Section 80EE of the Indian Income Tax law allows first-time home buyers to get tax deductions on the interest they need to pay on a Home Loan. You can claim a deduction of up to ₹50,000 per financial year as per this section. You can continue to claim this deduction until you have fully repaid the loan. But where and how can you begin to benefit from these tax deductions? Read on...
Owning a joint property with a spouse provides numerous benefits such as better Home Loan terms, reduced stamp duty, tax benefits, easy succession, and many more. Continue reading to learn more about the advantages. Aspiring real estate buyers seek ways to reduce their purchase costs and own a home while saving money. Some effective methods include contacting the seller directly to avoid brokerage, taking out a home loan to claim...
Fixed deposits are the preferred investment instruments for many to save their money and get assured returns. It is a secure option for saving funds for future goals and financial emergencies. Most financial institutions offer multiple fixed deposit products to best suit an individual’s financial goals and preferences. Fixed deposit interest rates vary based on the financial institution, type of FD chosen, tenure, and even age bracket. Before delving into...
Summary: Property buyers and sellers frequently require clarification on TDS on Purchase of Property. Don’t be worried; you are not alone. This guide will walk you through the process with expert advice and step-by-step instructions. TDS stands for Tax Deducted at Source, which means that tax is deducted right at the source of income. As part of the Indian Revenue Service Department, the Central Board for Direct Taxes is in...
A Fixed Deposit Receipt is the document given to a depositor by a financial institution when they open a fixed deposit. It is similar to an invoice you receive when you buy something from a shop. Like a bill, it contains all the details about the fixed deposit. Contents of an FDR An FD Receipt or FDR is a substantiating document that mentions the amount of money deposited, the time...
Fixed deposits are a form of investment best suited for risk-free investors. It allows them to invest their money for a fixed period of time at a fixed interest rate. Fixed deposit interest rates are predefined based on the term. The interest rates are slightly higher for senior citizens, and the percentage is discretionary to the financial institution. Once depositors meet fixed deposit eligibility criteria and submit the documents...
As far as Home Loans are concerned, government employees enjoy easier access and special privileges than others. A stable job with a regular salary makes them low-risk borrowers for loan companies. It encourages many housing finance companies to offer them lucrative loan deals with low-interest rates and favorable terms and conditions. Special benefits and easier accessibility make Home Loans a better and cheaper funding option for government employees. Here are...
Most prospective homebuyers will eventually fund their purchase with some housing finance. Apart from providing financial support, getting a loan also has several benefits, like tax exemptions, savings kept intact, and improved credit scores. However, financial institutions can fund up to 90% of the property’s cost, and the borrower must pay the remaining amount as a down payment. The percentage of the home’s price that the lending institution funds is...
Having your own home is one of the most significant moments in a person’s life. Across the world, most aspiring homeowners do take home loans for financing their Homes. Institutions like PNB Housing provide quick & hassle-free Home Loans to eligible borrowers. If you’re looking for some financial assistance to buy a home without hassle, there are a few things you can sort out on your end and get your...
Buying a new home brings abundant joy, comfort, and security to most home buyers. Have you taken out a loan to finance your house as well? If yes, you will be happy to know your Home Loan also comes with many tax rebates. Section 24 of the Income Tax Act offers tax breaks to those who buy a house. These tax rebates are the government’s way of encouraging buyers to...
If you’re short of funds and need money urgently, what are your options? One is a Mortgage Loan, also known as simply – Mortgage. It’s one of the easiest and most popular financing solutions available in the market. Typically, mortgages are quickly approved and also have a lower interest rate. What is a Mortgage Loan? A Mortgage Loan is a secured loan where you place your residential & commercial property...
Summary: CERSAI charges ensure that applicants are not applying for several loans to get the same property. Read on to learn everything about CERSAI before applying for a home loan! Purchasing a house is a major investment that requires a significant amount of money. Most aspiring homeowners don’t have all the required capital from the get-go, and that is why many people opt for Home Loans to realize their aspirations...
Home Loans have a lot of attractive features- Home loan interest rates are usually lower, the eligibility criteria fairly relaxed, and the documents required for home loans are minimal than a personal loan or business loan. Borrowers can get up to 90% of the house’s construction or purchase value as a loan. The best part? You can apply for a tax rebate on Home Loan repayment. That is why people...
Summary: Home Loan Insurance secures borrowers who take Home Loans. Understand what it is and why so many people take it. Buying a home is a dream come true for many people. It is both an emotional and a financial milestone. If you have a large home loan and are concerned about who will repay it in the event of an unexpected event, it is time to learn more about...
Summary: Are you planning to take a 20 Lakh Home Loan? Read on for a complete guide on EMI calculation, eligibility criteria, repayment tenure, features, and other information on a 20 Lakh Home Loan. Buying or building a house is a rather challenging task, with many things needing to be factored in, some of them well in advance. The financial considerations required for building or buying a house are enormous,...
Summary: Joint Home Loans are a great way of getting the desired loan amount to build your home. Check out the article to learn about Joint Home Loans, their benefits, eligibility criteria, and documents required for application. Buying a home or constructing it from scratch requires massive investment, and a lack of proper financial planning can squeeze out all your savings. In order to fulfill your dreams of owning...
Summary: Part-payment of a Home Loan means repaying a portion of the loan before its tenure is over. Read on to know its uses and benefits. A part-payment on Home Loan means paying back a considerable portion of the Home Loan amount before the completion of its tenure. For instance, you have taken a home loan for Rs 20 lakh and are supposed to repay it over 30 years (the...
In any type of home purchase, whether with your own money or through a home loan, you have to pay certain fees and taxes. For example, loan processing fees or the cost of a technical appraisal of the property by the lender. Other examples of such fees and taxes related to home purchase also include franking or stamping. Are they both the same things? No, not at all. That is just...
‘CIBIL Score’ or credit score becomes extremely important when assessing home loan eligibility or taking any other form of a loan. Applicants must check their score and figure out if it is above a certain number to understand their eligibility, the likely ROI they will be charged and plan their loan accordingly. To the unaware, a CIBIL score might sound like marks obtained in an important professional examination. But that...
At some point in their lives, everyone wishes to purchase a home. Because owning a home is regarded as a sign of a settled life, everyone strives to obtain one. With rising real estate prices, not everyone can afford to buy a home. This is why they obtain a Home Loan in order to realise their dreams. Financial institutions provide a variety of Home Loans to meet the needs of different applicants. For example, one person may require a loan to purchase a home, while another may require a loan to renovate it. As a result, financial institutions have provisions for various types...
Thinking of scaling your business? Well there’s no better time than Diwali is there? All businesses need regular cash flow to fund their daily operations and upscale their processes as well. While you are absolutely right to depend on recurring revenue for your business to run smoothly, procuring new commercial spaces, buying official real estate, setting up a new factory, or simply growing operations, always require significant capital investment. This...
Commercial real estate is a rather reliable investment option, regardless of market cycles. The value of property in commercial areas by & large increases over time and so does the rent. A lot of investors see it as a long-term investment that generates regular cash flow through rentals and may fetch you higher value when you sell it off. With commercial property loan interest rates being lower than ever and...
Property tax is the annual sum that property owners are required to pay to state municipal authorities. This amount is used to maintain civic amenities such as roads, drainage systems, parks, and street lights in the surrounding area. Property taxes are typically levied on all types of real estate buildings, with the exception of central government properties, vacant properties, and vacant plots without any building attached. Types of Property Real estate...
Sometimes, after availing a home loan, borrowers feel their lenders are levying higher charges, such as higher-interest rates, prepayment penalties, poor customer service etc. In such cases, refinancing their home loan is a good idea. A home loan balance transfer or refinancing a home loan is an excellent way to reduce home loan liabilities. You may also think about refinancing your loan if a lender offers lower interest rates or...
Nobody wants to remain in debt, given a chance we all like to prepay our debts ASAP. Prepaying a home loan, however, differs significantly from prepaying other loans. A home loan has a variety of benefits that may make prepayment unappealing. You may save a few EMIs by prepayment, but you risk losing out on related tax benefits, investment benefits etc. and inevitably incur prepayment fees for your home loan....
The term “freedom” may have various meanings for different people. Freedom is for some people the capacity to travel anywhere at any time. For others, it can be financial independence. Individual house ownership, in our opinion at PNB Housing, is one of the most significant indicators of such independence. An independently owned home means freedom from the whims of landlords and steadily rising rent. A property is the most valuable financial asset and, if owned, it can add tons of financial security especially for...
The process of sanctioning a Home Loan is thorough and detailed. It essentially involves scrutiny of an applicant’s eligibility. That includes evaluating all the essential Home Loan documents required – right from KYC documents to income proof, income tax returns, credit reports and property documents. Since all these documents help the financial institutions verify an applicant’s creditworthiness, they evaluate how much of a risk it is to sanction a Home Loan...
Buying a home in this modern world is a dream for many individuals. With tremendous hard work of finalising the best property and proper financial planning, people apply for Home Loans to make this dream a reality. The home buyer begins repaying the loan amount in equal monthly instalments (EMI) after making a down payment. Despite having a home loan, individuals could require more funds in some circumstances. In such a...
New investors are flocking to Term Deposits, also called fixed deposits, which has long been known as a safe investment choice. While opening a Term Deposit is virtually simple, there are a few things to consider. Today’s blog has everything you require to understand Term Deposit, including its types, features, etc. What is a Term Deposit? A Term Deposit, also called Fixed Deposit (FD), is a deposit provided by NBFCs...
The acquisition of a home is a milestone in every individual’s life. To purchase a home, many times an individual uses financial assistance from a lender, this particular type of loan is known as a Home loan. As a part of the Home Loan process, Financial institutions or banks carry out tasks like document verification, pre-sanction inspection, legal operations, etc. for which they charge a certain fee. This fee is...
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. How Does Repo Rate work? Repo rates are one of the most critical tools that any central bank has in its kitty through which it exercises...
Today’s article will discuss what portion of your salary is considered when determining eligibility, what factors impact your eligibility, and how simple it is to apply for a house loan. Purchasing a home throughout one’s lifetime is regarded as a crucial step toward obtaining the status of ‘being settled’, particularly in Indian culture. However, with property prices out of reach for the employed people, this goal can only be realized...
It is normal to take out a loan when one needs money. However, if you already have a house loan, a top-up home loan, which is a loan obtained on top of your current home loan, is frequently the best option. While you can take out a different loan, for example, a personal loan, the conditions may be more expensive, and the application process may take longer. In addition, compared...
With so many different home loan options available today, the dream of purchasing or constructing a home for many is no longer a distant one. Interest rates have also dropped dramatically over the years, with lenders like us at PNB Housing offering competitive home loan interest rates. However, most lenders lend up to a maximum of 90% of your property’s worth. This has been mandated by the Reserve Bank of...
When we talk about some of the biggest and most important financial commitments of life, then purchasing a home is often always at the top of the list. The majority of people avail the facility of a home loan to fulfil this life-long dream. However, getting a home loan is not a one-day process. It involves a lot of steps, right from sending a home loan application to assessment to...
The fact that home loans have made life easy for millions of people in India is no understatement. It is a very affordable solution for anyone dreaming of owning a house or investing in a real estate property. Why? Because a home loan lets you pay the property cost in easy-to-manage EMIs. But do you get the entire property cost as a loan from your lender? The answer is no....
When you begin with a home loan process, you must have heard some terms on repeat. The terms such as CIBIL score for a home loan, minimum CIBIL score for a home loan, etc., keep on coming in the home loan process. So, what exactly is a good CIBIL score for a smooth and swift home loan approval? In this article, we have noted everything about the CIBIL score needed...
One of the most enticing perks of taking out a housing loan is the ability to save money on taxes. It also aids in the purchase of a fixed asset. If you obtain a home loan, you also become subject to tax benefits under the Income Tax Act Section 24 and Section 80C, 1961. Here, taking a joint home loan also brings many tax benefits to the table. The joint home...
The government has introduced many benefits to home buyers to ensure that the dream of homeownership is accessible to as many citizens as possible. One of the most significant benefits of owning a home is the tax benefits that come along with it. You can avail of tax benefits by several wise investments done over the years. Among them, tax benefits on home loans are a long-term investment that will...
In India, everyone aspires to land a decent job, earn a good salary, or start their own business and fulfil the lifelong dream of becoming a homeowner. Yet, with the rising cost of land and property, owning a home is easier said than done. If you work at a reputed firm and have a good annual salary package, then you can easily get a home loan without much hassle. But...
We all understand that paying off a home loan is a lengthy process that requires patience and planning. Every year of your tenure, you pay off a certain portion of the home loan principal amount along with the interest component. But how do you learn and track what portion of the loan amount you have paid so far, what is left, and other details? The answer is a home loan statement. ...
It can be challenging for many people to buy their dream home without adequate financial resources. A home loan is the best option in such cases because it gives people the freedom to own a home without paying for it upfront in one go. As per the agreed terms of the loan, one can pay off the entire loan amount along with the interest over a specified period. This is...
When you get a loan, you have to pay it back within a certain amount of time. As you might know, the principal amount and the interest are repaid over certain monthly installments. Here, wouldn’t it be better for customers to have some sort of chart that explains the installment schedule clearly? Of course. Which is where the loan repayment schedule comes into play. Simply put, the repayment schedule is...
If you are one of those looking to utilise the scheme to finance a housing unit for your loved ones, then you are at the right place. PNB Housing enjoys an affiliation with the government’s PMAY scheme since its introduction, thus offering you the interest subsidy as stipulated in PMAY’s Credit Linked Subsidy Scheme (CLSS). And the good news is that the PMAY Scheme is still due to arrive. As...
If we go by a popular saying, the three most important needs of every human being are food, clothes and a home. While the first two are bare essentials that one can afford rather easily, getting a roof above one’s head requires a hefty financial commitment. This is where home loans have emerged as the saving grace for tens of thousands of people. But there’s often a misconception that one...
A home loan is one of the most significant financial and emotional commitments one makes in an entire lifetime. A home loan comes with a significant financial implication as well as the home loan application journey involves a few critical documents too. To be better prepared for the loan journey, a home loan applicant needs to be well aware of the significance, content, and implications of all home loan documents....
Do you also dream of getting that perfect little house for you and your family? Are you still confused about all your available loan options? Do people have a lot of financial advice for you, but you cannot rely on them? Then come to the financial experts themselves! First things first, let us get the confusion out of the way. We are aware of the ongoing home loan vs. loan...
Everyone knows that paying off a home loan can be one of the most taxing commitments in our lives. That is because customers tend to opt for 15-20 years to pay off the entire loan. Imagine putting aside a certain percentage of your income every month without fail for such a lengthy tenure! As such, if you fail to plan, a high home loan EMI can negatively impact your financial...
We all dream of buying the best home possible. But, with property prices sky-high and soaring, turning the dream into a reality could be a step too far. Here, the good old home loan comes to the rescue. Taking a home loan can be a huge step. From the sheer amount of financial planning to the lengthy process of getting approved for one, a home loan can often sound overwhelming...
Are you wondering how much you’d have saved in terms of interest and principal amount if your existing home loan was at a much lower lending rate today? Well, you’re not alone. With home loan interest rates in India circling above 7% per annum since 2020, many like you are worried if they are paying too much. Given how hefty the outgo is on a typical home loan, even a...
Buying a home is one of the most crucial and landmark decisions you make in your lifetime. Everything about your home loan, right from the research, application, documents, and the lender you choose to go with, has to be perfect. Ample research and knowledge about the entire home loan process is the best way to avoid any surprises later. Bookmark this post right away if you are still in the...
A loan against property (LAP) is a secured loan that banks, housing finance companies and NBFCs provide against residential or commercial property. These loans are usually offered at a lower interest rate as compared to a personal loan or business loan and are disbursed at a reasonable time. Anyone with a pre-owned property can avail such loans, whether they are salaried or self-employed in a business or professional setup. The...
As a form of secured loan, this is available on more benign terms since the property papers are kept as collateral by the lender. Loan against Property (LAP) is a secured form of loan borrowed from a loan provider. As the name itself reveals, it is a loan given against property, which should be physical and immovable (residential/ commercial). A loan provider or lender can be a bank, NBFC or...
We all have a desire to travel and explore the world in our own way, and we often tend to put it under the carpet. This is because we think our income or savings will fall short of meeting the expenses and can derail our financial well-being. However, this does not hold true, and you can easily fund your travel plans through smart and planned investments without affecting your regular...
You may be familiar with the process of opening a new FD account at your bank using your savings or current account. But, it follows a different process, when it comes to opening a new corporate fixed deposit account. At a bank branch, where you maintain your account, you just need to submit a filled-in application form and a cheque to get a new FD certificate. But, at an HFC...
When it comes to investing your savings, fixed deposits turn out to be a natural choice for many. For decades, it continues to be one of the preferred choices of investment and is considered a sound investment avenue. So, let us examine all the features that make it an evergreen investment option. FD Gives Guaranteed Rate of Return: Once the funds are invested in a fixed deposit, the depositor is...
Fixed Deposits are one of the most preferred investment avenues for people of all ages especially senior citizens and parents of young children. The primary reasons being that it carries minimal risk and help in fulfilling both short and long term goals. Senior citizens, especially retired persons, can enjoy interest on their deposits on monthly, quarterly, half-yearly or annual basis depending upon their requirements. FDs come with the option of...
There is more to buying your dream house than taking a home loan and repaying the principal and interest over a fixed period of time. A home loan — often one of the most important decisions in an individual’s life — can be stressful and exhausting if the applicant fails to do proper research and read the fine print before signing on the dotted line. With a range of options...
India is among the few countries that offer high returns on financial investments in the global scenario and fixed deposit is one such instrument. With the count of non-resident Indians (NRI) soaring high with each passing day, many find it lucrative to invest their corpus back in India. Investments in fixed deposits, is usually preferred, amongst other Indian financial instruments, owing to low risk returns and as a hedge against...
Fixed deposits, more commonly known as FDs, are one of the most sought after instruments for investing money for a stipulated period in lieu offering good returns. FDs offered by corporates and housing finance companies (HFC) offer a pre-determined rate of interest and even render special schemes for some segments like senior citizens. This helps organizations to raise funds and deploy them for business intents while on the other hand,...
Once the final dues of your home loan are paid, you become a proud owner of a home. It is an exciting and emotional moment and a time for celebration. But, before you head on to celebrating, certain tasks in the home loan closure process need to be taken care off. Without these tasks the home loan closing process will be incomplete, which will lead to complications in the future....
Fixed Deposits (FDs) are the safest and most preferred investment option available to those averse to investing in risk instruments such as equity and mutual funds. FDs allow you to manage your financial risks and help fulfil your goals aspired for different stages of your life. These could involve securing your child’s future, his or her education and marriage, or as a hedge against unexpected expenses. Such deposits are also...
Necessity of additional funds over and above one’s income and savings is a common phenomenon, especially with rising requirements in current scenario. Although there are various ways of sourcing these funds, one much sought after way is personal loan. The quick sanctions and even faster disbursals makes it a lucrative way of availing funds. But, this is not the only loan of this kind. Loan Against Property (LAP) is a...
There’s no shortage of home loan providers these days. Banks, housing finance companies and NBFCs are constantly trying to pitch their home loans services, often confusing customers for choice. Given the many options available, it can be tempting to choose between home loan providers based on a single metric — the interest rate that’s being charged. Choosing based on the interest rate has its advantages: it’s comparable across providers, which...
It is one thing to dream of owning a home and quite another to actually buy one, since there are liabilities attached to it, especially if you are taking a home loan. It means committing a part of your monthly salary to repay the loan over several years. Once you decide that you can afford a loan, you have to look at other aspects, such as the loan amount you...
Pradhan Mantri Awas Yojana – The interest subsidy scheme CLSS (Credit Linked Subsidy Scheme) introduced by MHUPA (Ministry of Housing & Urban Poverty Alleviation) was announced by our honorable Prime Minister Sh. Narendra Modi with a vision of housing for all in 2022. Under the PMAY scheme, the Customer (i.e. the beneficiary) is eligible to avail interest subsidy on the purchase/construction/enhancement of a house. PNB Housing Finance offers “Credit Linked...
Buying a home which you can proudly call as your own is a life-time experience. It requires a lot of planning by the family members about the exact necessities and research about prospective home and its developer etc. Once these are done, you finally require finance to buy your dream home. While planning about the necessities and identifying a right home may take some time, you should do another homework...
Home is where the heart is, goes an old English idiom. Indeed, for many of us, our homes will always be the place for which we feel the deepest affection, no matter where we are. A home is also one of the most important assets that we invest in our lifetime. Given the high real estate rates in most urban centres across the country, buying a home is quite capital...
We often wait for a perfect time and situation to buy or invest in something that is of significance to us. Careful planning is a must but sometimes, we wait for far too long for that right moment and in the process miss the opportunity. Buying or investing in a home for yourself demands diligent and careful planning too, in terms of your current and expected future financial situation, your...
One spends a lot of money when living in rental accommodation for years. The rising real estate prices in the country might make the home loan purchase difficult if one defers the plan of purchasing. Hence, it is better to avail a home loan and buy a house when one is quite young. There are plenty of reasons that differentiate a home loan offer for an early buyer vis-à-vis a...
Owning a home isn’t just a keystone of wealth, it’s what gives us and our families, stability and emotional security. If you’re hesitant about buying a home because you feel that getting a home loan is a daunting task. Don’t worry! Applying for a home loan is an incredibly simple process. If you take care of a few important details at the very beginning, securing a home loan is easy....
A home purchase is probably the biggest financial decision and transaction in a person’s financial life. It is a decision that has an impact for many years to come. It is also a transaction that requires planning around your income outflow for many years to come. A home loan is a prolonged financial commitment that typically stretches for 20 to 30 years during which time, interest rates can change, depending...
Buying a dream home isn’t something you do every day. The same goes for your home loan. It’s a big financial decision, and will affect your wallet for a long time after the purchase is over. Which brings us to the matter of choosing the lending institution. How do you go about it? It is important to give it careful consideration. After all, there’s much more to a home loan...
A home loan helps you realize your dream of having your own home. A home loan comes with its own financial commitment, in the form of EMI (Equated Monthly Installments) that has to be serviced by you diligently over the tenure of the loan. It is important that you strike a fine balance between your monthly EMI commitments and Loan Tenure. Now first, What is an EMI? EMI is a...
Should you rent a house or should you buy one? Is it better to pay EMI than pay rent? Well, the answer cannot be simply a ‘yes’ or a ‘no’; the argument continues and there is merit in both the views. The choice would depend on a variety of factors unique to every person’s life. Here is a deeper look into both the options, with the objective of choosing the...
When you act responsibly with your finances and make your payments on time, your credibility, which is what the CIBIL Score is all about, will improve and so will your credit worthiness. Anyone who has purchased a home on a loan will advise you to check your CIBIL Score aka Credit Score even before you consider applying. This all-important CIBIL Score is simply a rating assigned to a loan applicant’s...
Your portfolio should contain a diversified set of investments for optimal performance. While you would have invested in shares, mutual funds, bonds and bank fixed deposits, company deposits is an investment option that you may have overlooked. Here is why you should consider company deposits as well: Diversification: Fixed and safe returns in an investment portfolio play a key role in limiting portfolio risk. When you have predictable returns, you...
Company Fixed Deposits (FDs) may offer a higher rate of return than normal bank deposits. As a part of diversification of your portfolio, it is advisable to invest in company FDs. But you have to be look for a few important things before you invest Here are 5 things that you must look for before you pick a company FD: Credit Rating: A rating is assigned by a rating agency,...
