Loan
5 Things to Know if You’re Interested in a Reverse Mortgage
Jan 30th
Photo courtesy: prakhar
What is a reverse mortgage?
A reverse mortgage, as the name suggests is opposite of normal housing loan (mortgage) and is available only to senior citizens.
How does it work?
Once you pledge your house for reverse mortgage, the bank after carrying out its due diligence will arrive at the value of the house. After creating the room for interest cost and price fluctuations, the bank will disburse the balance amount to you depending on the payment amount you choose. Continue reading “5 Things to Know if You’re Interested in a Reverse Mortgage” »
Home Loans: Joint ownership
Jan 17th
Photo by: kevindooley
Tax benefits on home loans have turned out to be an important aspect of home buying . Here is how you can benefit from the same.
Tax breaks
For self-occupied house property, the annual value of the house property is considered to be nil. Further, an individual could claim a deduction for the interest paid on the home loan (for purchase or construction) up to Rs 1.5 lakh, subject to certain conditions. This would result in a loss under the head house property of up to Rs 1.5 lakh, which could be set off against other income. If the property is let out, the actual amount of housing loan interest, without limit, could be claimed as deduction. Also, an individual can claim a deduction up to Rs 100,000 for re-payment of the principal amount U/S 80C of the Income Tax Act, 1961. Continue reading “Home Loans: Joint ownership” »
Access to Your Own Credit Report
Nov 8th
Did you apply for a loan but the bank turned it down without giving you sufficient details on why they turned down your application?
The Reserve Bank of India has been receiving a number of complaints, including under the Right to Information (RTI) Act, 2005, that customers are unable to get their own credit report from the banks. Continue reading “Access to Your Own Credit Report” »
Buying a plot of land?
Sep 13th
photo by demibrooke
Buy land. They’ve stopped making it. – Mark Twain.
Banks and housing finance companies (HFCs) in India provide loans for purchase of plots (land). Usually, the banks/HFCs insist that the plot of land is purchased from a recognized authority like a development authority, from a society, or from a recognized developer. Financing purchase of plots is a bit risky because of difficulty in documentation. Continue reading “Buying a plot of land?” »
Document Checklist for Loans
Jun 1st
The application for the home loan is a very simple procedure. Most banks offer a home banking facility wherein the bank’s executive visits you at a convenient time, at your home or office. He liaises between you and the bank, also suggesting schemes, added benefits, interesting insurance policies and educating you on the best rate of interest. However certain homework is essential about the interest rate offered by other banks for a comparative analysis and also enquiring about hidden charges in processing fees and penal interest.
Here’s a ready reckoner for the list of documents to avail home loans.
FOR SALARIED APPLICANTS
- Photographs of recent nature. The number of photos specified by the bank.
- Identification with photographs in the form of Election Identity Card/ PAN card/ valid driving license/ valid passport.
- Form 16 with current employer. In case of change of job (in an assessment year) then it is necessary to submit Form 16 from both the employers.
- Exact proof of address is done with Passport/ telephone bill/ electricity bill/ agreement of house rent in case of rental residence.
- The salary slips of the past three or six months has to be submitted to the bank in original, which features the salary statement for the past six months.
- The initial cheque for the processing fee favoring the bank has to be submitted for processing the loan. Continue reading “Document Checklist for Loans” »
Need Money For Short Term? Try Secured Loans
Apr 4th
A friend of mine recently applied for a personal loan from a leading bank and was shocked to know that she would be paying almost 50% of the loan amount as interest, spread over a period of 5 years. The purpose of this personal loan was to settle some outstanding credit card dues. Agreed, the rate of interest on a personal loan (16-22% per annum) is lesser than that of a credit card (35-44% per annum). But is a personal loan the only way out? Nope. Continue reading “Need Money For Short Term? Try Secured Loans” »
Black Money Saves Our Financial Sector
Apr 3rd
India has experienced a real estate boom in the last few years whereas the US had its share of a real estate boom but as of today their financial sector is in crisis. The share prices of real estate companies in India have fallen. There is a bearish sentiment in the Indian stock market, so does that mean the Indian financial sector too will face a similar crisis? Continue reading “Black Money Saves Our Financial Sector” »
Reducing Debt Load with Short Term Loans
Mar 25th
Most Americans have an enormous debt load. Many of them feel that this fact is simply a part of modern living. With the focus of consumers more and more on credit as a form of currency, it can seem downright impossible to reduce debt load. However, there are ways to do this, including short term loans such as a cash advance. The key thing to remember is to do it responsibly. Continue reading “Reducing Debt Load with Short Term Loans” »
