Thursday, 21 January 2016
HOUSING loans are available in a number of different variations. There are introductory, variable and fixed rates from hundreds of lenders, with interest-only or principal & interest repayment methods. The features offered by each lender differ and there are a number of variations available to suit your mortgage needs. So how do you find out what will work best for you?#LOANS FOR B KHATA
1.Go in armed with knowledge about repayments and features that will suit your circumstances.
2.Consider the whole package. If a loan has really low interest rates, chances are the fee structure is high. If there are lots of features, it’s more than likely you’ll pay for them via a higher interest rate or more fees.#HOUSING LOAN FOR BKHATA
3.Structure is all important. To get the right loan, you have to ask yourself what your finance needs are and what are your ‘essential’ features. Your loan must accommodate your individual circumstances. If you’re buying your first HOUSING your loan needs to be easily manageable, especially in the first year. Taking out a HOUSING loan is a big change to your family finances so make sure you take the time to work out what you can manage.#HOMELOAN FOR BKHATA
4.Think about the size of deposit you can afford. It’s likely that you’ll only be loaned 80% unless you’re willing to pay for lenders mortgage insurance. There are lenders who’ll provide 100% loan to value ratio without insurance, but this will likely be due to a higher interest rate or greater fees in the long run.
5.Look for the ability to make additional repayments at no extra cost, and the ability to make repayments via direct debit, ATM’s internet and phone banking. It’s also a good idea to check if you can re-fix your interest rate at no cost, or split your loan.#BKHATA LOANS IN BANGALORE
6.Find the right lender. Often the best way is by word of mouth or consults a local lender or bank. Ask questions – make sure they will be available to help you and explain the process, do they have various loan programs to show you and will there be customer service consultants readily available post-settlement to help you with any changes or queries
7.Lenders are obliged to provide and explain the nature of their loans and fees so keep the questions coming. Ask about the total fees associated with the mortgage, and what fees are paid from beginning to end. A lot of people move out of their loan after three or five years so find out if there are any prepayment penalties and if there are exit costs. Ask them to set out ALL fees; if you say exit fees, they may not tell you about break, discharge or settlement fees. Remember, be particular with your questions.#CONSTRUCTION LOAN FOR BKHATA IN BANGALORE
8.A comparison rate can be very handy when understanding the true cost of a loan. While lenders may advertise what appears to be a very low rate, the comparison rate represents a truer rate – an advertiser with a higher advertised rate and a lower comparison rate could be a cheaper option in the long run. However, you still need to know the structure of your loan and all associated fees so compare that information, otherwise you might get burnt by hidden variable fees.
Wednesday, 13 January 2016
HOW TO CALCULATE HOME LOAN EMI
- With lower emi, Bank Home Loans are light on your wallet. Lower interest rate and repayment tenure of up to 30 years ensure a comfortable EMI for you during the entire loan tenure.
- You can estimate your EMI by using our feature rich Home Loan EMI Calculator.
- To reduce the EMI burden of a home loan that you have already taken from another bank or Non-Banking Financial Company (NBFC), apply here for balance transfer and save money.
- Opting for auto-debit facility on Bank Savings Account for paying Bank Home Loan EMI, earns you reward points that can be redeemed against exciting rewards from our partner.
Wednesday, 6 January 2016
What are B khata Sites?
B Khata sites in Bangalore are generally properties formed or developed on Lands without following the government rules and regulations such as BBMP, KIDB, BMRDA, BDA, TPA or any other respected authority coming under. These Layouts where the sites are formed without any by laws like road width, common amenities like Parks, Play grounds, CA Sites etc.
There layouts are generally formed without DC Conversion. In many cases one might come across layout formation done on Green belt lands which are reserved for agricultural purpose only. However there is huge price difference when compared to A Khata sites which are formed following all by laws like Land conversion from Green belt to Yellow Belt and then converted for residential use by obtaining DC conversion for formation of sites/plots/Multi floor apartment development.
Getting a Loan for B Khata properties
Generally one cannot get Home loans/Site purchase loans / Composite loans for B Khata properties from nationalized banks. However there are many private financial institutes that offer loans for these properties at much higher rate of interest when compared to nationalized bank.
Khata is a legal identification document for Bangalore residence and contains all relevant information for the purpose of tax revenue from the property. Khata is not a Title deed as the latter is an entirely different thing altogether. Khata is only an account with the authorities for proper monitoring of taxes that the property holders are liable to pay to them.
Although there are details like property owners name, size of property, location, built up area and other matters, it however do not hold good under law or the civic authorities that the property is under the ownership of that individuals. Again, the Khata has been divided into A Khata and B Khata for jurisdictional purpose and therefore the former comes under B.B.M.P while the latter under local jurisdiction. Apart from this the A Khata properties are regarded as legal authorized construction while the B Khata properties are unauthorized construction.
How to Apply for B Khata for your property..?
Usually those whose names are not entered in the B Khata properties are the ones that need to apply for B Khata. These are those property owners who are in residual category according to the civic authorities. In most cases those who are applying for B Khata properties are likely to be those people who own properties or are constructed on revenue land.
Monday, 4 January 2016
Gupta, a 46-year-old expert, had recognized the ideal plot of area to fabricate his home. With restricted investment funds in his record, he chose to approach a bank for a home credit.
The bank gave him the credit furthermore let him know of a reimbursement model that they felt would be perfect for him to pay his compared regularly scheduled payments (EMI). A couple of years down the line, be that as it may, Gupta understood that he couldn't manage the expanding EMI installments that his reimbursement choice indicated.
Remember, next to no is known not individuals about the diverse EMI reimbursement choices past what the banks prescribe to you when you take a home credit. Banks and home financing organizations, for example, SBI, HDFC, HSBC, LIC Housing Finance and others might have one or numerous alternatives that they might suggest as the right plan for you.
"The criteria considered by the credit giving organization incorporate age, pay, sparing history, instructive capabilities, work profile, number of dependants, sort of property (counting the manufacturer) et cetera," says Renu Sud Karnad, joint overseeing chief, HDFC.
This is what you have to think about distinctive EMI alternatives accessible in the event that you are wanting to take one.
To begin with things first. The straightforward guideline for all EMI alternatives is that the more extended the term of your advance, the littler will be your EMI.
The EMI additionally has two parts — chief and interest installments. The most widely recognized reimbursement alternative benefited of by most home credit clients is still the conventional ordinary EMI choice under which a settled sum is paid each month.
"With the sum to be deducted enduring, there is a normality to the remaining sum that is accessible for use. The clients can along these lines arrange their income," says Sudipto Sil, associate general administrator, LIC Housing Finance. Under a typical plan, nonetheless, the installment towards the central is very high and the sum towards hobby is similarly low, which viably implies an adequately high EMI.
The tweaked alternatives or the more current plans take a shot at the standard of lower central reimbursement and higher interest installment inside of the EMI. A few banks offer to structure EMI alternatives altogether around the requirements of their clients.
"A large portion of the choices are accessible just for experts, for example, specialists, legal counselors, sanctioned bookkeepers et cetera, given their inclination of expansion for this class," says Karnad.
Among the choices accessible, the progression up reimbursement choice is perfect for the individuals who imagine a development in salary over the span of their reimbursement plan. "This would be a decent choice for those toward the start of their vocation, with the likelihood of climbing the step," suggests Sil. While they pay lower EMIs at first, they are progressively ventured up at interims, which differ as per the term of the advance.
There are additionally the individuals who need to wrap up their advances in as short a period as could be expected under the circumstances. For such people , there is the alternative of quickening your EMI consistently in extent to your expansion in wage. The client then does not need to pay enthusiasm for the remaining term.
In addition, with the credit off his hands, he additionally has the opportunity to stop his cash in option speculation choices. In any case, the case may not be so with a somewhat more established individual, especially somebody close retirement or somebody whose reimbursement limit is liable to modify. One could take the instance of a couple with a home advance for a long time where the spouse will quit winning after the tenth year.
"In such cases, the adaptable credit portion arrangement makes a route for a man to pay a high EMI amid the prior years which then declines as indicated by the lessened wage," says Karnad.
EMI installments by and large start strictly when the whole credit sum has been dispensed. In the pre-EMI stage, the client is charged just basic enthusiasm on the sum dispensed. In any case, there are a couple of clients today who need to begin their EMIs on halfway dispensed advances and when their homes are still under the procedure of development.
This alternative is by and large alluded to as tranche EMI. "On the other hand, charge suggestions are altogether different from what is accessible for standard EMI installments," says Karnad.
Numerous individuals in India, on the other hand, take a home credit for the tax breaks included. The more drawn out the term of the advance, the more drawn out one can profit of the tax cuts. "Charge reasonings up to Rs 1 lakh are accessible on advance reimbursements. There is likewise a finding accessible if the house has been leased amid the time of the advance," says Bharat Dhawan, MD, Mazars India.
Clients who feel they can't pay the current EMI choice ought to converse with the bank to check whether they can change to another plan. sSome banks permit the clients to switch, if they have the validity of investment funds and can reimburse the advance as indicated by the new choice.
Friday, 1 January 2016
Your EMI contains of 2 components–the outgo towards principal quantity and interest. you'll claim a most of Rs one.5 100000 of the principal part of your EMI beneath Section 80C of the taxation Act.In case your principal outgo is a smaller amount than Rs one.5 lakh, you'll invest the balance quantity in an exceedingly tax-saving instrument to exhaust the limit. you want to bear in mind that you simply will claim the profit only if your home is totally made.Moreover, if you opt to sell your house among 5 years of occupancy, the deductions claimed throughout previous years would be treated as financial gain throughout the year of the sale of property and therefore the same would be reversed.
Under Section twenty four of the taxation Act, you're eligible for tax advantages of up to Rs a pair of 100000 for a self-occupied property. The cap of Rs a pair of 100000 is applicable if your family resides within the house or if your house remains vacant. Deduction is allowed on totally made house solely and you'd not be able to avail any profit on under-construction homes until the work is complete. within the pre-construction section, the interest outgo keeps adding up and you'll claim deduction thereon in equal installments for 5 years starting from the year of occupancy.However, the tax break is out there only if the development is finished in an exceedingly time-bound manner and gets completed among 3 years of availing the loan. If the development gets delayed, you'll be able to claim deduction just for Rs thirty,000 p.a..You have to be each the owner additionally because the co-borrower to say tax advantages. If your property isn't self-occupied however chartered out instead, there's no ceiling for deduction and you'll claim the complete interest quantity paid. However, whereas filing taxation returns, you'll got to show the rent of the house as financial gain.
How to calculate rental price
Step 1: Calculate total income.
Step 2: Deduct municipal taxes.
Step 3: Deduct another thirty per cent towards maintenance charges to urge the rental price.