Everyone dreams about having their own home. They strive to save up and try their best to own a property. A home is where you rest after a long day. It is a place you call your own. However, not everyone can save up the bulk amount needed to purchase a home. This is where home loan come into play. People are often scared to take a loan. They feel these loans are excruciating and an added stress. Well, it is true loans can be stressful, but they can also be helpful.
So what is home loan? it is available for the purchase of a new house or flat, or even a plot of land on which to build a house, as well as to renovate, extend, and repair an existing house. These loans help the public to fulfil their dream of owning a house. Not all of us can afford to pay for our homes right away. These loans are easy to apply for and get approval in less time too. Everyone needs to check the market before blindly applying for a loan. For instance, Axis Bank offers home loans at a fixed rate of 12% for both salaried and non-salaried individuals. Its loans start at Rs.3,00,000.
Benefits of Taking a Home Loan
Let’s have a look into the benefits:
Income tax benefits on home loan
The largest benefit of taking a domestic loan is the Income Tax advantage that you could avail yourself of. You could claim those tax advantages on interest and foremost repayments. You can also avail of round Rs.1.5 lakhs on the primary outstanding balance consistent with Section 80C. Further, you may also claim around Rs 2 lakhs on interest payments according to section 24B. Moreover, you can additionally claim Rs. 2 Lakhs in interest compensation in case of special occasions 80EE and 80EEA, and up to Rs.1.5 lakh on expenses for stamp duty as per 80C.
Lower interest rate
Home loan interest rates are a whole lot lesser compared to instructional loans or every other loan. If you ever come upon a monetary crunch, you can also get a top-up loan on the present mortgage at a completely low-interest fee.
Verifying the documents
When you go to a bank to assist you with buying a house, the bank necessarily will conduct many background checks on you to see that all the documents are valid and proper. These due diligence checks from banks are from a legal perspective and can determine the chances of getting a loan sanctioned, for you. Once you apply to a bank to buy a house, the bank can perform a detailed check on the house or property that you will be buying. This is all part of the legal process to make sure that the documents are valid. These diligence checks by the bank can cut back the chance of any kind of scams. Once the bank approves the property, meaning you and your house are safe.
Longer repayment period
Compared to other mortgages, these loans have a longer payment period. You can easily repay these credits in 20 to 30 years. This depends on the substantial amount of loan amount. Borrowers are relieved and their monthly EMIs get lower when they spread the loan amount and the interest over a longer term.
No penalty on prepayment
You can also get variable rate mortgage loans. So, if a loan is based on a floating interest rate, you will be able to repay it early by gathering a big sum of the loan without worrying about the early payment penalty. This feature will help with completing your home loan before the loan term expires.
Swift loan transfer feature
You without difficulty can switch the house mortgage from one bank to another. You can do it for numerous motives like differential interest rates, consumer service, overall experience, etc.
Home loans are challenging to eligibility standards made clear by a particular bank. Credit histories are the primary issue banks examine to deciding on compensation habits. A common credit score rating of a minimum of 750 is preferable. Other critical elements taken into consideration are as follows:
- Type of employment
- The common earnings of the applicant
- Margin requirements, liabilities, assets, and how stable is your job.
- The residential status i.e if you are an Indian or an NRI
Home loans offer a lot of benefits. However, it depends on the lender or the bank. Find out about the eligibility criteria for a home loan below:
Salaried individuals eligible for a home loan
Persons with permanent employment in government agencies or reputable corporations, fall into the mortgage eligibility category. Applicants must be over 21 years old when applying for the loan and around 60 years old when the loan matures. You can use Home Loan EMI Calculator to determine your eligibility for a better understanding.
Professionals eligible for the mortgage
Professionals such as architects, dentists, doctors, engineers, cost calculators, and company secretaries are eligible. Mortgage loan eligibility criteria include applicants being at least 21 years of age at the commencement of the mortgage loan and at least 65 years of age at the time of mortgage repayment.
Self Employed eligible for a Home Loan
Anyone who can file an Income Tax return can also apply for a home loan. Use the mortgage lending calculator to determine the eligibility criteria.
How to Apply for a Home loan?
If you are interested in obtaining a home loan, you can check out the eligibility criteria from the comfort of your own home. You can access this facility online at most banks or financial institutions. To make the process a little easier, we have brought the following step-by-step instructions:
On the home loan eligibility calculator, enter some basic information such as your contact information, your city, and your date of birth. Choose the factors that are most important to you, such as:
- The total income of the applicant
- Loan tenure
- The fixed or floating interest rate
You can weigh your options and choose the best housing loan based on the eligibility criteria ascertained by the bank. This will offer you the convenience of availing of the most affordable EMI options and ensuring timely repayment.
Few things you can do to uplift your home loan approval rate:
- Pay your bills on time to increase your credit score
- Have all your financial documents handy
- Gain knowledge about various banks and their loan trends
- Keep collateral security handy
- Have a stable job
Purchasing your dream home is a landmark which is considered very crucial for your financial stability. Therefore you must take all possible measures to make it a hassle-free and smooth experience. When you are taking steps to make yourself financially ready to invest. You can always consider home loans to simplify your life, without investing a huge chunk of your savings. However, you must go over all the details related to home loans and conduct intensive research on every aspect. Your very first step should be to ensure that you are eligible for the loan before applying for it. We hope that the article was useful and you have finally made up your mind.
What Important Features Of Broker Advisors Are Necessary To Earn Trust
What Important Features Of Broker Advisors Are Necessary To Earn Trust
Many healthcare practitioners are not very serious about securing financial support through disability insurance. It underlines the need for a disability insurance awareness month to highlight the significance of planning some protection in the event of a debilitating illness or event.
Being clear about the role of broker advisor
The primary role of an insurance broker advisor is to explain the vital benefits of disability insurance plans to the healthcare practitioners, as these professionals are not aware of the critical consequences of missing the monthly payments. Some employers cannot understand the long-term repercussions and purchase a cheaper plan for necessary protection.
Research shows that 46% of professionals working in a marketing agency in California appear to lose their ability to work because of an ailment or accident. The physical and mental strain can easily lead to chronic health issues that can be detrimental to their work.
We should consider the disability concerns of individual healthcare practitioners while recommending insurance plans. Most of the time, group disability plans may not offer proper coverage to the individual practitioner in the event of a disability.
Insurance broker advisors should therefore offer the right disability insurance to protect the personal needs of the physicians. There is no point in promoting disability products that are cheap only to secure a quick business. The strategy may not be appropriate for the client and the broker advisor. One must explain the implications of settling for a cheaper disability policy and convince the client about the range of benefits for a slightly higher premium.
Consideration for top earners
Most people working in companies offering SEO in Farmingdale, NY earn considerably higher wages that surpass the limits of traditional disability insurance plans. The top limit disability insurance is a go-to option for these professionals. These policies can secure the high earning capacity in the event of any disability.
The essential feature of top limit coverage plans is studying all income sources of individual healthcare professionals. It can help top earners secure their income level despite any disability.
Skills of a broker advisor
Broker advisors should be easily accessible to their clients. Communication is the foundation of any relationship. You will gain the confidence of your clients if you satisfy their queries. Pointless to mention, you must act fast to address their grievances.
Carefully listening to the client’s concerns is a necessary skill of any broker agent advisor. You can only understand the exact requirements of your client by understanding every minute detail. Patiently listening to the client can help the advisor gain the confidence of the client.
The broker advisor’s approach should be to design a solution that addresses the needs and disability concerns of the client. You will earn the trust and confidence of customers if you are explaining the pitfalls of the policies and recommending the right products.
An in-depth review of your client’s financial strategy and offering suitable disability income insurance should be a priority of any broker agent advisor.
Guide To Disability Income Insurance
Getting into dentistry is quite expensive in the United States and can cost close to $300,000 in student loans. Therefore, you begin your career as a dentist with a sizable debt and hope to pay it back with interest through hard work. Unfortunately, life is full of uncertainties and you never know when you could face disruption in your career that can unsettle your normal life. This can come in the form of a disability that prevents you from doing your work. As a dentist with such a huge debt to repay, if you don’t work, how will you earn to live and repay your debt? Relax; you can go for disability insurance to cover such a risk.
Disability is real; don’t overlook the risk
As a young dentist, you can be excused for being exuberant enough to say that dentists don’t suffer disability because there is no risk of accidents or collisions at the place of work. Even if you set aside accidents or collisions at your workplace, can you overlook chances of contacting a freak infection from a patient you’ve treated?
If the infection results in a medical condition with a long recovery time of say, a couple of years, how are you going to deal with that situation? As for accidents or collisions, nobody is immune from a mishap in the world we live in. If the risk is such that it prevents you from working for a long time, then investing in a doctors disability insurance is a smart idea any day.
Young people must cover against disability
The ‘young and restless’ are particularly prone to suffer disabilities mainly because of the kind of lives they lead. Studies have shown that one in every four youngsters in their 20s is likely to suffer some kind of disability. People working in a marketing agency in Georgia are no exception to this unfortunate reality.
However, it is not just the young dentists who need to cover against the risk of disability but dentists of all ages. If you realize the significance of a physician disability insurance early in your career then you need to worry less about the cost of such coverage as you grow older. As with all other insurance policies, there are benefits for long time customers.
Get optimum benefit from your policy
The fine print in insurance policies is what you need to watch out for when making the investment. When you choose disability insurance make sure to choose ‘own occupation’ like if you do SEO in Yonkers, NY, you should search for the best disability insurance for SEO workers rather than ‘any occupation’. It could end up depriving you of the benefits for which you made the investment.
The reason for doing so is to ensure that in the event of disability, the provider doesn’t categorize your disability to be mild enough for you to do other types of work. In that case, your claim for benefits could be rejected. As a dentist, you want coverage against disability in discharging your duties as a dentist.
To get the optimum policy for coverage against disability, your own research is important but you also need guidance from a reliable disability insurance broker. Speak to friends and relatives if they know any broker who can be trusted to advise you on the best policy to opt for.
Small and Mid-Sized Businesses are increasingly Accessing Direct Funding￼
Ever since the Great Recession of 2008, traditional lenders such as banks and other financial institutions have heightened their risk perception for small and mid-sized businesses. It is almost as if these businesses are solely to blame for the crisis, which was mainly due to the faulty lending and recovery practices of the major lenders. As a result, the source of credit for the small and mid-sized businesses dried up to a point that it began to negatively impact the growth of these businesses. That was when direct lending companies stepped in to fill the gap although they have been around for quite some time. These lenders came with the clear objective of solving the borrowers’ problems and work around them.
Easy access to unsecured funds
Most small and mid-sized businesses have funding requirements that are proportionate to their size. It’s not that a business with revenues of $1 million would seek $10 million of business funding. The companies providing such direct modes of credit are as professional as any other financial institution and they will reject such applications.
The quantum of funding that the small and mid-sized businesses seek is small enough to be covered by unsecured funds. The direct lenders do not ask for collateral on fixed assets to secure the debt. They assess the risk of lending to a borrower on a different set of parameters.
The borrower’s credit history doesn’t count
Another major hurdle that small and mid-sized businesses face when seeking business capital loans from major lenders is approvals based on past credit history. Most of these borrowers don’t have a picture-perfect credit history and hence their applications get rejected.
However, when they apply to direct lenders for small US business funding, on most occasions their credit history is not taken into account while approving the loans. That is because these lenders mainly consider the viability and profitability of the borrower’s business and whether it is good enough to repay the loan with interest on time.
Capital expenditure funding
Small and mid-sized businesses generally grow quite steadily but some of them are eager to grow faster than others. Many of these companies go on to become huge corporations and there is no shortage of examples in this regard. Unfortunately, the traditional lenders in their obsession to be risk-averse refuse to see even this history of growth in which they had played a significant part.
Going by the business climate and the risk perceptions about small and mid-sized businesses among traditional lenders, they won’t get any funding from such sources. However, they will get direct funding for their growth and expansion-related capital expenditure. Depending on the quantum of the loan, it may or may not be unsecured.
Small and mid-sized businesses account for over 44% of all economic activity and 40% of the GDP of the United States worth over $6 trillion. Denying credit to them on the pretext of higher risk perception and overlooking a market of this size is not a wise idea and there would always be other players to fill the gap. Small and mid-sized businesses now are increasingly getting their funding from direct funding companies and before long it would become their primary source of credit. Business funding
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