Buying a home of one’s own is a dream every person has. But today, that dream is not limited to just men. With societal changes, women are becoming homeowners and building a home of their own. To encourage more women to go on the same path, banks and financial institutions have many benefits in place. These home loan benefits help women avail of loans without much hassle. Thus, more and more women are starting to have houses credited to their name. If you are a woman looking to buy a house, these are the home loan benefits you should know about. [B-01] 1. Lower interest rates for women: One of the biggest home loan benefits for ladies is the lower interest rates. People who have ever purchased anything on a loan will know that even a 0.01% difference in interest rates amounts to a lot of savings. In order to incentivize more women to buy their own houses, banks and financial institutions offer concessions on the rate of interest on the home loan. The concession might vary from 0.05% to 0.1%. Although this number doesn’t look as impressive, it can make a huge difference. Let us understand this with a simple example. Typically, home loans last for long periods of time. It might take even 15 to 20 years, in most cases. So let us assume that a borrower takes a home loan of Rs. 50 lakhs for 20 years. The interest rate applicable for male borrowers is 8.65%. While the interest rate offered to female borrowers is 8.6%. Therefore, the interest outflow for the male borrower is Rs. 55,28,083 and the interest outflow for the female borrower is Rs. 54,89,953. Evidently, the savings from the woman borrower’s interest outflow amounts to Rs. 38,130. 2. Women enjoy tax benefits, even as co-borrowers: All women availing a home loan are eligible for tax deductions of up to Rs. 3.5 lakh. The same tax benefits can also be availed if you apply for the loan with your spouse. If a couple applies for a home loan jointly, they can still claim the tax deductions. The maximum tax deduction allowed on principal amount is Rs. 1.5 lakh. While the maximum tax deduction allowed on the home loan repayments is Rs. 2 lakh. 3. Lower stamp duty charges for women: Stamp duty adds a significant amount to the cost of the house. To make sure that more women own property, different states lowered stamp duty charges by 1 to 2%. This can result in a woman saving up to Rs. 1.6 lakh on a property worth Rs. 80 lakh. 4. Pradhan Mantri Awas Yojana (PMAY) scheme benefits: The Pradhan Mantri Awas Yojana (PMAY) is a government initiative. The scheme is designed to help women own more houses. It helps women to get access to home loans. Widows and single working women are given preference. You can visit the official website of Piramal Finance to apply for the scheme with a simple click. 5. Large amounts of loan with simple eligibility criteria: To attract women borrowers, lenders have relaxed their eligibility criteria. Some financial institutions offer home loans to people with a credit score of 650 or less. These kinds of home loan benefits make it easy for women to buy their own houses. If you are a woman looking for the best home loan options, Piramal Finance website has a lot to offer. 6. Higher chances of loan approval: Statistics have shown women to be better borrowers than men. There are less defaulters among women and they also have higher credit scores on average. Therefore, financial organizations tend to approve loans of women more easily. 7. Flexible tenures: Among the best home loan benefits for women are the flexible repayment tenures. Women applying for home loans can choose repayment tenures lasting up to even 25 to 30 years. Such convenience gives women the confidence to build a home of their dreams. [B-02] 8. Other benefits: Lenders often have exciting offers and gifts for women availing home loans. These include vouchers, gift cards, gold coins and free holidays, among others. These additional sweet gestures are truly worthy of mention.
Getting preapproved for a home loan is considered to be very important in the process of buying a home. You can start off by consulting with a bank or lending institution and providing details about your home loan capital requirements. By getting a pre-approval letter from your bank, you will be able to discuss all the available loan options and budget your loan with your lender. This article discusses pre-approved home loan benefits and how to get a pre-approved home loan. [B-01] What Is a Pre-Approved Home Loan? A pre-approved home loan is a sanction provided by the lender. The bank will determine your eligibility for a home loan before granting this pre-approval. Unlike a typical home loan, a pre-approved home loan does not involve plenty of scrutiny along with legal and technical validation of the property. After verifying all of your information, the bank will assess your eligibility and license a loan with a particular interest rate. However, you will be required to submit all of your property documents along with your financial information. It is also important to remember that a pre-approved home loan does not translate to a guaranteed home loan. The lender would still have to approve your application before granting a home loan. Benefits of Pre-Approved Home Loans There are plenty of benefits that come along with pre-approved home loans. Here are 3 key benefits. 1. Negotiate With The Lender: As you gain an understanding of your eligibility and the interest rate offered directly from your lender, you would be in a better position to negotiate the interest rates and other terms. With a sanction letter in hand, negotiating becomes easier. 2. Easier And Faster Loan Process: Now that your loan application has already been verified and pre-approved, you can speed up the process of your home loan application. The only processes that have to be completed for disbursal include the income document certification and the legal procedures. 3. Better Financial Planning: When you get your home loan pre-approved, you gain a deep understanding of your financial eligibility, repayment requirements, and others. This insight can help you plan your finances better and stay on track with your loan repayment. Eligibility Criteria The eligibility criteria for a pre-approved home loan may vary depending on the bank you are availing the home loan from. However, there are certain common criteria that have to be met to be eligible for a pre-approved home loan. Age: To apply for a pre-approved home loan, you should be a minimum of 21 years and a maximum of 70 years of age. Credit Score: Your credit score is a crucial criteria to apply for pre-approved home loans. It should be at least 700 or above. Employment: People from a horizon of employment can apply for pre-approved home loans. Both salaried and non-salaried individuals who are existing or non-existing customers can apply. Things To Keep In Mind While Applying For a Pre-Approved Home Loan While getting a pre-approved home loan can be extremely beneficial, here are some things that you should keep in mind. 1. Associated Fees: It is important to consider the fees that are associated such as the pre-approved home loan processing fee and others. 2. Expiry Date: Your pre-approved home loan may expire over time. Usually, the time range for your pre-approved home loan can vary between 3 and 6 months. Make sure that you check the expiry date with your lender. 3. Credit Enquiry: You may be subject to credit enquiry once you apply for a pre-approved home loan. This is a process during which your lender will check your credit score and assess your creditworthiness. 4. Rejection of Application: It is important to understand that pre-approved home loans do not guarantee the disbursal of your home loan. Your application has to be verified by your lender after the pre-approval process for your home loan amount to be disbursed. 5. Interest Rate: While you apply for a pre-approval, make sure that you discuss the interest rate with your lender. In many cases, the interest rate of the home loan may be fixed during the time of pre-approval. [B-02] Final Thoughts Pre-approved home loans can help understand your eligibility and also plan your finances in advance. While getting your home loan pre-approved can fasten the home loan application process, it is not a guarantee of disbursal. If you are looking to apply for a home loan, Piramal Finance can offer you with home loans at competitive interest rates and plenty of benefits.
Many tax deductions can encourage more people to invest in houses. Here are the home loan tax benefits that you should know about. Tax benefit for interest paid on home loan A home loan is usually taken to purchase or construct a house. These home loans are repaid in the form of EMIs (Equated Monthly Installments) over a period of time. Every EMI has two components – the interest and the principal amount. A taxpayer can claim tax deductions on the total amount of interest paid in a single financial year. For a “self-occupied” property, the maximum limit for an income tax rebate is Rs. 2 lahks. Self-occupied properties are the ones where you live. However, there is no limit for properties bought on home loans and let out. Tax benefit for interest paid for property under construction This applies when the property you bought is under construction or has yet to begin. To be eligible for such tax deductions, the construction must be completed within 5 years of availing the loan. The Income Tax Act (ITA) allows people to gain tax benefits on such types of interest, known as “pre-construction interest.” The pre-construction interest is deducted yearly on top of the total interest paid. It is deducted in five equal Installments. It is eligible from when the property was acquired to when the construction was completed. Tax benefit on principal repayment Apart from the tax deduction on the interest paid, you can also claim tax benefits on the principal amount of the EMI paid in a year. This is mentioned in Section 80C of the Income Tax Act. The total tax rebate is capped at Rs. 1.5 lakh a year. This is mentioned in Section 80C of the Income Tax Act. The maximum rebate that you can receive is capped at Rs. 1.5 lakh. Here are the conditions under which you can avail tax deductions on the principal amount of your EMI: This benefit is only applicable after the construction period is over. Unlike the tax deduction on the interest paid, this is not allowed during construction. To be eligible for this, you must not sell the house within 5 years of buying it. If you sell it within 5 years of acquisition, the deductions will be added to your total income in the year of sale. Deduction for stamp duty and registration charges Stamp duty charges amount to a huge amount when buying a property. So does the registration charge. Under Section 80C of the Income Tax Act, you can also enjoy deductions on stamp duty and registration charges. It is eligible only for the year in which these amounts are paid. Extra tax benefits for first-time home buyers There are special housing loan tax benefits for first-time buyers. As per the provisions of Section 80EE, all first-time buyers are eligible for an additional tax deduction of up to Rs. 50,000. This is separate from the tax benefits on the interest and principal amount of the home loan EMIs. Therefore, this benefits people who want to buy their first home even more. Here are the conditions under which tax deductions on the first home loan interest can happen: The loan applicant should not own any other property at the time of loan application. The house for which the loan is being taken should be their first owned property. The worth of the property should not be over Rs. 50 lakhs. The loan amount granted should be Rs. 35 lakhs or less. Tax deductions for joint home loans If the home loan is taken jointly, each property's co-owners can claim a deduction for the interest paid and principal repayment. [B-02] Tax benefit on home loan for owning a second property If you take a home loan to own a second property, you are also eligible for tax deductions. The benefit depends on whether the property is considered self-occupied or lent-out. Under Section 24(b), tax benefit available on self-occupied property is capped at Rs. 2 lakh. There is no limit to lent-out properties.
Buying a home can be absolutely exciting. It is natural to lean towards a home loan to finance your home. However, it is recommended to find the best home loan available so that you can have the best experience. While considering the interest rate offered, the capital required, processing fee, and other charges, there are a few other aspects that you should consider. Here are some tips that you can use to have the best home loan experience. [B-01] Tips For The Best Home Loan Experience By following these home loan tips, you can have a seamless experience throughout the period of your home loan. 1. Check Your Credit Score: One of the most important aspects that a bank or lender will verify is your credit score. By analysing this score, they can gauge your creditworthiness. It is recommended to have a credit score of 750 or above. Having a high credit score can also fetch you other benefits such as a decreased rate of interest. If you would like to improve your credit score, you can do so by being timely with your credit bill payments, repaying a huge debt, etc. 2. Save For Your Down Payment: Depending on your bank or lending institution, the range of down payment may vary. Usually, it ranges between 2.25% and 20% of the price of the home you plan to purchase. While designing a monthly budget, make sure that you put away the required money for your down payment. 3. Keep Your Financial Documents In Place: During the home loan application process, you will be required to submit a list of documents. Make sure that you have these documents ready and in palace so that you can speed up the application process. Make sure that you have all the mandatory documents such as ID proof, address proof, bank statements, payslips, income tax returns, form-16, and others. 4. Compare Offers: Before you choose a home loan, make sure that you compare the available offers. A few banks may offer lesser interest rates along with other benefits. Compare these offers and pick a home loan that suits your needs the best. 5. Use a Home Loan Calculator: While making sure that the requirements for a home loan application process is ready, so is planning your repayment. Using a home loan calculator is considered to be one of the best home finance tips as it helps you plan your budget in a data-driven manner. 6. Understand Details About Your Interest Rates: The interest rate that is offered for your home loan plays an important role in determining the cost of your home loan. Discuss with your bank regarding your interest rate, be it a fixed or a floating interest rate. This can help you stay prepared and estimate your repayments. 7. Get Pre-Qualified: By having your home loan pre-qualified, you can speed up the entire application process and the verification process. To pre-qualify, you have to submit your financial information such as your income, savings, and investments along with your property documents. 8. Actively Respond To Your Lender: If you are contacted by your lender regarding any further requirements or requests, make sure that you respond quickly. This can help the lender keep your loan application active and move ahead with the process quickly. 9. Understand Different Loan Options: There are plenty of options available when it comes to buying home loans. For instance, you could either choose a fixed interest rate or a floating interest rate. Ensure that you check with your lender about all the available options. 10. Maintain Your Credit Habits Throughout The Process: In the middle of the home loan verification process, lenders may check your credit score. So, it is best to continue good financial habits even while your home loan is being processed. [B-02] In a Nutshell While opting for a home loan, it is important to understand all of its associated aspects. In addition, make sure that you plan your repayment schedule in advance so that you can financially prepare yourself. If you are looking to apply for a home loan, you can apply for one with Piramal Finance and experience several benefits including quick loan sanctions.
Buying a home is the pinnacle of achievement for most Indians. It is the labor of their years of effort, sacrifices, and work. However, the modern Indian is more financially literate and savvy. Besides owning a home, many Indians have opted for real estate investing and even using business loans or other means to finance their ambitions. Let us look at some of the best cities in India to invest in real estate. This is a good time to invest in real estate. With significantly low interest rates being offered by most banks, additional interest relaxations for properties under 45L, several upcoming ‘smart cities’, and concessions being offered to developers for timely completion of projects, real estate investments are ripe for the plucking. While these might not be ideal for buying a property in metros or most Tier-1 cities, these are lucrative enough to opt for Tier-2 cities as your venue of choice. [B-01] Factors to Consider While Choosing the City While there are several considerations to be taken into account, some of the critical factors while selecting the city for investment are as follows: Employment Opportunities across sectors Healthcare Facilities Educational Institutions for diverse ages and specializations Mobility, Connectivity and Transportation Safety and Security Infrastructures, like roads, water and electricity Governance and socio-political stability Real estate price trends and future potential Top Cities for Real Estate Investment Keeping the above factors in mind, we take a quick look at 5 of the best cities in India for real estate investing, in no specific order. Navi Mumbai / ThaneWhile Mumbai might be the city of dreams, it is not necessarily known for affordable housing. The space crunch and massive population add to the woes of living in this metro. However, with its expanding borders spreading towards Navi Mumbai and Thane, the available properties are larger and far more affordable. Since these are newer areas, they can boast of well-planned societies offering the choicest of amenities. CoimbatoreCoimbatore is an already well-established industrial and education hub in Tamil Nadu. It is nicknamed the “Manchester of the South’ due to its textile industry. Lately, it has also started attracting automobile manufacturing and IT-enabled services sectors. This implies a lot of job and career opportunities, resulting in a large migrant population who will require housing and avail of other infrastructure that the city has to offer. With its affordable housing rates, investment in this city is expected to increase manifold shortly. IndoreRegularly winning the national award for the cleanest city in the country, Indore is the right mix of modern amenities with affordable surroundings. Situated in Madhya Pradesh, Indore is home to several businesses of different scales and a plethora of other facilities like education and healthcare. In fact, it is one of the few cities that has both an IIM and an IIT. Indore has the potential to provide rich returns on your investment in the next few years to come. VisakhapatnamVizag, as it is fondly known, is a major Indian port city located in Andhra Pradesh and is of strategic and economic importance to the nation. It boasts high educational standards and is one of the prototypes of the ‘smart city’ program. Following in the footsteps of its sister city, Hyderabad, Visakhapatnam has started attracting IT companies and workforce by the hordes. The great climate and lush greenery are added advantages to investing and/or residing in this city. ChandigarhReputed as one of India’s first and most well-planned cities, Chandigarh is highly regarded for its robust infrastructure and multi-connectivity options. Being a Union Territory, several tax and excise benefits can be availed here. With the new airport corridor, the surrounding areas of Mohali and Panchkula have also become rife with upcoming projects and high-rise housing societies. The lush greenery and beautiful backdrop of the Himalayas are an added bonus for a peaceful living environment. [B-02] In Summation While this list is just a guideline, you may choose any city for real estate investing based on your preferences. If you are looking for real estate financing or a business loan, visit the Piramal Finance (PCHF) website, which will help you in this endeavor.
Financing your new home through EMI gives a sense of ownness. However, it may be a costly deal but a fair one too. With property rates rising with each passing day, the thought of buying a home through savings appears to be impossible. The most common way to buy a home is through a home loan. A home loan provides you with alternatives associated with the mode of repayment. One easy repayment mode is that of Equated Monthly Installments (EMIs). An Equated Monthly Installment (EMI) is a set sum paid by a lender to a borrower in exchange for taking out a loan. For home loans, there are two sorts of EMIs: full EMI and pre-EMI. You can choose the loan payback plan based on your financial stability. Read on to understand better about Pre EMI and Full EMI. [B-01] Understanding Pre EMI Monthly payments that simply comprise the interest component of your home loan are referred to as pre-EMI. You don’t pay anything towards the principal amount when you use Pre-EMI. When your house or apartment is being built, you will be given the option of paying Pre-EMIs. As a result, a Pre-EMI is a lower payment because it excludes the main component of the home loan. Your lender will urge you to pay the EMI in full after the construction of your property is completed. Remember that a Pre-EMI is not included in the term of the house loan. Its sole purpose is to relieve you of the load of development while your asset is in the works. Understanding Full EMI The usual home loan EMIs that you pay every month for your chosen tenor is referred to as full EMIs. It consists of both the interest and the main components. If you choose the Pre-EMI payment option, the full EMI payment will begin once the construction of your home or apartment is completed. Even if the loan for your under-construction home is still being disbursed in stages, some financial institutions allow you to start paying full EMI right away. Pre-EMI vs Full EMI The following principles will help you understand the Pre-EMI vs Full-EMI financing. Loan disbursals differ: It is that if you choose full EMI, you can get the complete loan amount disbursed; however, if you choose pre EMI, the loan amount is only partially disbursed. Interest rates differ: Because full EMI interest rates are calculated on the entire principal amount. The pre-EMI interest rate is determined using the loan amounts that have been disbursed. EMI payments: In the Pre-EMI option, monthly payments begin as soon as the building begins. The home loan EMIs for the Full-EMI option, on the other hand, do not begin until the property is completed and you have possession. Impact on loan components: Using the Full-EMI option to pay each monthly instalment reduces the principal amount and length of the loan. The EMIs paid through the Pre-EMI option, on the other hand, have no effect on the principal amount, loan payback term, or interest rate. Property resale: With Pre-EMI, the borrower will be able to sell the property shortly after it is completed or within a few years. Individuals who choose the Full-EMI option, on the other hand, will be unable to sell the property for a set length of time. Impact on finances: Paying an EMI through Pre-EMI can be less expensive because the borrower only has to pay interest during the pre-construction period, which is not the case with the Full-EMI option. Tax Considerations The tax effects are the same whether you pay Pre-EMI or Full EMI. Remember that you won’t be allowed to deduct interest on your house loan until the construction of your home is finished. When you get your possession certificate, the amount you paid in interest will be totalled and deducted from your taxes in five equal instalments. [B-02] The Bottom Line Opting for EMI as an option to repay your home loan is like having a key to your home’s door lock. EMI plays a vital role in a home loan. One should be well informed about Pre EMI and Full EMI to make a prudent decision while considering Home loan EMI. Consider either one of them as per your financial suitability.
When it comes to loans, collateral is the most daunting term for people. The question seems very basic, but there always remains a lack of clarity about the various forms of properties and their applicability as collateral for a secured loan. The article you are about to read would bust all the myths and clarify the various types of properties accepted for a collateral and secured business loan. What is meant by – Collateral against Loan? Collateral can be an asset that the borrower pledges to the lender as security against the secured loan. It is a supporting medium for a loan transaction as the lender can liquidate it in case of any default in payment, and thus, it acts as a security against the amount being lent by the lender. For example, suppose you want to start a new business for which you plan to take a loan. Your lender would ask you to pledge any collateral like your property or some other kind of security like real estate, bonds, or government securities of the same or higher financial value. Further, once the lender does the assessment and is satisfied with the document, they will easily grant you the loan and fulfill your financial requirements. Various types of Collateral: Collaterals are generally classified as: – Immovable Property/Assets Liquid Assets Immovable Property/Assets are in the form of a house, residential building, or parcel of land. Liquid Assets are easily liquidated, such as Government securities, Bonds, Insurance, Fixed deposits, etc. People often believe that all forms of property qualify for a collateral loan, but this is not true. Read ahead to learn about the types of properties that are accepted for a secured loan. Types of Properties that are eligible to be collateral for the loan: Residential Properties: –The home you live in is rightly said to be your greatest asset. All residential properties qualify for a secured loan; it can be the house you live in, any residential apartment you have rented, or any other form of vacant residential property. Residential properties are the most preferred collateral for lenders, and the loan processes for these assets are highly streamlined. You can continue living in your home, and once you are done paying back all the outstanding loans, you can easily claim back the ownership rights of your residential property. A plot of land: Parcels of land in your ownership can also act as collateral, with the basic requirement of being properly demarcated for identification purposes. The rules regarding land ownership vary from state to state, so just as a matter of caution, refer to your state’s guidelines regarding land ownership. Also, the land you are pledging as collateral should not be agricultural land but free from ownership disputes. Commercial Properties: –Properties following certain specific municipality guidelines are designated as commercial properties. These properties are generally used by enterprises for commercial purposes other than residing. Commercial properties are also in high demand as collateral as they are of huge financial value, and lenders easily accept them as a security against any secured loan. For a commercial property to be eligible for a secured loan, you must check that no residential property falls in its vicinity as per the local municipal guidelines. Properties having more than one owner: –There is a lot of confusion regarding the eligibility of properties with multiple owners for a secured loan. A property having multiple owners can also be pledged as collateral against any secured loan, but only with a basic condition that the said property's ownership must be shared among the close family members, and there should not be any live ownership disputes. The relations preferred in this case are parents and children, siblings, mother-son, etc. Relationships like in-laws, friends, and other parties can also be considered based on the lender's guidelines. [B-02] To Summarize: If you are interested in collateral loans for housing finance or secured business loans for your start-ups, you can refer to various online portals. The most preferred one currently is Piramal Finance.
Marginal Cost of Fund Based Lending Rate As a home loan borrower, you may wish to get the lowest possible loan interest rates. Paying a high-value home loan is often heavy on the pocket, that too for a long time. Fortunately, a few years back in April 2016, the Reserve Bank of India brought forward certain guidelines under which the housing loan borrowers could benefit from cuts in the interest rates. These guidelines are called MCLR, Marginal Cost of Fund Based Lending Rate. Understanding MCLR In simple words, Marginal Cost of Fund Based Lending Rate, is a home loan offered by banks, lenders, finance companies, but at lowest interest rates. The main aim of this scheme is to ensure that banks can pass on the benefits of cutting the loan rates. It was in 2010, that the base rate system was introduced by the RBI in the year 2010 as a replacement for the Prime Lending rate system. The base rate was the minimum interest rate that was fixed by banks. Below the set benchmark money could not be lent. However, RBI felt that the transmission of interest rates in this system was not very operative and the benefits did not reach the customer. Hence, to bring some positive transformation in the process, in April 2016 the MCLR system was brought about. MCLR in Home Loans MCLR is connected to the repo rate as well as the lender’s fund cost. And whenever there is a change in the repo rate, it would directly affect the floating interest rate on the home loans in India. Therefore, when the lender cuts down the MCLR, there would be a decrease in the floating rate of interest on the home loan. What should be kept in mind is that the decreased rate and MCLR would not affect the EMI that you are to pay, but it would surely have an effect on the tenure of the loan. Calculating MCLR For calculating MCLR the following components are to be kept in mind: Marginal cost of fund Operating expenses Tenure premium Cost of maintaining CRR, Cash Reserve Ratio It is also vital to consider the sources that lend funds to the banks. Most banks generally borrow from savings accounts, current accounts, recurring and fixed deposits etc. to calculate the marginal cost of borrowing, the borrower may refer to the interest rate of the corresponding sources. As per RBI, the following formula can be used to calculate MCLR,MCLR = Marginal borrowing cost x 92% + return on the net worth x 8% Keeping the following points in mind will help in comprehending the different aspects of Marginal Cost of Fund Based Lending Rate, MCLR: Under the guidelines of the RBI, banks must maintain a minimum CRR, cash reserve ratio, of 4%. These deposits do not fetch any interest to the banks Banks can also obtain a certain allowance called Negative Carry on the CRR Banks need to manage the operating costs The own-expenses of the banks such as employees’ salary, cost of raising funds, cost of running the branch office, opening a new branch etc. cannot be billed to the bank customer MCLR housing loans depend on: Tenor premium Marginal costs of funds Bank operating costs Negative carry on CRR [B-02] Summing Up As per financial experts, Marginal Cost of Fund Based Lending Rate, MCLR is a much better option when it comes to interest rate calculations. Every time there is a change in the REPO rate, the consumer can expect a benefit. Thus, giving the home loan borrower a respite in the form of reduced interest rates. However, it should be kept in mind that only the borrowers who have a housing loan on floating rates would be able to avail of this benefit. The fixed rates on home loans in India are not affected by MCLR.
Energy-efficient home design is no longer a trendy concept; considering environmental factors, it has become the new normal. If you are planning to take a home loan or home renovation loan to build or renovate your home, you must consider Energy-efficient Home Design Methods, which have been described in great detail in the following parts of this article. Energy Efficiency – What is it all about? Energy Efficiency refers to the various methods undertaken to save energy and to improve energy productivity, ultimately saving money. Energy-efficient homes are more comfortable to reside in and are more durable in the long term. Are you excited about saving money & energy? Follow the given energy-efficient Home Design Tips for Renovation. 1. Enhanced Building Insulation Insulations seem like a less advanced solution, but they are the most effective when it comes to energy savings. Appropriate insulation lining should be provided, suitable for summers and winters. A good insulation lining helps regulate the temperature of the home, reducing the power consumption of air conditioners in summer and room heaters in winter. 2. Energy-efficient devices-HVAC Systems When renovating, check all your electrical devices for their energy efficiency ratings. If any device is outdated, replace it with efficient devices based on the latest technology, as these devices consume less electricity and emit very little heat. Heating, Ventilation, and Air Conditioning (HVAC) systems form nearly 50% of energy consumption in residential apartments. So, installing an HVAC system with high efficiency would save you energy demand, reducing your monthly electricity bills. 3. Smart Lighting Fixtures Lighting fixtures form a major share of energy consumption. During the renovation, replace all the old incandescent light bulbs with Compact Fluorescent Lamps (CFL) or Light-Emitting Diodes(LEDs) as they have high energy efficiency, longevity, and low heat radiation features. These days, smart lighting fixtures are available that work on sensors and sense the presence of the humans in their proximity, which means they light up when you enter the room and automatically go off when you exit the place. These smart lighting fixtures can be installed on the terrace and at other appropriate places to save energy. 4. Captivating advantages of Solar Power As solar light is abundantly available, you can install solar panels on your rooftop to intercept the solar energy. Rooftop solar systems provide an alternative energy source that is eco-friendly and does not emit any greenhouse gases. It’s just a one-time investment with very minimum maintenance cost but, in return, gives you continuous savings on your energy bills. If you have taken a home loan and are planning to rebuild your house, keep the orientation north-facing so that sunlight enters the house for the maximum amount of time, reducing energy requirements in the daytime. 5. Upgrade Water systems in your home Water requirements are one of the most crucial requirements in your home. While planning renovation activities, strategic planning should be done to upgrade the existing water system. Rooftop rainwater harvesting systems or used water recycling systems can be installed to use water for irrigation and secondary uses. Existing hot water systems should be replaced with efficient heating systems based on new technology or rooftop water heating systems. The point to be noted here is that this saves the cost of excess water supply and a portion of your electricity expenses that could have been used to draw that excess water. Building your dream home demands significant cash flow. You can look forward to available loan options for your finance requirements. You can refer to Piramal Finance (PCHF), which provides dedicated services for housing loans, Home Construction Loans, and Home Renovation Loans. [B-02] In conclusion Energy-efficient practices should be incorporated into daily habits so that energy can be conserved not only for economic gains but also to protect nature and reduce pollution. Some basic steps that can be taken in this regard are checking for sanitary fitting leakages, switching electrical appliances off when not in use, and installing dual-flush toilet systems to conserve water.