a home. You must pay back in small amounts for up to the next 15 to 30 years. A personal loan can be taken to avail of some large-term purchases you are looking for. The Monthly Payments Remain Constant Once you go for an Instalment loan for business, the monthly payment you have to make will be constant throughout the payment term. There will be no increase or decrease in the amount by the lender until and unless you ask for a loan restructuring from the lender. This will also help you plan your budget by taking the same amount from your funds monthly. Flexibility And No Pressure In Paying Off A Loan Since you have to pay only a tiny percentage of the loan amount every month or during the agreed-upon time, there is no space for feeling overwhelmed or pressured. Enjoy The Benefit Of Better Interest Rates If You Have A Good Credit Score If your credit score is good, you can go for Instalment loans with better and far more acceptable rates of interest. So, having a potential credit score is crucial. Also, the loan amount you have borrowed will not seem as huge if you have to pay an acceptable amount of interest throughout the duration. Helps Build Your Credit By taking an Instalment loan, you will get the benefit of boosting your credit in no time. If you repay your loan amount on time, your credit score will soar to great heights without any issue. Opting for Instalment loans is better than going for payday loans, as payday loans do not help build your credit score. [B-02] The Bottom Line By going for an Instalment loan, you will enjoy the flexibility of time and the amount to be paid. Since you will have to pay a small amount every month or according to your agreed-upon duration, you can easily make payments.

08-11-2023

Reasons Why Unsecured Business Loans is Popular in India

Small businesses are the backbone of any economy. They create jobs, drive innovation, and contribute to the country’s overall growth. In India, small businesses have played a crucial role in the development of the economy. Despite this, many small businesses face difficulties in getting access to capital. This is where unsecured business loans come into play. These loans are becoming increasingly popular in India due to their easy eligibility criteria and low-interest rates. In this blog post, we will discuss the reasons why unsecured business loans have become so popular in India. Let’s take a look at these reasons. [B-01] Helps in Overcoming Transient Business Disturbances Unsecured business loans have become popular in India as they help businesses overcome transient disturbances. For example, if a small business faces a short-term cash crunch due to delayed customer payments, it can take an unsecured loan to tide over the situation. These loans are also useful for businesses that need working capital to take advantage of opportunities such as a sudden increase in demand for their products or services. Quicker Loan Approval and Money Disbursement One of the key reasons why unsecured business loans have become popular in India is that they are approved and disbursed much faster than secured business loans. This is because when applying for a secured loan, you must first pledge an asset as collateral which can slow down the entire process. However, with an unsecured loan, there is no need for collateral, making the approval and disbursement process quicker. Moreover, the capital loan interest rates are also lower than secured loans. Flexible Repayment Options One of the reasons why unsecured business loans have become popular in India is because of the flexible repayment options that they offer. Secured business loans usually have to be repaid within a fixed period, but you can choose how long you want to take to repay the loan with an unsecured loan. This gives you much more flexibility in managing your cash flow. With secured business loans, the interest rate is often fixed, which means that you could pay more than necessary if market rates increase. However, with an unsecured loan, the interest rate is variable, so you can take advantage of lower interest rates if they become available. Easy Application One of the primary reasons secured business loans have become popular in India is that they are very easy to apply for. You can usually apply online in just a few minutes, and you will often get a decision within 24 hours. This makes secured business loans ideal for businesses that need access to capital quickly. Another reason secured business loans have become popular in India is that they can be used for various purposes. For example, you can use a secured business loan to finance equipment purchases, expand your premises, or hire new staff. This flexibility means that secured business loans can be tailored to meet the specific needs of your business. Business-Friendly Terms & Conditions One of the primary reasons secured business loans have become popular in India is the fact that these come with business-friendly terms and conditions. For instance, a secured business loan can be availed for a tenure of up to 15 years, which gives businesses sufficient time to repay the loan without any financial strain. Moreover, secured business loans also offer competitive interest rates, making them an attractive financing option. No Shared Ownership The most common reason people go for unsecured business loans is that it doesn’t require any collateral. When you take a secured loan, the lender can ask for your business assets as collateral if you default on the loan. This is not the case with unsecured loans, making them a much safer option, especially for small businesses. Besides this, unsecured business loans are quick and easy to get. Unlike secured loans, which can take weeks or even months, unsecured business loans can be approved in just a few days. This makes them ideal for businesses that need cash fast. So if you’re looking for a business loan and don’t want to put up your assets as collateral, then an unsecured business loan is the way to go. How to Get a Business Loan in India? Here are the steps on how to get a business loan in India: Research the different types of business loans available. Find out which type of loan best suits your business needs. Compare interest rates and terms from different lenders. Apply for the loan with the lender of your choice. Provide the required documents. Wait for loan approval. Use the loan amount to grow your business. [B-02] The Bottom Line For small business owners in India, unsecured business loans have become a popular funding source. There are several reasons for this, including that secured loans often require collateral, which many small businesses do not have. In addition, unsecured loans tend to have lower interest rates than secured loans, making them more affordable for small businesses. Finally, unsecured loans can be easier to qualify for than secured loans, making them a good option for businesses that may not meet the criteria for a secured loan. We hope that you’ve understood how to apply for a small business loan.

08-11-2023

Tips & Advice

Why Should You Choose A Home Loan Balance Transfer?

A Home loan balance transfer refers to the transfer of your current home loan from one bank/lender to another to lower your EMI by availing a lower interest rate and other benefits offered by them. Higher interest rates impact finances directly and can deter your monetary growth. In such circumstances, opting for a Home Loan balance transfer can help save a lot of money. With the recent dip in interest rates, the home loan interest rates have dropped to an all-time low. Are you still paying home loan EMI on the previous rate? It’s time you should consider a home loan balance transfer. Requirements for Balance Transfer A few things that you need to ensure before proceeding with a balance transfer are: Your remaining repayment period exceeds five years. Check if you have any prepayment penalties to pay. According to RBI guidelines, banks should not levy fines for loan foreclosure. You have no history of defaults on EMI payments with the existing loan and have a good credit rating. You have all the documents related to the property ready. The Balance Transfer Process – How it Works? You may consider a home loan balance transfer to a bank or other lender offering a lower interest rate if you’re currently paying a higher interest rate. The Process Steps: For the transfer process initiation, you need to go through the documentation process as described below: Apply to the existing bank requesting a transfer of the balance loan amount. Apply to the bank/lender you have chosen to transfer your balance loan. Once the new bank/ lender approves your application, the outstanding balance will be paid to your existing bank in full. On receiving the outstanding amount, the existing bank will hand over the property documents and issue a clearance certificate to you. You now need to submit all these documents to the new bank. Finally, the outstanding loan amount of your existing home loan has been transferred to the new bank/ lender, and you will henceforth pay the EMIs to the new bank. The home loan transfer process is now complete. The Benefits of Home Loan Balance Transfer There are numerous benefits associated with a home loan balance transfer, as listed below: Reduction in the Interest Rate & EMI: The main reason for opting for a home loan balance transfer is the reduction in the interest rate. It also helps to reduce your EMI, which can save you a good amount of money. Better Loan Terms: Banks/lenders usually vary with the terms that they offer for the loan provided. Sometimes, it so happens that you might have settled for a home loan in a hurry with terms not suitable to you; in such a scenario, you can consider a transfer with lenders offering better terms. Foreclosure and Prepayment Charges: Foreclosure and prepayment charges are the two important charges associated with home loans that lenders often charge you. Although RBI in 2012 lifted foreclosure charges on home loans that are on the floating interest rate, charges apply to home loans at a fixed interest rate. But you can consider a transfer if you have taken a loan at a floating interest rate. All these factors must be considered during the cost-benefit analysis before a home loan balance transfer. Top-up loan: An added benefit is the top-up loan facility. When opting for a balance transfer, you are entitled to an additional amount as a top-up amount in addition to your outstanding amount. [B-02] Key Points Most lenders nowadays offer a home loan balance transfer, and they try to lure customers with various attractive offers and interest rates. Read the terms and conditions of the new bank properly to avoid any hidden expenses. You should also be very cautious, consider all pros and cons, and conduct a cost-benefit analysis before proceeding. Visit our site to apply for the balance transfer from your existing loan to one with Piramal Finance.

08-11-2023

How To?

How To Get A Business License?

A business license is a legally sanctioned document required to run a business within a particular regional boundary. One has to legally register their business with the State Licensing Organization. Obtaining your business license is crucial, whether it is a small business license or one of a corporation. The first thing one should set up their small business with is a business license. By registering your business, you will be able to go hand-in-hand with the central as well as star guidelines. Also, every nation has made it necessary for all businesses to obtain a business license. This will ensure that every established business complies with the rules and regulations concerning the business’ environmental issues. Registering for a business license can get you avail of business loans. [B-01] How To Obtain A Business License? Every nation goes by certain rules and regulations that they have to follow in order to get their small business license. The requirements, as well as the amount spent on getting your business licensed, depend on the location of your business, business tasks, and rules prescribed by the government. If you want to learn how to obtain a license and other permits for your small business, we have mentioned the way how you can get one. Choose the location of your business firm Select the structure of your business Choose an appropriate name for your firm Register your business with the State Licensing Organization Get access to your federal as well as state tax ID numbers Apply for the licenses and permits Documents Required For Obtaining Your Business License There are specific documents required for the registration of your business legally. The documents you have to submit in order to acquire licenses that will work for small business loans too are: Government-issued identity containing your address Driving License PAN Card Bank Statement Address Proof Passport Residence Card Residential Proof Electricity Bill/ Mobile Bill/ Telephone Bill Registered Office Proof The registered document of the business establishment of the registered office in the name of the company. The registered copy of the agreement in the name of the company along with the receipt of rent paid. These should not be older than a period of 30 days. Importance Of Business License Registration In India Obtaining a business license grants you permission to legally run your business under the jurisdiction of the nation. A business license helps in enhancing the name of the business owner in many ways. It has a positive impact on the employees, customers as well as stakeholders of the business by greeting them with confidence. A legal business license also guarantees that the goods and services offered by their firm are legally saturated and trustworthy. A business license also adds to the profitability and prosperity of the business. It helps in collecting extra revenue, examining whether the firms are operating efficiently, and managing the various restrictions faced. It also gives the business an upper hand as a competitive lead as they will be able to lead with the proof of bearing a legal license during any debates. Some of the additional benefits of obtaining a business license are: Ensures Legal Protection Applying for a business license ensures your business ticks off the criteria for all legal requirements. Since your business complies with the necessary needs, it is safe to say that you will be legally protected. Guarantees Foreign Trading With Ease Since you will be the holder of a legally issued document, it will be easy for you to conduct business with foreign affairs too. Engaging in business with new markets will become a comparatively easy job than it was before. A much more convenient and cheap way of expanding your firm is through a process called Manufacturing Under License. In this process, if you are the owner of a good or service which bears a patent, copyright, or trademark, you will be given limited foreign rights. These rights will involve producing and selling your commodities or services with foreign markets. Acquiring Business Loans Will Become Simpler Since you will have steady and legal paperwork concerning your business, you do not have to face any additional issues in signing up for an MSME loan. Getting hold of small business loans will be comparatively easier than before. A business license will ensure speedy approval of loans since you already will be in possession of all the requirements. [B-02] The Bottom Line By obtaining a business license for your firm, you will be doing yourself as well as the entire organization a huge favor. From getting legal protection to ensuring fast approval of small business loans, a license will help you go by the central as well as state guidelines. This will also make sure that you can engage more easily in foreign trade.

08-11-2023

General Insurance

Insurance Age Limits For Term Policy

Life insurance is a financial product that has remained relevant since the need for securing one’s life was felt by individuals. However, there is much confusion about the right life insurance age limit. Several myths also abound! It is important to check the facts well before proceeding buying one. Moreover, it is vital to understand the difference between full life insurance and term life cover to obtain the right type of protection. Sure, the term life insurance is deemed beneficial for young individuals just embarking on their careers, but the truth differs somewhat. Yes! There is a specific minimum and maximum related to the term insurance age limit. While the minimum age is obvious as the insured person is required to be 18 to be eligible for it, the maximum age is up to 65 years. The coverage extends to 99 years of age, which can be safely assumed to be for a lifetime. An Indian citizen is welcome to go through the various notifications related to life insurance published by the Reserve Bank of India to be capable of making an informed decision. Certain aspects that require careful consideration before buying a term insurance coverage should not be based solely on the maximum life insurance age limit. It helps to note the following facts: [B-01] Deciding the Tenure based on term insurance age limit A term life insurance plan is usually bought as a replacement for an individual’s income after their death. It is a good idea to buy the policy for a specified number of years until retirement. This may indicate up to 55 or 60 years of age or slightly more. Insurance advisors recommend taking cover until the age of 60 or 65. Buying the plan at 50 for 15 to 20 years or when one reaches the life insurance age limit is likely to be a waste. Another aspect that needs to be considered is one’s health. Many insurance companies deny selling term insurance to individuals with serious ailments. Benefits of buying well before the term insurance age limit An individual in their 20s or 30s may put off buying life insurance coverage until after acquiring a family. This is, however, a misjudgement. It is best to begin planning for the future as soon as one begins earning. Waiting for too long may result in delaying the action even further. The notion of deciding that there is plenty of time after checking the life insurance age limit would be foolhardy. The prospective insurance buyer must know that term insurance is not only about financial security. On the contrary, it provides one with additional income after a specified period is completed. Other benefits that one can look forward to by buying the right term insurance cover at a young age include: Low premium rate The remote possibility of rejection Assurance of independent financial security The flexibility of adding extra benefits as Riders Tax saving Benefits of buying when one nears the term insurance age limit True, many Indians wake up to buying life insurance when they are on the verge of retirement. With health conditions being compromised and a lack of money apparent, the possibility of buying term insurance seems bright. Do seniors get a good deal by spending a hefty sum on an insurance plan? Well, this is not a million-dollar question, either. Connecting with a reputed insurance company or an independent agent can help the senior individual get the right answers. Investing in a term insurance plan is possible for individuals 60 or older. While all insurance companies are willing to sell the policy until the prospective insurer crosses the life insurance age limit, one must be prepared to pay a lot more as a premium. Moreover, the concerned individual would have to undergo an extensive medical check-up to negate the pre-existing conditions that aggravate risk factors. Last but not least, seniors may find the sum assured to be much less than those provided to young and healthy individuals. Despite the negatives, most seniors find the term insurance a godsend, especially when they are eager to provide for their dependents. It is best to check the products offered by Life Insurance Corporation of India before moving on to private insurance companies offering similar insurance policies. Factors to note when buying term insurance within the term insurance age limit It is important to buy the policy as early as possible. This will allow one to pay lower premiums. Paying a lump sum is not advisable. Instead, one should opt for a plan that allows regular premium payment. This is an excellent financial planning move. Sure, there are multiple riders available with all term insurance policies. However, it is important to understand that each rider is available as a single investment plan and is payable before the life insurance age limit is reached. Selecting the most expensive term plan with riders is a strict no-no. Trying to hide an existing health condition is not advisable. The problem is sure to surface during medical examination, and the bond of trust between the carrier and insured person is lost. Simultaneously purchasing multiple policies will not be helpful. Having a maximum of two ongoing policies is enough! More is not necessarily better, and you may end up hindering your financial planning or fulfillment of obligations. It is important to plan and decide on a relatively big insurance cover. A small cover will not help one financially during times of crisis. A larger sum can provide the due assistance to the family when needed. It is recommended to shop for an insurance product and go with one of the best brands providing term insurance coverage for youngsters and seniors. [B-02] Conclusion Opting for a suitable term insurance policy before reaching the life insurance age limit is vital to obtain peace of mind post-retirement. Checking the associated facts is essential before making the final decision and signing on the dotted line. If you need financial guidance and assistance before buying a term insurance plan as an investment, visit Piramal Finance. This online platform helps learn everything about relevant developments in the world of finance, including personal loan, credit cards, and financial management.

08-11-2023

Funding for small businesses, how the options work

There is a lot that goes into starting and running a small business. From taking the first steps in the world of businesses to managing day-to-day needs, your small business needs a steady source of funds for many reasons. However, you do not need to dip into your savings to meet the expenses. You have the following funding options to help you out. [B-01] #1 Online loans from non-banking institutions You no longer need to visit an actual bank to get the money needed for your business. Non-banking financial institutions have made it easier to apply for small business loans online. Loan amount, interest rates, repayment tenure, and additional charges vary from one lender to another. However, a common factor is that you’re generally allowed to use the money as you want. So, you can consolidate your debts, buy equipment, or expand overseas using the loan amount. Benefits A faster way to secure the funds The process of pre-approval is usually available Lenient requirements to qualify #2 Business line of credit If you go for a business line of credit, you can borrow money from time to time as per your business needs. When you just want a fixed source of capital and can’t exactly spell out a figure your business needs, establish a line of credit. It works like a credit card – you borrow money up to the credit limit of the account. Then, you repay the amount and you can borrow again. Benefits The flexibility of borrowing multiple times from one credit line Helps in establishing business credit The interest is levied only on the amount used by a business #3 Business Credit Cards Business credit cards are easy to avail of if your credit scores are good enough. There are not too many complicated qualification criteria in this case of business financing. The only issue with a business credit card is that it typically comes with a higher rate of interest. However, you can bring down the interest rate to some extent if the personal credit scores are high. Benefits Helpful in establishing business credit Earning cash back or rewards on spending No interest to be paid if the statement balance is paid on time #4 Small business grants Small business grants are particularly lucrative to business owners because they do not need to pay the money back. Also, they do not have to give up shares in the company or pledge any collateral. In all true sense, small business grants are free money. But the biggest issue is that small business grants are not that easy to get. Too many other businesses will be vying for the same grant as yours. Benefits No monthly payment to consider No need to offer business equity for the investment No need to repay the funds given to the business #5 Working capital loans Another business loan that applies online is a working capital loan. Small businesses take this loan to meet their short-term requirements of liquid cash. Maybe you want to expand your business, offer a new product or service, or buy new equipment. A working capital loan is taken to meet all these expenses that are mainly related to running the day-to-day business operations. These are typically short-term loans, though you can talk to the lender if you want to extend the tenure. Benefits Easier to secure for a business running for a few years Available at affordable interest rates for some lenders Can be applied online for the loan #6 Invoice factoring If your business is involved in offering products or services to other companies, you can try invoice factoring to get the funds. In this case, you will be selling the outstanding invoices to a third party. This third party gets you the money right away in exchange for your invoices. They collect payments from the customers of your business, and you get the rest of the balance after their fee is deducted. Benefits Lenient funding qualifications The flexibility of using the funds Getting access to funds in a short time #7 Crowdfunding In the case of crowdfunding, you pitch your ideas to a group of investors online. If they like your idea, they offer the funds needed for your business. The crowdfunding sites for small businesses have a group of financing individuals to let your ideas reach out to different investors on different platforms. It can be debt crowdfunding where you need to pay the amount back. Or, it can be equity crowdfunding where you are seeking investors. [B-02] Benefits Low financial risks in most cases A way to test business viability in the market Building brand awareness and getting customers’ attention The funding option you choose is based on your preference, convenience, and monetary needs. However, regardless of the option you choose, make sure to check the lender for authenticity and reliability.

08-11-2023

Guide

Home Improvement Loans: Everything You Need to Know About

Transforming your home into a more lively and elegant living space is a dream for all. Who does not like to modify their living spaces into something worth coming back to every single day? Nothing is better than having your home reflect your personality and style. For this, renovating and refurbishing your house is the perfect option to go for. But completely modifying and rebuilding your house’s aesthetics requires huge amounts of funds. It becomes difficult to save enough money in a short period of time if you wish to renovate your house. So, to help ease off things for you, going for a house improvement loan will be the best option to opt for. [B-01] What Is A Home Improvement Loan? A home improvement or renovation loan is the type of loan one can avail of when they wish to renovate, modify or refurbish their house. It is different from a home loan. While a home loan allows you to purchase a house, a house improvement loan helps you improve and modify your existing home. This loan helps modify your home at really low and reasonable costs. It is a flexible and hassle-free means of transforming your home into a comfortable and elegant living space. Types Of Home Improvement Loan There are two types of home improvement loans- secured home improvement loans and unsecured home improvement loans. Secured Home Improvement Loan This type of new home renovation loan is also known as a second mortgage loan as it keeps your house as a guarantee or collateral. You will be granted higher loan amounts by going for this type of home improvement loan. The interest rate on this loan amount will be fixed and tax-deductible, depending on factors like your age, health, size of your house, credit rating, and location. You will have to repay in 10 to 15 years. Unsecured Home Improvement Loan This type of loan is riskier for the lender as it does not involve keeping the home as collateral. The rate of interest charged on this small loan amount is high, and the loan needs to be repaid in less than ten years. Your credit history is a huge factor in determining this loan, and the rate of interest is not tax-deductible. Benefits Of A Home Improvement Loan Applying for house renovation finance can help you fulfill your life-long wish of living in your dream home. It helps you spruce up your apartment and make it a place worth coming back to every day. A home improvement loan covers all the costs needed to modify as well as refurbish your house, making it all new and sparkly. Some of the other benefits you will enjoy by applying for a house improvement loan are: Lower Rates Of Interest Many people go for personal loans to renovate their homes even if the rates of interest are high. A home improvement loan has been introduced to help them save a buck load of money. This loan charges lower rates of interest than other types of loans. Speedy Processing It takes comparatively lesser time to process a home improvement loan. This is because only a handful of documents are required to approve this loan. The documents required are: Application form filled properly Last six months’ bank statements Identity proof Income proof Residence proof Employment proof Photographs The original title deed of your property A cheque for the processing fee Architect’s/ Engineer’s estimate of the renovation No-encumbrance certificate Tax Benefits Applying for a new home renovation loan can help you enjoy tax benefits on the interest paid. According to Section 24, an amount up to Rs. 30,000 can be deducted annually against the interest paid on the amount of loan borrowed. Pros And Cons Of A Home Improvement Loan Pros Renovating your house properly can increase the market value of your house, making it more attractive and desirable to other people. So, a home improvement loan that helps in making repairs and upgrades to your property can be beneficial. A home improvement loan can increase the value of your home at such a speedy rate that your house will be eligible to pay for itself. By going for this loan, you will not have to save enough money to bring about urgent repairs to your house. You can immediately leap onto it and save your house’s condition from worsening. Cons Hiring inadequate workers to renovate your house can make the loan go down the drain as your home value will deteriorate. Due to the fluctuating economy, interest rates can increase in the long run. This can make you spend more on the house in the future than you wanted to. [B-02] Make sure to read this article until the very end, as we have provided all the information that is to be known about home improvement loans.

08-11-2023

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Why It Is Important To Keep Reviewing Your Home Loan?

Buying a home comes with a lot of financial burden and responsibilities, which, however, is worth every penny you spend behind your cost niche. Home loans come with low interest rates and a duration that you can choose based on your age and other considerations. However, often a mistake that home buyers make is continuing with the payment of home loan EMI or installment amount without even checking or reviewing the amount remaining for years on end. It is crucial that you do so, not only for the sake of budgeting but also for other important reasons that might benefit your pocket. Read on to learn why you should keep reviewing your home loan occasionally. Foreclosure: Foreclosure is often an option that you might want to consider in the case of a home loan, especially if you have a hefty amount of cash ready with you. Foreclosure helps you close the loan while partial payment brings down the amount, reducing the monthly EMI amount, thus being less burdensome on your pocket. To foreclose or make part payments, you are required to review your home loan to check the amount remaining, the home loan interest rates, the charges, tax benefits, and how much you will be saving ultimately and thereby write the application to the bank putting forth your request. Top up: Financial situations do not remain the same all through, and at times, you may find it difficult to pay for the home loan EMI while meeting other needs. To cater to the increased demand for money, applying for a top-up loan with the bank from which you have taken your home loan is prudent. However, to know whether you are eligible for a top-up loan, you need to review your home loan with the same bank or if any other bank offers a top-up along with a home loan balance transfer. Balance Transfer: The financial market is dynamic and is always changing. The interest rates may change. The interest rates may plummet, but there may be better opportunities for home loan borrowers, special offers, and more. The situation may make you opt for better rates in other banks, wherein you may go for a home loan balance transfer. To do so, you must check your home loan and submit the necessary loan documents, proof of income or financial status, a No Objection Certificate from the bank, and other necessary documents to support the balance transfer. Although there is no specific rule on how often to review your home loan, it is advisable to get a check done yearly to note the market rates and other essentials. When you can get your home loan top-up or home loan balance transfer from reputed financial institutions like PCHF, you can rest assured of a hassle-free procedure. [B-02] Summary Buying a home is a huge financial responsibility, and once you have taken out a home loan, it is imperative to review your loan from time to time. Reviewing the loan has many advantages, such as saving by foreclosure or part payment, transferring the balance to a lesser interest rate option, and meeting expenses during financial crunches through top-up. Top-up and balance transfers from financial institutions like PCHF allow you to get the best rates in the market without any hassle.

08-11-2023