Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Plots loan, loan to buy property
To buy a piece of land, you can be eligible for a plot loan, and not a home loan.Pooja Gawde
22 Apr 2008
You may be among the ones who prefer to construct your own house on a piece of land. To buy a piece of land, you will not be able to avail a home loan from the banks. Banks will offer what are known as 'plot loans' or land loans.
You can purchase a plot of land and construct the house immediately, or purchase a plot and wait prior to commencing construction.
Simply put, it is a loan to finance an individual's purchase of land. You could also go in for this loan if you do not want to incur an immediate cash outflow for purchase of land.
Not all banks or housing financing lending institutions extend land loans since there is difficulty in documentation and security of the property (risk of encroachments).
Most banks which offer these loans, insist that the land is purchased from a development authority or from a society.
Some banks also permit purchase of land from a developer. However, the land has to be developed and clearly demarcated for any bank to accept the proposal for land finance.
Plot loans are not available for purchase of agricultural land. Banks also don't permit loans for land already purchased and for purchase of land from an individual owner.
Getting finance for a plot is also difficult, because land can be purchased for speculative purposes, and valuation tends to be more difficult to assess.
Tax deduction benefits are not available on a plot loan.
In case of an under-construction property, tax deduction benefits will be available only from the financial year in which the construction is completed.
Interest rates on plot loans are about 2-3 per cent higher when compared to a home loan. Also, the loan tenure is smaller (up to 10 years) when compared to a home loan tenure.