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.
Loan against Property: Why do I need to show income proof?
Property is generally among the first assets people acquire. But, compared to other assets like, say, stocks, it's relatively illiquid, and poses a bit of a problem when you need quick cash.Apnaloan.com Research Bureau
14 Aug 2007
Property is generally among the first assets people acquire. But, compared to other assets like, say, stocks, it's relatively illiquid, and poses a bit of a problem when you need quick cash. However, many financial institutions now offer loans against property. So, when Anant Kumar, an engineer with a well-known company, needed a personal loan of Rs 10 lakh urgently, he decided to mortgage his flat for a bank loan.
But to his surprise, the bank asked him for proof of income. "If I am mortgaging my house worth Rs 65 lakh, why am I being asked for income proof for a loan of Rs 10 lakh only?" was his perplexed query.
The answer lies in the illiquid nature of property. It's not easy for the bank to sell Kumar's house to recover the loan, if he defaults. As property is not a standard product, its price may vary from area to area and with time. Also, banks will not find it easy to evict existing occupants from the house to sell it.
Therefore, banks prefer that you pay back the loan from your income stream and not by selling the security -- that is, the house. Thus, you need to submit your income proof when applying for loan against property.
Do remember that banks will not lend you the full value of the property. You can get only a certain percentage of the value of the property (40% to 60%) or between two and two-and-a-half times your current income, whichever is lower.