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Tips & Advice

How Does Getting A Machine Loan Can Help You Grow Your Business?

For better sales and steady growth, as a businessperson, you need to have the right machinery. Irrespective of your industry, the machines you use have to be at par so that you can warrant maximum production and profit. With the help of the latest technologies, your machinery increases the production many folds and helps reduce the cost of labour/workforce and improve the overall efficiency. [B-01] Worn-down machinery or the necessity of a new one may often require capital financing. In such a scenario, if you need capital loan finance, there are many options that can help you in dealing with insufficient funds. Machinery loans can be taken in the form of a small business loan as well. To further boost the booming economy, the government has introduced several capital financing schemes that can greatly help small to medium businessmen. Let us take a look at the highlighting features of small business loans: 1. Pocket-Friendly Rates Facing financial issues can be detrimental to your business. In such a time, getting a capital loan at affordable prices can be a blessing. 2. Freedom to Choose Most banks offer capital loan finance to small businesses allowing a lot of flexibility in loan repayments, tenures, pre-payments etc. 3. Unsecured Capital Loans There are banks that allow certain small loan amounts to start-ups and small businesses without collateral. 4. Ease of Online Banking For a businessman, time is money. And you save a lot of it with online transactions. Online banking also makes money transactions simpler, quicker and convenient. Now let us take a look at the different working capital loan options that are available: 1. Credit Guarantee Fund Government Business Loan Scheme Credit Guarantee Fund Government Business Loan Scheme, CGTMSE, is probably the most suitable capital loan scheme for MSMEs. While offering collateral-free loans, you can avail of the loan through an authorised rural bank or commercial bank. The loan amount can go up to INR 10 lakhs, and above depending on the eligibility. 2. MUDRA Loan Created to offer capital loan finance opportunities to non-corporate, non-farm micro/ small enterprises, MUDRA loans can be taken from almost all kinds of banks in the private and the public sector including rural banks, corporate banks and small finance banks. To apply for the bank, you can visit the official MUDR website.Here are the eligibility criteria you need to look out for. The applicant: can be a non-corporate small businessman/ proprietor including: Shopkeeper Small manufacturing unit Food-service unit Repair shop Machine operator Food processors and others 3. Credit Linked Capital Subsidy Scheme Another credit scheme by the government aimed at technological upgrades of small businesses. This can be an ideal option for your machinery loan, as it gets you a 15% subsidiary on your eligible machinery investment.For this capital loan finance, you need to apply as a Single proprietorship business Co-operative or public/ private limited company Partnership firm 4. Business Loans by Piramal Finance Limited Getting a business loan has been made simpler and easier by PCHF. Speedy disbursals, minimal documentation along with an efficient and proactive 24X7 customer care, ensure that your working capital loan needs are fulfilled at the earliest. You can apply for your machinery loans up to INR 25 lakhs. An interest rate of 12.5% makes the loan an affordable option.Let us take a look at the eligibility criteria. The applicant: Must be from 21 to 70 years of age Can be either salaried or self-employed [B-02] Conclusion: When you work with machines, you need to be prepared for their natural wear and tear. Working capital loan in the form of a machinery loan can not only help in upgrading and repairing machines, but it can greatly boost the smooth running of your business. So, do not let your production get hindered due to a delayed upgrade of your machine. With the multiple options explained above, make an informed decision about the right capital loan and carve new ways for your company’s success.

08-11-2023

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Why Debt Consolidation Loan?

When it comes to debt consolidation, there are many misconceptions. It is important to understand the different aspects of debt consolidation so that you can plan your finances accordingly and make smarter financial decisions. Making poor financial decisions can lead to bad debt and increased credit repayment amounts that can lead to further debt. It is best to put a halt to this incessant cycle with a single debt consolidation loan. There are many debt consolidation loan benefits. In this article, we will have a look at debt consolidation loans and understand how they can be beneficial when it comes to the repayment of debts. [B-01] 5 Things You Need to Know About Debt Consolidation Loans Before deciding on a debt consolidation loan here are 5 key aspects that you should know. 1. It is Affordable Debt consolidation loans are considered to be affordable as they provide a greater range of flexibility while providing the benefit of nominal interest rates. In addition, it can be less of financial stress to repay a single loan rather than paying several debts that have varying interest rates. With a consolidation loan, you have a range of other benefits such as a unique flexi loan facility with which you can repay interest similar to that of EMIs. 2. Single Debt Agreement A debt agreement is essentially a contractual agreement between the lender of a financial instrument and the borrower. The main terms of this concern determine your ability to opt for additional borrowings. This way, the amount of the debt consolidation has to be used only to repay the outstanding debts that you have. With this agreement, you are also bound to pay your debts in a particular fixed period without any delays. In case of further delays, the debt can lead to the lender charging you with fines and penalties. 3. Does Not Clear Existing Debts It is key to understand that a debt consolidation loan does not reduce your debt obligation. The process of availing a debt consolidation loan does not eliminate your debt altogether. Instead, it makes your repayment process easier. Once you repay all of your existing debt with this loan amount, you will still have to repay the consolidation loan. You can make these repayments as EMIs throughout the tenor or can also choose to repay the entire loan as a lump sum amount. 4. Repay Multiple Debts With One Affordable Loan Usually, the process of repaying multiple debts can be challenging. Some of the main aspects that contribute to this challenge are varying interest rates, managing different streams of repayment, and others. For instance, you could have different credit card bills, home loan repayment, personal loan EMI, and others to repay on a recurring basis. Multiple repayments can also lead to errors leading to you defaulting a repayment. Instead, you can repay all of your debt such as credit card bills and other borrowings using a single debt consolidation loan. 5. Restricts Borrowing More During Consolidation In response to repaying many different streams of debt, it can be common to opt for more credit. Borrowing more debt can only result in a further complicated process of repaying debt. Instead, with a debt consolidation loan, you can opt for one stream of credit and repay several streams of debt. [B-02] In Conclusion Debt consolidation loans have numerous benefits that can simplify the debt repayment process. You can apply for a debt consolidation loan online with minimal paperwork and less hassle. If you are looking to avail of a loan, Piramal Finance can be beneficial. Along with excellent service, you can experience several other benefits such as quick approval and fast disbursal.

08-11-2023

Myths

Common Home Loans Myths

Getting a home loan in itself can be a process that involves plenty of research. Meanwhile, there are quite a bit of myths that are circulated around. So, while researching home loans, it is important to discount these myths so that you can make smart and informed decisions. In this article, we will have a look at the common myths that revolve around home loans. Understanding these myths will help you classify between accurate and inaccurate information during your research process. [B-01] Top 5 Common Home Loan Myths There are plenty of myths tossed around with respect to home loans in India. Now that the interest rates that are offered on home loans have decreased, most of the myths have been around the interest rate and the EMI that has to be repaid to the bank or lending institution. Pre-Approval Is the Same As Pre-QualificationGetting your home loan pre-approved is the process of identifying and understanding your eligibility to apply for a home loan. During the process of pre-approval, you will be asked to submit your personal information, financial information, and your property documents. If you get your home loan pre-approved, you would not have to repeat the eligibility verification process while applying for a home loan.However, getting your home loan pre-approved does not mean that you are qualified to have the home loan disbursed. The final decision with regards to disbursal of your housing loan amount is dependent on the bank or the lender. It could so happen that you can be pre-approved and end up not being granted a home loan. Higher Interest rate Translates To Higher EMIs When the lender offers you a higher interest rate, it is natural to get concerned about higher EMI repayments which could result in a financial crunch. However, it is not necessarily true. Many banks aim to make the process of EMI repayments nominal and easy for the customer. You have the option to increase your tenure and decrease the amount of EMI that you would have to pay.The bank or lending institution calculates your home loan interest rates by considering several parameters such as your age, income, credit score, and others. Having a good credit score and a good income can help fetch you a lower interest rate. Loans With Lower Interest Rates Are Good DealsMany people tend to believe that banks and lending institutions that offer a lower interest rate are a good deal. However, it is important to be careful about plans that are offered. In many cases where the bank offers an exceptionally lower interest rate compared to market standards, several other fees are charged. It is best to check for charges like penalty for prepayment, legal valuation fee, processing fee, and others.If these extra charges are expensive, you might end up paying an exorbitant amount in compensation for the low interest rate. Make sure that you understand the terms and conditions thoroughly and ensure that you have no hidden charges on your home loan. Fixed Interest Rates Are Better Than Floating Interest RatesWhen you decide on the nature of the interest rate, it is best to consult with your lender and consider your financial capacity. With a fixed interest rate, you can enjoy the same rate of interest throughout the tenure. With a floating interest rate, the amount of interest that will be charged will vary depending on the fluctuation in the interest rate. Pre-Payments Carry Penalty ChargesPenalty charges for pre-payments might be charged by a few banks. However, there are exceptions when it comes to these penalty charges. It is best to verify these charges with the bank you plan to take a housing loan from before coming to a conclusion. [B-02] In a Nutshell While availing of home loans in India, it is natural to come across several home loan myths. It is best to research thoroughly and validate the information you find on the internet to make sure that you are informed accurately. This can help you make the right choice with regard to your housing loan.

08-11-2023

How To?

How To Apply For Home Loan Online?

Understanding Home Loan Every person’s dream is to own a home. Most of us, though, cannot afford to buy the house outright. Taking out a home loan is one of the better ways to get your dream home. To be able to obtain the finest home loans in India, you must first comprehend the many terms related to home loans and then plan appropriately to obtain the best home loan in India through the online medium. [B-01] A home loan, sometimes referred to as a housing loan, is a sum of money borrowed from a lender to buy or build a home. Home loans can also be used to expand existing residences. There are various forms of home loans: For the buying of a residence For the purpose of constructing a residential property For the purpose of purchasing land For the purpose of home expansion Things to Consider while Applying for a Home Loan Online With the current progress in technology, Loan application processes have become completely online. The process is considered by many as much safer because there is no need to visit a physical branch. While the process remains similar, with an online application, it is important to be very careful with the documentation process to avoid delay in communication. Visit the loan provider’s website. Understand the specifics of the loan being offered, like information about the tenure, the interest rates, etc. Complete the Application Process, which includes entering the required loan amount too. Submit the necessary documents. The application will undergo verification from the lender’s side before the next step is taken. Amount of the loanThe principal amount of money you are eligible to borrow for your house is referred to as the loan amount. The amount of home loan you can get is mostly determined by your home loan eligibility, which is determined by a number of factors such as your CIBIL score, employment type, and income, among others. Piramal Finance (PCHF) only requires your documentary proof to determine your home loan eligibility. Disbursement of LoanThe quantum of house loan is considered to be disbursed when it is deposited to your bank account after your eligibility and documentation verification has been verified. Repayment of EMIsYour Equated Monthly Instalment will begin one month after you have received full loan disbursement. You must repay your house loan in equal, regular monthly instalments to repay your home loan. Loan DisbursementWhen you pay your EMIs up until the end of your loan term, you have paid off the principal as well as the interest. Home loans are typically paid off within the tenure or time for which they were obtained, however they might be foreclosed or prepaid. Prepayment fees are not charged in the case of floating interest rates, but they may be charged in the case of fixed interest rates. If you do not prepay your loan, you will be required to make timely EMI payments until your loan term expires, at which point your loan will be closed. That is, your home loan books will be closed. Do you Qualify To Apply for a Home Loan? Now that you have understood the basics of how to apply for a housing loan, it is important to check the criteria. You must be between the ages of 23 and 62 to be considered. Salaried staff must have at least two years of experience. Individuals who work for themselves must have at least three years of experience in their current area. In the case of NRIs (Non-Resident Indians), they must be salaried employees with at least three years of experience. What Documents Do I Need to Apply for a Home Loan? An applicant just needs to submit one or two items from each of the following categories: Valid passport, driver’s licence, life insurance policy, birth certificate, PAN card, and school leaving certificate are all acceptable forms of proof of age. Voter ID Card, Valid Passport, Driver License, Aadhar Card, and PAN Card are all acceptable forms of photo identification. Utility bills, bank statements, property registration documents, property tax receipts, and voter ID cards are all acceptable forms of proof of address. Existing loan information will be available through bank statements. [B-02] What is an EMI Calculator for a Home Loan? Due to the large size of most property loans, paying them in EMIs (Equated Monthly Instalments) helps to evenly distribute the loan burden. Manually calculating EMI is often complex, and as a result, people frequently get incorrect findings. An EMI calculator for a house loan is a simple online tool that rapidly calculates the Equal Monthly Instalments required to repay your home loan.

08-11-2023

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All About Top-Up Loan

Making your financial dreams come true can sometimes require a helping hand. Whether you're renovating your home, starting a business, planning a lavish wedding, or pursuing any other lofty goal, having the requisite funding is essential. When it comes to loans taken for housing purposes, your long-term goals can change. Perhaps you took out your loan five years ago and now wish to renovate your house. What should you do if the loan amount doesn’t suffice? This is where a top-up loan comes in. What is a top-up loan? A top-up loan is an additional help on top of a pre-existing loan provided by banks and financial institutions, which can help you fulfill your goals through extra financial aid. Specifically, a top-up loan works by being added over and above your home loan amount. Similarly to how you top-up your mobile balance when you run low, banks offer a top-up facility over your current balance. Most lenders offer a top-up facility. If your lender does not allow you to top-up your home loan, you can transfer to a lender offering this facility. Let’s understand how a top-up facility will work well using the aforementioned example of home renovation. Let’s say you took out a home loan of ₹50 lakhs payable over a ten-year period. Five years into your loan repayment, assume your outstanding principal on this home loan is ₹28 lakhs. However, this amount might not be enough if considering a major home renovation. You have multiple options. You could purchase a fresh personal loan to finance your renovation or opt for a top-up facility. In most cases, the top-up facility would be the cheaper option. Features of top-up loans: Top-up loans have the following characteristics. Use the following pointers to determine whether they are worth considering. Eligibility criteria: Similar to how a loan has to be approved by one’s lender, a top-up loan is not available to everyone who has availed of a home loan from a bank. Several factors are looked into by one’s lender before they decide to grant a top-up loan. For instance, the borrower’s ability to repay in timely installments is assessed by their credit score. This can be seen through the repayment of the previous home loan. If the borrower’s credit report is favorable, the bank will grant them the top-up loan. Processing fees: Usually, opting for a top-up loan isn’t free. Processing fees are applied to the top-up facility. Sometimes, the financial institution might be open to waiving the fee. Check with your lender beforehand about any processing fees for the top-up loan. Tenor: A top-up loan is usually given for the remainder of the pre-existing loan’s outstanding period. If your home loan policy has a remaining four-year tenor of 4 years, the top-up facility must be repaid within this tenor. However, the tenor can be different across lenders. Rate of Interest: The interest rate applied to your top-up loan facility will likely be slightly higher than the rate applied to your pre-existing home loan policy. However, the top-up loan interest rate is more attractive compared to the high interest rates applied on personal loans. Purpose: A top-up loan can be utilized to construct or modify your house. You can also use it to cover personal expenses, like funding a child’s education. However, note that you cannot utilize a top-up loan for any speculative purposes. [B-02] Conclusion A top-up loan can be exactly what you need to fund your home’s renovation. It is added over and above your pre-existing home loan policy and can be cheaper than taking on a separate personal loan.

08-11-2023

How To?

Tips To Reduce Your Home Loan EMI

If you have already taken a home loan, your EMIs must be debited every month. If you don’t have an existing loan and are planning to apply for a housing loan, it is important to know that you will be liable to make monthly EMI payments until your loan is completely repaid. For many people, EMIS takes up a majority of their monthly budget. In this article, we will have a look at how you can reduce your home loan EMI most efficiently. Tips To Reduce Home Loan EMI You can reduce the EMI of your housing loan in many ways. Here are 6 effective ways to reduce your monthly home loan EMI. Transfer Your Loan To a New LenderThere: Several banks and lending institutions offer home loans. These lenders offer different benefits, such as home loan interest rates, tenure, fees, etc. So, if you have an existing home loan with a lender who charges a very high interest rate, you can transfer your home loan to a different lender that offers a lesser interest rate. Reduce home loan interest rate to pay lesser monthly EMI. Most home loans are offered on a floating interest rate basis and have no penalty on transferring your loan. So, the only cost that you will have to bear is the fee that is charged by the new lender. Change From Fixed To Floating RateIf you opted for a housing loan with a fixed interest rate, you are more likely to pay a higher home loan EMI than required. So, opt for a floating interest rate as lenders usually charge about 1% to 2% higher with fixed interest rate home loans. Extend Your TenureIf you are not in a financially sound position to pay high EMIs, you can opt for an extension of your tenure. This can help you stretch out your payments over a longer period of time. It can also help lift the pressure of paying higher EMI and provide you with some relief. For example, if you have to repay ₹40 Lakhs at an interest rate of 7.5% over a period of 10 years, then your EMI would be higher when compared to a tenure of 20 years. With a tenure of 10 years, you would have to pay ₹47,481. Whereas, with a tenure of 20 years, you would only have to pay ₹32,224 every month, which is ₹15,257 less than the EMI you have to pay on a 10-year tenure. Make Use of Loan RestructuringThe Reserve Bank of India (RBI) provides the option to restructure loans. This initiative was introduced during the pandemic when many could not pay their EMIs. In response, the RBI allowed borrowers to opt for a moratorium, with which they could waive their home loan EMI for a certain period of time and restructure the loan accordingly to a suitable repayment schedule later. Switch to External BenchmarksThe Reserve Bank of India introduced external benchmarking to bring in a more transparent and standardized methodology. All banks are mandated to adopt external benchmarking when it comes to retail loans and MSME loans. However, banks also have the option to extend the method of benchmarking to other loans, such as home loans. Switching to a bank that follows external benchmarking for home loans can help you avail of a floating interest rate and save on your financial expenditure. [B-02] In Conclusion While availing of a home loan, it is important to be consistent with your home loan EMI repayments. If your EMI payments are high, there are plenty of ways to reduce your home loan EMI. It is wise to research before choosing a home loan so that you can pick one that offers the best home loan interest rates so that your EMI payments stay affordable. If you are looking to apply for a home loan, Piramal Finance can help you plan your home loan.

08-11-2023

Tips & Advice

10 Important Tips To Consider Before Taking A Home Loan

Buying Home Loan Property is a valuable asset that can provide you with a variety of financial benefits. Whether you want to buy a property for investment purposes or to discover a new home, the financial sector offers a variety of lucrative and useful lending options. If you’re short on cash or don’t want to liquidate your savings, a housing loan is a terrific way to get some help. [B-01] Financial institutions assist you in realising your dream of owning a property by offering low monthly payments and the flexibility to choose your repayment term. But, before you apply for a house loan, consider these helpful home loan tips that could make the application process go more smoothly and simplify loan repayment. Financial institutions assist you in realising your dream of owning a property by offering low monthly payments and the flexibility to choose your repayment term. But, before you apply for a house loan, consider these helpful home loan tips that could make the application process go more smoothly and simplify loan repayment. 1. Investigate your loan options Make an effort to perform extensive research on the possibilities available in the market before applying for a home loan, especially now that information is readily available on the internet. Your study should also contain the three most important aspects of a loan: down payment, EMIs, and repayment period. By conducting research on these three aspects before to submitting your house loan application, you will be able to select a suitable home loan from a better lender with lower interest rates. Home loan amounts are also typically higher than other loans, so make sure you look into all the specifics and uncover all the nitty-gritty before, during, and after the application. 2. Strive for Cost-Effectiveness While there are many different types of home loans to pick from, you should keep in mind that affordability is a major element to consider before applying. Consider overhead charges in addition to the EMI you choose to pay each month, and keep a consistent income outflow in case of an emergency. Hence, while you may always choose to buy a house that you want in a location that you prefer, being able to finance the home loan is as critical. 3. Spend with caution The affordability requirement is immediately followed by the monthly expenditure clause. Once you have a home loan to repay, sticking to a strict budget to meet your equated monthly instalments is preferred and suggested. To preserve trust and avoid an overdue or increased interest rate, you must pay your EMIs on time. Avoid spiralling into non-payment of a house loan by directing your resources into regular and timely loan repayment in order to achieve complete ownership of your home. This includes being cautious with your money and deferring any non-essential expenditures. 4. Select the Most Appropriate EMIs The amount of the equated monthly instalment is determined by you. Banks provide a variety of EMI choices to meet the needs of different borrowers. EMIs are also greatly influenced by the amount of money you put down on a house when you buy it. The lower the stress of the outstanding amount being converted into EMIs, the larger the down payment. 5. Tenure of Repayment The length of time it takes you to repay the loan is referred to as your repayment term. The repayment period and your EMIs are inextricably linked. While choosing a longer term may result in lower EMIs, it also raises the interest rate charged, causing you to pay double or triple the original loan amount due to high interest. If you have a steady and increasing income and stick to a strict budget, a short payback period with higher EMIs is preferable. The interest rates on these types of loans are much lower to encourage rapid payback. Banks can provide appealing interest rates to customers who choose a shorter repayment period. 6. Keep your CIBIL score up to date Maintaining a good credit score is a must when applying for any type of loan in the banking industry. Regularity pays off, whether it’s a cyclical credit card payment or a loan payback. If your CIBIL Score is above 750, you may be able to get even better interest rates on your home loan. This is accompanied by a much larger likelihood of faster loan processing and disbursal. 7. Understand the Foreclosure Norms Keeping a close eye on the shifting RBI rules could be beneficial to you on a number of levels. You avoid paying any additional fees by foreclosing your home loan by repaying the outstanding amount sooner than the agreed-upon time. The sooner you pay off your debt, the better your credit score will be. 8. Checking Your Eligibility for a Home Loan Before applying for a house loan, it’s critical to double-check your eligibility. The value of documents relevant to your credit history cannot be overstated. Many institutions, such as Piramal Finance, provide home loan eligibility criteria on their websites. 9. Charges Not Included Aside from the EMIs, banks may charge borrowers administrative, processing, or service fees at the time of loan application. Make sure you discuss this with the lender before applying for a loan. Check whether the charges are one-time or monthly; if they are monthly, they must be taken into account with your EMIs, and your monthly budget must be arranged accordingly. 10. Please take time to read the documents thoroughly Examine the agreement papers thoroughly to gain a thorough understanding of the loan application. We offer aided loan services at Piramal Finance. However, for your satisfaction and long-term mutual trust, it is required that you read all required documentation before signing the loan contracts. [B-02] In A Nutshell With property prices soaring and the market’s high interest rate regime, purchasing a home becomes an important decision for many of us. As a result, choosing the correct house loan product on the market becomes vital in order to avoid any unpleasant surprises later on.With all of the aforementioned considerations in mind, obtaining a house loan becomes a lot easier.

08-11-2023

What is Pradhan Mantri Awas Yojana (PMAY)

Whether big or small, a roof over the head has always been considered a distant dream and a valuable possession for individuals from economically weaker classes. A Pradhan Mantri Awas Yojana is a big step toward making this dream of owning a home come true for these Indian citizens. What is Pradhan Mantri Awas Yojana? Pradhan Mantri Awas Yojana (PMAY) is an Indian government initiative launched by PM Narendra Modi in June 2015 and is based on the concept of “housing for all”. The idea behind this initiative is to provide affordable housing to the urban and rural poor of the country. The government proposed building over 2 crore homes in urban areas by 2022 for citizens who come under economically weaker sections and low-income groups. The tenure for loans under the PMAY can go up to 20 years. This scheme also focuses on making housing affordable for demographics such as women, scheduled castes, scheduled tribes, and minority groups. Depending on the region it caters to, PMAY is divided into two parts Pradhan Mantri Awas Yojana Urban (PMAY-U) Pradhan Mantri Awas Yojana Gramin/Rural (PMAY-G/PMAY-R) Pradhan Mantri Awas Yojana Urban (PMAY-U) The PMAY-U scheme launched in June 2015 addresses the housing shortage issue among the Economically Weaker Sections (EWS) and Middle-Income Groups (MIG). Listed below are the three phases of PMAY-U, which are envisioned from start to completion of house construction. Phase 1 – April 2015 to March 2017, 100 cities and union territories Phase 2 – April 2017 to March 2019, 200 more cities and union territories Phase 3 – April 2019 to March 2022, remaining cities to be covered. Pradhan Mantri Awas Yojana Gramin/Rural The PMAY-G scheme, Indira Awas Yojana until 2016, is administered by the Ministry of Rural Development. This scheme focuses on providing affordable housing to citizens living in rural parts of India. Houses are provided to people who do not own a house or those living in kutcha houses. Eligibility Criteria for PMAY The important conditions to be kept in mind while applying for a loan under the PMAY scheme are The maximum age limit for beneficiaries is 70 years at the end of the loan repayment period. Family income limit based on different classes eligible for the PMAY scheme is Classes Family income limit EWS (Economically Weaker Section) ₹3 Lakhs per annum LIG (Lower Income Group) ₹6 Lakhs per annum MIG-1 (Middle Income Group-1) ₹6-12 Lakhs per annum MIG-2(Middle Income Group-2) ₹12-18 Lakhs per annum Anyone from the LIG, EWS, and MIG groups who owns a home or property in their name or their family member’s name in any part of India is not eligible for benefits under this scheme. To be able to buy a home under this scheme, the applicant should not have availed of a subsidy under any other central/state government housing scheme. PMAY benefits can not be availed for already-built houses. Benefits of PMAY Some of the key benefits of the PMAY scheme are mentioned below Ground-floor house accommodations are preferred for senior citizens and differently-abled citizens. Subsidized home loan interest rates are provided to the eligible applicants for 20 years. In-situ rehabilitation of slum dwellers by providing them with concrete residences. Affordable housing for people from all walks of life. Environment-friendly homes are built under this scheme Documents Required for PMAY Listed below are a few documents required while applying for a loan under the PMAY scheme Properly filled and duly signed loan application form Identity proof document (Aadhar card, PAN card, voter ID card, or Driving license) Address proof document (Aadhar card, Passport, voter ID card, or Rent agreement) Property allotment letter or any property-related documents Proof of income Bottom Line With its mission statement “housing for all,” the PMAY scheme has played a vital role in making housing affordable for people from all walks of life. If you have ever dreamt of having your own home and meeting the eligibility criteria for the PMAY scheme, now would be the right time to apply for a housing loan and fulfill that ever-distant dream.

08-11-2023

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Difference Between Home Extension Loan And Home Renovation Loan

There are different types of home loans available. The most common are basic home loans for buying or constructing a house. Banks and financial institutions also offer loans for home extension and renovation. Both home extension and renovation are costly processes. Therefore, these home extension and renovation loans can be very beneficial for homeowners. Let us know more about them, followed by their differences. What are home extension loans? With time, people’s requirements change. Families grow, and as a result of this, people require more rooms. Other than that, people also wish to add certain features to their houses. Some people build a balcony because their previous house lacked one. Others want to transform the excess space into a lawn, pool, or garden. Adding a floor to single or double-story houses is also a common occurrence. Although these home expansion processes are less costly than buying an entire home, they still cost a lot. Therefore, these home extension loans come to use. People wishing to extend their homes can avail of a home extension loan from a bank or financial institution. Here are the features of home extension loans. Simple eligibility criteria Great interest rates 90% to 100% of the extension value is given as the principal amount. Long repayment tenure Easy documentation What are home renovation loans? Every home needs renovation at some point. As houses age, brittle plasters affect the walls. Simultaneously, the woodwork starts to wear off, and the roof leaks. Therefore, these houses need repairing. Some people also love remodeling and renovating their houses to give them a different look. All such renovations and alterations require a lot of money. Thus, banks and financial institutions offer home renovation loans. These loans are easy to access and have simple eligibility criteria. Some features of home renovation loans in India include: Easy eligibility criteria Low interest rates Quick approval and disbursal High loan-to-value ratio What is the difference between a home extension loan and a home renovation loan? Home extension and renovation loans are useful for people who want to improve their homes. They are both easy to obtain and offer attractive interest rates. However, both have their pros and cons. Here are some differences between the two. 1. Shifting: While renovating, it is mandatory to move to a new temporary residence. This has its own expenses, and the process is hectic as well. But if you’re adding a room or a floor to your house, there is no need to move. In this respect, home extension loans are more convenient. 2. Ease of approval: Although both loans get approved fairly easily, home renovation loans have a higher approval rate. This is because they are more popular and lenders are more comfortable granting them. 3. Tenure: Home extension loans are almost similar to conventional home loans. They also have similar tenures for repayment through EMIs. They have long tenures, thus offering affordable monthly installments. Home renovation loans have comparatively shorter tenures. 4. Collateral: Home extension loans are comparable to the usual housing loans. Therefore, lenders sometimes require collateral against which they grant extension loans. Home renovation loans have no such requirements. 5. Hassle-free process: Home renovation loans require minimal documentation and can be disbursed within a few minutes. Home extension loans also require only basic documents. However, lenders make a few more inquiries when granting the latter. 6. Flexibility to spend: One of the biggest advantages of home renovation loans is that they allow you to allocate the funds wherever you want. You can use the granted loan amount to do any kind of work you wish to do. You can invest it in carpentry, plumbing, masonry or anything else. As for home extension loans, you can only spend them for a particular cause. [B-02] 7. Balance transfer facility: Loan balance transfer allows you to transfer your outstanding loan balance to another lender for lower interest rates. This helps reduce your burden of debt. It also allows you to extend your repayment tenure as well. Most home extension loans enable borrowers to transfer their loan balance. It is less likely to be available for home renovation loans.

08-11-2023