Members: 0 member(s)

Shares ?

0

Clicks ?

0

Viral Lift ?

0%

Business 493 views Apr 04, 2018
How to Calculate the EMI on Your Home Loan

Are you planning for a housing loan but aren’t sure which bank to approach? You aren’t the only one to have doubts. No-one wants to end up paying excess as housing loan EMI can exhaust their funds midway. Your confusion may be over whether the bank is charging you a fair amount or not. But help’s at hand. A Home Loan EMI calculator can come to your rescue.

Benefits of using Home Loan EMI Calculators

You can manually calculate the equitable monthly instalment, also known as EMI. But that can be quite a task. This is the reason why an EMI calculator should be your go-to tool. This helps you to:

  • Determine the approximate monthly instalment
  • Deduce the loan amount you are eligible for
  • Understand how loan payments work
  • Compare the monthly instalments of loans from different lenders

 

A Home Loan interest calculator can also assist you in:

  • Planning ahead
  • Evaluating your repayment capability
  • Understanding the loan eligibility criteria
  • Saving time by providing instant results
  • Getting a hassle-free estimate
  • Yielding zero cost

 

Inputs Required to Calculate EMI

Taking a Home Loan isn’t that simple. It involves spending a hefty amount and requires detailed planning. You must start with proper research. A Home Loan eligibility calculator should be the first step of your research.

The basic inputs required for using a housing loan EMI calculator are:

  • Loan Amount: This is the sum you borrow from the lender. You can also refer to it as the principal amount. This depends on the valuation of the house. You cannot borrow more than 80% of the cost of the property. The down-payment matters too, as does your repayment capability.
  • Rate of Interest: This can be a fixed rate. Here, the rate of interest remains the same throughout the tenor. Or, it can be a floating rate of interest. That is, the interest rate changes with a change in base price. Note that the rate varies from one bank to another.
  • Tenor: It is the period over which you repay your loan. You are free to choose the tenor you are comfortable with. Home Loans come with longer tenors, from 20 to 30 years.

 

Once you get all these inputs, you can take the help of an online EMI calculator. You can choose to use Bajaj Finserv’s Home Loan calculator as it is reliable and user-friendly.

Let’s assume you want to buy a property worth Rs.40 lakh. You’d need to make a down payment of Rs.8 lakh. That means you’d have to take a Home Loan of Rs.32 lakh. So, when you use Bajaj Finserv’s online Home Loan calculator, you’d have to select the loan amount (Rs.32 lakh in this case), the interest rate (let’s assume 10%) and the duration of the loan (say 10 years). The calculator will display the EMI in no time. You will find out that the monthly instalment will be Rs.34,387.

The following formulae are for those who want to do the math by themselves:

  • For calculating on Microsoft Excel, you need to use the formula ‘PMT (rate, nper, pv)’.

Here,

  1. Rate = the rate of interest
  2. nper = the number of periods (years)
  3. pv = the loan amount

 

For instance, Natasha needs a loan of Rs.20 lakh for buying a property. She wants to find out her chances of getting one. She opts for 8% interest rate over a period of 20 years. Moreover, she wants to repay on a monthly basis. So, she divides the rate and multiplies the tenor by 12. Natasha keyed in the values in the required boxes in an Excel sheet under the formula section. Here, the rate is 8%/12, nper is 20*12 and pv is 20lakh. The Excel sheet will tell you that her EMI will be Rs.16,728.80.

  • The mathematical formula ‘EMI=p*r*(1+r)^n/((1+r)^n-1)’ can also serve the purpose. Use a calculator and do the needful.

Here,

  1. p = the loan amount
  2. r = the interest rate calculated on a monthly basis. You will get it by using the formula ‘r = (rate/12)*100’
  3. n = the tenor in months. Hence, n = total tenor*12

 

Apply the same data as in the previous example and you will get the same result.

Evade the hassles of calculating your housing loan EMI by using the Bajaj Finserv Home Loan EMI Calculator that can save your time and compute the EMI amount. It is fast, simple and efficient. Once you know your EMI amount, you can progress to the next stage of choosing the right lender.

 



Aman Khanna 's Entries

9 blogs
  • 08 Oct 2018
     - PMAY scheme introduced in 2015 to provide houses at subsidized interest rates  - Affordable housing extends to women and minorities  - Partnerships with the states and developers  - Potential homeowners can save through tax exemption as well Introduced by the Indian Government back in 2015, Pradhan Mantri Awas Yojana (PMAY) is an initiative launched to provide ‘Housing for All’ by the year 2022. It is targeted to create affordable housing solutions in India along with sanitation, water supply and electricity. Apart from this, PM Awas Yojana offers financial support to the lower income groups (LIG), Economically Weaker Section (EWS) as an incentive to own a home. The support varies from full grants, partial grants to subsidised loans, depending on the income slab, they fall under. The PMAY scheme is split up into four components. These are listed as follows: In-situ Rehabilitation: The first component revolves around individuals residing in slums or slum dwellers. The scheme aims to develop the slum areas by partnering with private developers. Credit Linked Subsidy Scheme (CLSS): The scheme has a provision to give a credit-linked subsidy to weaker and mid-income sections of society when they take loans to purchase land or modify an existing home. Affordable Housing in Partnership: The government will offer financial assistance for housing projects at an affordable rate. It is applicable for those individuals who have neither a piece of land to construct a home or the funds to get a Home Loan. Beneficiary Led Construction: It is applicable to individuals who already have a piece of land and are looking to renovate. Subsidized Interest Rates The government offers a subsidy of 6.5% on loans taken on total amounts less than Rs.6 lakh. This is applicable to homes where the annual income does not exceed Rs.6 lakh. While an individual whose household income comes within the bracket of Rs.12 lakh, the government offers a subsidy of 4% on the loan amount up to Rs.9 lakh. A subsidy of 3% is offered on a loan amount up to Rs.12 lakh to individuals whose annual household income does not exceed Rs.18 lakh. Long Tenor The loan tenor was extended from 15 years to 20 years to provide ample amount of time and keep the EMIs low and affordable. No Processing Fees Banks or housing finance companies do not charge any processing fee for applications filed under CLSS. Preference to Minorities Under the scheme, women are given preference. This preference extends to widows, single working-women, persons belonging to scheduled castes and scheduled tribes, backward classes, differently abled and transgender people. Tax Exemption With the aim of providing housing at affordable rates for all, the PMAY is exempt from tax to a certain extent. As per the Income Tax Act of 1961, Indian residents are eligible for Home Loan tax benefits of Rs.2 lakh on the interest amount and Rs.1.5 lakh on the principal amount. This exemption is over the PMAY subsidy.
    407 Posted by Aman Khanna
  •  - PMAY scheme introduced in 2015 to provide houses at subsidized interest rates  - Affordable housing extends to women and minorities  - Partnerships with the states and developers  - Potential homeowners can save through tax exemption as well Introduced by the Indian Government back in 2015, Pradhan Mantri Awas Yojana (PMAY) is an initiative launched to provide ‘Housing for All’ by the year 2022. It is targeted to create affordable housing solutions in India along with sanitation, water supply and electricity. Apart from this, PM Awas Yojana offers financial support to the lower income groups (LIG), Economically Weaker Section (EWS) as an incentive to own a home. The support varies from full grants, partial grants to subsidised loans, depending on the income slab, they fall under. The PMAY scheme is split up into four components. These are listed as follows: In-situ Rehabilitation: The first component revolves around individuals residing in slums or slum dwellers. The scheme aims to develop the slum areas by partnering with private developers. Credit Linked Subsidy Scheme (CLSS): The scheme has a provision to give a credit-linked subsidy to weaker and mid-income sections of society when they take loans to purchase land or modify an existing home. Affordable Housing in Partnership: The government will offer financial assistance for housing projects at an affordable rate. It is applicable for those individuals who have neither a piece of land to construct a home or the funds to get a Home Loan. Beneficiary Led Construction: It is applicable to individuals who already have a piece of land and are looking to renovate. Subsidized Interest Rates The government offers a subsidy of 6.5% on loans taken on total amounts less than Rs.6 lakh. This is applicable to homes where the annual income does not exceed Rs.6 lakh. While an individual whose household income comes within the bracket of Rs.12 lakh, the government offers a subsidy of 4% on the loan amount up to Rs.9 lakh. A subsidy of 3% is offered on a loan amount up to Rs.12 lakh to individuals whose annual household income does not exceed Rs.18 lakh. Long Tenor The loan tenor was extended from 15 years to 20 years to provide ample amount of time and keep the EMIs low and affordable. No Processing Fees Banks or housing finance companies do not charge any processing fee for applications filed under CLSS. Preference to Minorities Under the scheme, women are given preference. This preference extends to widows, single working-women, persons belonging to scheduled castes and scheduled tribes, backward classes, differently abled and transgender people. Tax Exemption With the aim of providing housing at affordable rates for all, the PMAY is exempt from tax to a certain extent. As per the Income Tax Act of 1961, Indian residents are eligible for Home Loan tax benefits of Rs.2 lakh on the interest amount and Rs.1.5 lakh on the principal amount. This exemption is over the PMAY subsidy.
    Oct 08, 2018 407
  • 08 Aug 2018
    Buying a home stands among one of the major decisions of life that anyone takes, and if you are funding it with the help of a Home Loan, you need to know some vital steps. Once someone decides to buy a home using the housing finance option, the first thing that comes to his/her mind is – how to apply for a Housing Loan? If you are thinking of purchasing your dream nest, then this post will help you with some key aspects of availing a Home Loan. What is a Home Loan? The Home Loan is a unique facility offered by known banks, non-banking finance companies (NBFCs), and home financing companies to help people buy a home. Depending upon your Home Loan eligibility, one can easily avail an online housing loan these days up to Rs.3.5 crore. Lenders also offer lower interest rate along with wider tenor to help repay the loan in small EMIs. You can also utilize online tools such as the Housing Loan EMI calculator and eligibility calculator. These tools help in determining the loan EMI and eligibility before availing the loan.                                                         How to Apply for a Home Loan Tips Start Saving for Down Payment – The first step that will take you towards your Home Loan is the down payment arrangement. Lenders won’t approve a full cost of the home that you intend to buy. You will need to put down at least 15-20% as the down payment. So, you should start preparing for the down payment. Check your Credit Score – Lenders can approve or reject your loan application if your CIBIL Score or Credit Score is not strong. A Credit Score of 750+ or more out of 900 is what lenders consider good for the loan approval. You can maintain a higher score by paying all your credit card bills and existing loan EMIs on time and by not defaulting. Get your Documents Ready – Creditors are particular about documents required for Home Loans and you should keep them in order. As a result, you need to keep your address proofs, identity proofs, income proofs and more in order while applying for the loan. Compare Home Loan offers Online – Don’t settle for the first Home Loan offer that comes your way. Why? It’s because you can get more affordable offers when you compare all Housing Loan offers on third-party websites. Once you are done comparing you can opt for a Home Loan scheme that best matches your needs and budget. Track the Home Loan Interest Rates – Check if your lender is offering you a fixed or a floating interest rate. Floating ones are regulated by market conditions and Home Loan EMIs may go or up while fixed will have a fixed EMI. If you don’t have a large income, you should opt for the fixed interest rate.   The Bottom Line Once you have analyzed these tips and improved your financial profile accordingly, you can avail a Housing Loan online and inch closer to having your own dream home! Best of luck! Watch Also:
    314 Posted by Aman Khanna
  • Buying a home stands among one of the major decisions of life that anyone takes, and if you are funding it with the help of a Home Loan, you need to know some vital steps. Once someone decides to buy a home using the housing finance option, the first thing that comes to his/her mind is – how to apply for a Housing Loan? If you are thinking of purchasing your dream nest, then this post will help you with some key aspects of availing a Home Loan. What is a Home Loan? The Home Loan is a unique facility offered by known banks, non-banking finance companies (NBFCs), and home financing companies to help people buy a home. Depending upon your Home Loan eligibility, one can easily avail an online housing loan these days up to Rs.3.5 crore. Lenders also offer lower interest rate along with wider tenor to help repay the loan in small EMIs. You can also utilize online tools such as the Housing Loan EMI calculator and eligibility calculator. These tools help in determining the loan EMI and eligibility before availing the loan.                                                         How to Apply for a Home Loan Tips Start Saving for Down Payment – The first step that will take you towards your Home Loan is the down payment arrangement. Lenders won’t approve a full cost of the home that you intend to buy. You will need to put down at least 15-20% as the down payment. So, you should start preparing for the down payment. Check your Credit Score – Lenders can approve or reject your loan application if your CIBIL Score or Credit Score is not strong. A Credit Score of 750+ or more out of 900 is what lenders consider good for the loan approval. You can maintain a higher score by paying all your credit card bills and existing loan EMIs on time and by not defaulting. Get your Documents Ready – Creditors are particular about documents required for Home Loans and you should keep them in order. As a result, you need to keep your address proofs, identity proofs, income proofs and more in order while applying for the loan. Compare Home Loan offers Online – Don’t settle for the first Home Loan offer that comes your way. Why? It’s because you can get more affordable offers when you compare all Housing Loan offers on third-party websites. Once you are done comparing you can opt for a Home Loan scheme that best matches your needs and budget. Track the Home Loan Interest Rates – Check if your lender is offering you a fixed or a floating interest rate. Floating ones are regulated by market conditions and Home Loan EMIs may go or up while fixed will have a fixed EMI. If you don’t have a large income, you should opt for the fixed interest rate.   The Bottom Line Once you have analyzed these tips and improved your financial profile accordingly, you can avail a Housing Loan online and inch closer to having your own dream home! Best of luck! Watch Also:
    Aug 08, 2018 314
  • 19 Jul 2018
    Buying a home is an expensive prospect. In order to make this a reality for every strata of the society in India, the Pradhan Mantri Awas Yojana (PMAY) was launched. Under this scheme the government plans to offer affordable 'Housing for All' by 2022. As a first-time homebuyer, you can avail a Home Loan to enjoy PMAY benefits and interest subsidies of up to 6.5%. In order to avail the benefits of PMAY on your Home Loan you will have to apply either online or offline using a simple application form. Here is how you can apply for PMAY quickly and with convenience. Apply Online1 - Head to the official website of PMAY: pmaymis.gov.in.2 - Here, under the ‘Citizen Assessment’ dropdown, select ‘benefits under 3 components’. This step allows you to decide your eligibility for the scheme. Based on the income group you fall in, select one. This selection defines you as a beneficiary for the scheme. For example, as per PMAY eligibility criteria, you will qualify under the Economically Weaker Section category (EWS) or Lower Income Group category (LIG) if your annual household income is between Rs.3-6 lakh. On the other hand, you will qualify for Middle Income Group I category (MIG 1) if your annual household income is between Rs.6-12 lakh. 3 - Now for the verification of your identity, add your Aadhaar number and click submit.4 - After verification, a form will open. You will have to add information such as name, income, number of family members, contact number and other details in this form.5 - After you have filled in all the details, recheck the form thoroughly.6 - Now enter the security captcha and submit the form.7 - Click on save and submit your application. Apply Offline 1 - In order to apply in person for PMAY, you will first have to locate your nearest CSC (Citizen Service Centre) at http://gis.csc.gov.in/locator/csc.aspx by entering your state, district, block and village name.2 - Visit your nearest CSC with all the required documents such as Aadhaar Card, photographs, Voter ID Card, and other identification and financial proofs.3 - At the Centre, you will have to fill an e-KYC form with all your relevant details such as Aadhaar number, number of people in your family, and yearly household income.4 - Then submit the form by paying Rs.25 at the Centre. 5 - After you submit the form, you will receive an acknowledge receipt encoded with a reference number, just like when you apply online. Once you submit your application for PMAY, you will get a reference number. This is your application code, and you can use this in future to keep track of your application. Once you know you meet the PMAY eligibility, proceed to take a Home Loan on nominal Home Loan interest rates with lenders like Bajaj Finserv. Apply now, to avail a loan of up to Rs.3.5 crore on easy repayment and added benefits.
    363 Posted by Aman Khanna
  • Buying a home is an expensive prospect. In order to make this a reality for every strata of the society in India, the Pradhan Mantri Awas Yojana (PMAY) was launched. Under this scheme the government plans to offer affordable 'Housing for All' by 2022. As a first-time homebuyer, you can avail a Home Loan to enjoy PMAY benefits and interest subsidies of up to 6.5%. In order to avail the benefits of PMAY on your Home Loan you will have to apply either online or offline using a simple application form. Here is how you can apply for PMAY quickly and with convenience. Apply Online1 - Head to the official website of PMAY: pmaymis.gov.in.2 - Here, under the ‘Citizen Assessment’ dropdown, select ‘benefits under 3 components’. This step allows you to decide your eligibility for the scheme. Based on the income group you fall in, select one. This selection defines you as a beneficiary for the scheme. For example, as per PMAY eligibility criteria, you will qualify under the Economically Weaker Section category (EWS) or Lower Income Group category (LIG) if your annual household income is between Rs.3-6 lakh. On the other hand, you will qualify for Middle Income Group I category (MIG 1) if your annual household income is between Rs.6-12 lakh. 3 - Now for the verification of your identity, add your Aadhaar number and click submit.4 - After verification, a form will open. You will have to add information such as name, income, number of family members, contact number and other details in this form.5 - After you have filled in all the details, recheck the form thoroughly.6 - Now enter the security captcha and submit the form.7 - Click on save and submit your application. Apply Offline 1 - In order to apply in person for PMAY, you will first have to locate your nearest CSC (Citizen Service Centre) at http://gis.csc.gov.in/locator/csc.aspx by entering your state, district, block and village name.2 - Visit your nearest CSC with all the required documents such as Aadhaar Card, photographs, Voter ID Card, and other identification and financial proofs.3 - At the Centre, you will have to fill an e-KYC form with all your relevant details such as Aadhaar number, number of people in your family, and yearly household income.4 - Then submit the form by paying Rs.25 at the Centre. 5 - After you submit the form, you will receive an acknowledge receipt encoded with a reference number, just like when you apply online. Once you submit your application for PMAY, you will get a reference number. This is your application code, and you can use this in future to keep track of your application. Once you know you meet the PMAY eligibility, proceed to take a Home Loan on nominal Home Loan interest rates with lenders like Bajaj Finserv. Apply now, to avail a loan of up to Rs.3.5 crore on easy repayment and added benefits.
    Jul 19, 2018 363
  • 11 Jul 2018
    Return on capital is profitability ratio. It measures the return that investment generates for investors or stockholders. It basically depicts how effective a company is turning its capital into profits. Having understood the basic concept, here are a few points that can help with high return on capital by ensuring return of capital first: Don’t Let Short-Term Losses Affect Long-Term Gains This is the first step towards seeking higher capital returns. You have to risk a little to gain more in the long run. For instance, prices of stocks, bonds, and mutual funds fluctuate frequently. Such losses due to the volatility of market should not bother you. At the same time, opting for a more reliable investment option like fixed deposits can ensure higher return on capital. Consider the Underlying Risk As an investor, you need to consider the underlying risk of the company you are investing in. The status of the company can be ascertained by the rating of the company. It is advisable to avoid companies that fund low-returns generating businesses and the companies with products that do not guarantee future returns. Be Practical While Taking Investment Decisions As an investor, never let emotions take over your thinking while taking investment decisions. Be it stocks, bonds or mutual funds, be practical while making a choice. You should always invest as per asset allocation based on your investment capacity, financial goals, and risk appetite. Also, timely re-balancing of your asset allocation helps you overcome your emotions. This subsequently helps you avoid incorrect investment decisions that cost you your capital. Invest in a Diversified Portfolio Investing your money in one stock, one scheme or one investment option may put your money at stake. What if the scheme fails? Hence, it is better to invest your money in different ways and own a diversified portfolio. Although diversification does not guarantee the return of capital, it reduces the risk or chance of permanent loss of your capital. For instance, if you have invested in stocks, you may incur losses if the market is volatile. However, investing in asset classes like fixed deposits will assure some returns even though the interest rate decreases. Increase the Duration of Investment The possibility of loss of capital decreases as the holding period increases in case of equity investing. Opting for a systematic, long-term investment plan assures good returns in the long-run. For instance, buying stocks of a good company may not have a good hold on the market in the present, but the chances are high that it may fight the crisis and improve its position in the market in the future – leading to profitable stocks. Invest Under Experts’ Guidance As an amateur investor, you may be putting your hard-earned money at stake if you do not take experts’ guidance. It is crucial to take advice from a veteran investor, take tips and study the market trends to get well-versed with the ways the market functions. Also, it is good to keep reviewing your investment portfolio at regular intervals. Various banks and financial companies like Bajaj Finance provide reliable investment options with secured capital returns. Take a decision today and secure your tomorrow!
    227 Posted by Aman Khanna
  • Return on capital is profitability ratio. It measures the return that investment generates for investors or stockholders. It basically depicts how effective a company is turning its capital into profits. Having understood the basic concept, here are a few points that can help with high return on capital by ensuring return of capital first: Don’t Let Short-Term Losses Affect Long-Term Gains This is the first step towards seeking higher capital returns. You have to risk a little to gain more in the long run. For instance, prices of stocks, bonds, and mutual funds fluctuate frequently. Such losses due to the volatility of market should not bother you. At the same time, opting for a more reliable investment option like fixed deposits can ensure higher return on capital. Consider the Underlying Risk As an investor, you need to consider the underlying risk of the company you are investing in. The status of the company can be ascertained by the rating of the company. It is advisable to avoid companies that fund low-returns generating businesses and the companies with products that do not guarantee future returns. Be Practical While Taking Investment Decisions As an investor, never let emotions take over your thinking while taking investment decisions. Be it stocks, bonds or mutual funds, be practical while making a choice. You should always invest as per asset allocation based on your investment capacity, financial goals, and risk appetite. Also, timely re-balancing of your asset allocation helps you overcome your emotions. This subsequently helps you avoid incorrect investment decisions that cost you your capital. Invest in a Diversified Portfolio Investing your money in one stock, one scheme or one investment option may put your money at stake. What if the scheme fails? Hence, it is better to invest your money in different ways and own a diversified portfolio. Although diversification does not guarantee the return of capital, it reduces the risk or chance of permanent loss of your capital. For instance, if you have invested in stocks, you may incur losses if the market is volatile. However, investing in asset classes like fixed deposits will assure some returns even though the interest rate decreases. Increase the Duration of Investment The possibility of loss of capital decreases as the holding period increases in case of equity investing. Opting for a systematic, long-term investment plan assures good returns in the long-run. For instance, buying stocks of a good company may not have a good hold on the market in the present, but the chances are high that it may fight the crisis and improve its position in the market in the future – leading to profitable stocks. Invest Under Experts’ Guidance As an amateur investor, you may be putting your hard-earned money at stake if you do not take experts’ guidance. It is crucial to take advice from a veteran investor, take tips and study the market trends to get well-versed with the ways the market functions. Also, it is good to keep reviewing your investment portfolio at regular intervals. Various banks and financial companies like Bajaj Finance provide reliable investment options with secured capital returns. Take a decision today and secure your tomorrow!
    Jul 11, 2018 227
  • 15 Jun 2018
    Today youngsters are not keen on waiting till retirement to have their dream home and many start planning of making their first big investment as soon as they start earning. Needs and requirements of the borrowers are diverse and so to have a loan scheme on the basis of One Size Fits All is not going to be for their benefit. There are many factors which a borrower has to consider before making an application, but unbeknownst to most of them, some of the charges can also be bargained and negotiated. There are numerous terms and conditions to be complied with, along with tedious fee calculation but in some areas, the borrower can negotiate and save a lot by making reduced payments when they apply for Home Loan. The borrower should make preparations three to six months before making the application for loan. Sales representatives of banks and NBFCs too have to meet their target so by citing examples of other banks offering you reduced rates could prompt them to reduce their rates further. It is a good idea to stretch you locking period as well. The locking period is the number of days during which the interest rate promised on a pending loan cannot be changed and in case of most banks, the period after which the bank resets the interest rate, or even transforms the fixed rate loan to a floating loan can be elongated. Using a housing loan eligibility calculator to know how much would you end up saving if you successfully manage to negotiate with the lender and reduce your payments. We often tend to be oblivious of many hidden charges  and fees like legal fees, processing fees and administration fees and some banks try to attract customers by offering lower interest rates when these other hidden charges slowly go up. It is a good idea to keep track of these charges as well and quote not just the EMI charges but the other charges as well when doing your research and negotiating with other banks. Home Loan application online has made it easier for you to approach a large number of creditors at a short span of time. Banks are not really keen on giving loans to borrowers who have moderate income and are already paying for other loans. They might even show this as a sign of less reliability and refuse to lower the interest rate. Hence, it is good idea to get rid of all your existing loans and to increase the disposable income so that you have better chances of negotiation. Be ready with the documents required for Home Loan so that the loans can be disbursed right after the verification. They include Photo ID and Age Proof, Address Proof and the IT returns for the last three consecutive years, which is the same for all. For salaried people, one would have to provide the salary slip of the last six months and the bank statement of the last three months. In case of self employed individuals or those having their business, the TAN has to be provided as a business proof, along with sales tax documents. Apart from these, the creditors could ask for any other documents as per their requirements.
    224 Posted by Aman Khanna
  • Today youngsters are not keen on waiting till retirement to have their dream home and many start planning of making their first big investment as soon as they start earning. Needs and requirements of the borrowers are diverse and so to have a loan scheme on the basis of One Size Fits All is not going to be for their benefit. There are many factors which a borrower has to consider before making an application, but unbeknownst to most of them, some of the charges can also be bargained and negotiated. There are numerous terms and conditions to be complied with, along with tedious fee calculation but in some areas, the borrower can negotiate and save a lot by making reduced payments when they apply for Home Loan. The borrower should make preparations three to six months before making the application for loan. Sales representatives of banks and NBFCs too have to meet their target so by citing examples of other banks offering you reduced rates could prompt them to reduce their rates further. It is a good idea to stretch you locking period as well. The locking period is the number of days during which the interest rate promised on a pending loan cannot be changed and in case of most banks, the period after which the bank resets the interest rate, or even transforms the fixed rate loan to a floating loan can be elongated. Using a housing loan eligibility calculator to know how much would you end up saving if you successfully manage to negotiate with the lender and reduce your payments. We often tend to be oblivious of many hidden charges  and fees like legal fees, processing fees and administration fees and some banks try to attract customers by offering lower interest rates when these other hidden charges slowly go up. It is a good idea to keep track of these charges as well and quote not just the EMI charges but the other charges as well when doing your research and negotiating with other banks. Home Loan application online has made it easier for you to approach a large number of creditors at a short span of time. Banks are not really keen on giving loans to borrowers who have moderate income and are already paying for other loans. They might even show this as a sign of less reliability and refuse to lower the interest rate. Hence, it is good idea to get rid of all your existing loans and to increase the disposable income so that you have better chances of negotiation. Be ready with the documents required for Home Loan so that the loans can be disbursed right after the verification. They include Photo ID and Age Proof, Address Proof and the IT returns for the last three consecutive years, which is the same for all. For salaried people, one would have to provide the salary slip of the last six months and the bank statement of the last three months. In case of self employed individuals or those having their business, the TAN has to be provided as a business proof, along with sales tax documents. Apart from these, the creditors could ask for any other documents as per their requirements.
    Jun 15, 2018 224
  • 21 May 2018
    Making investments at any stage of life can be a rather complicated affair. Having to navigate through the market and know what is happening with which stocks on a constant basis can be taxing. Especially in old age, when you have retired and like to keep the stress levels low. Which is why, you are looking for simple ways to arrange your investments so that you get a neat monthly return and don’t have to worry about a steady income. Don’t Be in Debt, Invest in It As you grow older and past the age of wanting to worry about paying people or banks back, you need to make sure that you don’t have any financial obligations outstanding. All the debt you might have incurred in your professional life ought to be repaid before you truly retire. That being said, ironically, as an investment, debt is one of the best options you have. All debt securities give you a good return rate along with safety of investment. The government of India has many options that one can invest in as a senior citizen. Some of these options are Real Estate Investment Trusts, Infrastructure Investment Trusts, Senior Citizen Savings Scheme, etc. Invest in Fixed Deposits You never know when you might need a lump-sum of money, especially in your later years. Medical bills, insurance premiums, gas and light bills, etc. add to the monthly cheque you have to cut to make sure everything continues as it is. In such cases, having a good amount parked in a FD (fixed deposit) can always come in handy. And the best part is you get monthly return from it in the meantime. In the FY18 budget, senior citizens got huge tax breaks in the form of a higher ceiling for tax deduction on fixed deposit interest returns. Now you can claim a tax benefit on as much as INR 50,000 collected in fixed deposit returns. With the market on a rise, banks are still giving senior citizens fixed deposit interest rates that can be called decent. Some private institutions such as Bajaj Finance are going as high as 8.20% interest rate on their senior citizens fixed deposits. If you have a large amount of money from your retirement pay-off or pension lumpsum it would be a wise move to park it in a fixed deposit. Sell All Unnecessary Assets Over the course of a lifetime it is only natural that you would accumulate a few things that were not really needed. Post retirement it pays off to pay attention to such things and get rid of them as soon as possible. All the capital that you could potentially gather from keeping only the necessary things, you can then invest into your future. In a way, such objects are another form of saving that can only come in handy in old age. Collect Monthly Rents It is a great relief in retirement if there is a monthly source of income. One way to do that is to buy flats and condos in places that are currently developing and that see a lot of professionals migrating. 2nd tier cities are always a good place to start if you do not have any property in a 1st tier city. If you do, it would be wise to move to a 2nd tier city and rent out your property in the 1st tier city. The rent you would get would be more than sufficient to pay your expenses in your new home. In any other case, you can collect rent from multiple properties, if possible, to ensure you are always earning. All these ways are to make sure that you do not have the clutter of bills to worry about, but instead keep earning a steady income all through retirement!
    249 Posted by Aman Khanna
  • Making investments at any stage of life can be a rather complicated affair. Having to navigate through the market and know what is happening with which stocks on a constant basis can be taxing. Especially in old age, when you have retired and like to keep the stress levels low. Which is why, you are looking for simple ways to arrange your investments so that you get a neat monthly return and don’t have to worry about a steady income. Don’t Be in Debt, Invest in It As you grow older and past the age of wanting to worry about paying people or banks back, you need to make sure that you don’t have any financial obligations outstanding. All the debt you might have incurred in your professional life ought to be repaid before you truly retire. That being said, ironically, as an investment, debt is one of the best options you have. All debt securities give you a good return rate along with safety of investment. The government of India has many options that one can invest in as a senior citizen. Some of these options are Real Estate Investment Trusts, Infrastructure Investment Trusts, Senior Citizen Savings Scheme, etc. Invest in Fixed Deposits You never know when you might need a lump-sum of money, especially in your later years. Medical bills, insurance premiums, gas and light bills, etc. add to the monthly cheque you have to cut to make sure everything continues as it is. In such cases, having a good amount parked in a FD (fixed deposit) can always come in handy. And the best part is you get monthly return from it in the meantime. In the FY18 budget, senior citizens got huge tax breaks in the form of a higher ceiling for tax deduction on fixed deposit interest returns. Now you can claim a tax benefit on as much as INR 50,000 collected in fixed deposit returns. With the market on a rise, banks are still giving senior citizens fixed deposit interest rates that can be called decent. Some private institutions such as Bajaj Finance are going as high as 8.20% interest rate on their senior citizens fixed deposits. If you have a large amount of money from your retirement pay-off or pension lumpsum it would be a wise move to park it in a fixed deposit. Sell All Unnecessary Assets Over the course of a lifetime it is only natural that you would accumulate a few things that were not really needed. Post retirement it pays off to pay attention to such things and get rid of them as soon as possible. All the capital that you could potentially gather from keeping only the necessary things, you can then invest into your future. In a way, such objects are another form of saving that can only come in handy in old age. Collect Monthly Rents It is a great relief in retirement if there is a monthly source of income. One way to do that is to buy flats and condos in places that are currently developing and that see a lot of professionals migrating. 2nd tier cities are always a good place to start if you do not have any property in a 1st tier city. If you do, it would be wise to move to a 2nd tier city and rent out your property in the 1st tier city. The rent you would get would be more than sufficient to pay your expenses in your new home. In any other case, you can collect rent from multiple properties, if possible, to ensure you are always earning. All these ways are to make sure that you do not have the clutter of bills to worry about, but instead keep earning a steady income all through retirement!
    May 21, 2018 249
  • 16 May 2018
    Kolhapur, in Maharashtra, is renowned for its famous temples and rich history. If you are a resident of Kolhapur planning to buy a house, a Home Loan from Bajaj Finserv might be the ideal way for you. You can get a loan in a short time and at affordable interest rates. But before that, ensure that you are eligible for a Home Loan. Here is a list of eligibility requirements if you wish to avail a Home Loan in Kolhapur. Eligibility Criteria for Bajaj Finserv Home Loans When it comes to a Home Loan from Bajaj Finserv, there are certain qualifying factors.   You need to be an Indian resident You need to be between the ages of 25-58 You need to be a salaried individual A work experience of at least three years is desirable Avail a loan amount of Rs.30 lakh or more Get a loan amount of up to Rs.10 crore   These are a few common Home Loan eligibility criteria, irrespective of the city you live in. So, for instance, if you are not an Indian resident or if you are below the age of 25, you would not be eligible for a Home Loan. Specific Eligibility Criteria for Kolhapur Residents If you were to take a Home Loan in Kolhapur, you must meet the following requirements. Minimum Net Salary per Month You need to earn a net monthly salary of Rs 30,000 at least to be eligible for a Home Loan in Kolhapur. This is to ensure that you can pay the EMIs without defaulting. Lowest Property Value The value of the property you are borrowing for, must be Rs.20 lakh at least. You can also get a top-up loan at a minimal rate of interest. You can use this for a home improvement project. Documents Required You need to produce certain documents with your loan application. The documents include: The complete loan application form A passport size photograph An identity proof (driving license, PAN card, voter’s ID card, Aadhaar card are eligible) Address proof (passport, voter’s ID card, driving license, Aadhaar card are eligible) Income details (salary slips or Form 16 are eligible) Bank account statements (all statements for the last six months)   Make sure you have all the documents ready well in time. This smoothens the loan application process. Conclusion If you qualify for all the above requirements, you can avail a Home Loan from Bajaj Finserv. And in no time, your dream house can become a reality in your beloved city of Kolhapur.
    237 Posted by Aman Khanna
  • Kolhapur, in Maharashtra, is renowned for its famous temples and rich history. If you are a resident of Kolhapur planning to buy a house, a Home Loan from Bajaj Finserv might be the ideal way for you. You can get a loan in a short time and at affordable interest rates. But before that, ensure that you are eligible for a Home Loan. Here is a list of eligibility requirements if you wish to avail a Home Loan in Kolhapur. Eligibility Criteria for Bajaj Finserv Home Loans When it comes to a Home Loan from Bajaj Finserv, there are certain qualifying factors.   You need to be an Indian resident You need to be between the ages of 25-58 You need to be a salaried individual A work experience of at least three years is desirable Avail a loan amount of Rs.30 lakh or more Get a loan amount of up to Rs.10 crore   These are a few common Home Loan eligibility criteria, irrespective of the city you live in. So, for instance, if you are not an Indian resident or if you are below the age of 25, you would not be eligible for a Home Loan. Specific Eligibility Criteria for Kolhapur Residents If you were to take a Home Loan in Kolhapur, you must meet the following requirements. Minimum Net Salary per Month You need to earn a net monthly salary of Rs 30,000 at least to be eligible for a Home Loan in Kolhapur. This is to ensure that you can pay the EMIs without defaulting. Lowest Property Value The value of the property you are borrowing for, must be Rs.20 lakh at least. You can also get a top-up loan at a minimal rate of interest. You can use this for a home improvement project. Documents Required You need to produce certain documents with your loan application. The documents include: The complete loan application form A passport size photograph An identity proof (driving license, PAN card, voter’s ID card, Aadhaar card are eligible) Address proof (passport, voter’s ID card, driving license, Aadhaar card are eligible) Income details (salary slips or Form 16 are eligible) Bank account statements (all statements for the last six months)   Make sure you have all the documents ready well in time. This smoothens the loan application process. Conclusion If you qualify for all the above requirements, you can avail a Home Loan from Bajaj Finserv. And in no time, your dream house can become a reality in your beloved city of Kolhapur.
    May 16, 2018 237
  • 04 Apr 2018
    Are you planning for a housing loan but aren’t sure which bank to approach? You aren’t the only one to have doubts. No-one wants to end up paying excess as housing loan EMI can exhaust their funds midway. Your confusion may be over whether the bank is charging you a fair amount or not. But help’s at hand. A Home Loan EMI calculator can come to your rescue. Benefits of using Home Loan EMI Calculators You can manually calculate the equitable monthly instalment, also known as EMI. But that can be quite a task. This is the reason why an EMI calculator should be your go-to tool. This helps you to: Determine the approximate monthly instalment Deduce the loan amount you are eligible for Understand how loan payments work Compare the monthly instalments of loans from different lenders   A Home Loan interest calculator can also assist you in: Planning ahead Evaluating your repayment capability Understanding the loan eligibility criteria Saving time by providing instant results Getting a hassle-free estimate Yielding zero cost   Inputs Required to Calculate EMI Taking a Home Loan isn’t that simple. It involves spending a hefty amount and requires detailed planning. You must start with proper research. A Home Loan eligibility calculator should be the first step of your research. The basic inputs required for using a housing loan EMI calculator are: Loan Amount: This is the sum you borrow from the lender. You can also refer to it as the principal amount. This depends on the valuation of the house. You cannot borrow more than 80% of the cost of the property. The down-payment matters too, as does your repayment capability. Rate of Interest: This can be a fixed rate. Here, the rate of interest remains the same throughout the tenor. Or, it can be a floating rate of interest. That is, the interest rate changes with a change in base price. Note that the rate varies from one bank to another. Tenor: It is the period over which you repay your loan. You are free to choose the tenor you are comfortable with. Home Loans come with longer tenors, from 20 to 30 years.   Once you get all these inputs, you can take the help of an online EMI calculator. You can choose to use Bajaj Finserv’s Home Loan calculator as it is reliable and user-friendly. Let’s assume you want to buy a property worth Rs.40 lakh. You’d need to make a down payment of Rs.8 lakh. That means you’d have to take a Home Loan of Rs.32 lakh. So, when you use Bajaj Finserv’s online Home Loan calculator, you’d have to select the loan amount (Rs.32 lakh in this case), the interest rate (let’s assume 10%) and the duration of the loan (say 10 years). The calculator will display the EMI in no time. You will find out that the monthly instalment will be Rs.34,387. The following formulae are for those who want to do the math by themselves: For calculating on Microsoft Excel, you need to use the formula ‘PMT (rate, nper, pv)’. Here, Rate = the rate of interest nper = the number of periods (years) pv = the loan amount   For instance, Natasha needs a loan of Rs.20 lakh for buying a property. She wants to find out her chances of getting one. She opts for 8% interest rate over a period of 20 years. Moreover, she wants to repay on a monthly basis. So, she divides the rate and multiplies the tenor by 12. Natasha keyed in the values in the required boxes in an Excel sheet under the formula section. Here, the rate is 8%/12, nper is 20*12 and pv is 20lakh. The Excel sheet will tell you that her EMI will be Rs.16,728.80. The mathematical formula ‘EMI=p*r*(1+r)^n/((1+r)^n-1)’ can also serve the purpose. Use a calculator and do the needful. Here, p = the loan amount r = the interest rate calculated on a monthly basis. You will get it by using the formula ‘r = (rate/12)*100’ n = the tenor in months. Hence, n = total tenor*12   Apply the same data as in the previous example and you will get the same result. Evade the hassles of calculating your housing loan EMI by using the Bajaj Finserv Home Loan EMI Calculator that can save your time and compute the EMI amount. It is fast, simple and efficient. Once you know your EMI amount, you can progress to the next stage of choosing the right lender.  
    494 Posted by Aman Khanna
  • Are you planning for a housing loan but aren’t sure which bank to approach? You aren’t the only one to have doubts. No-one wants to end up paying excess as housing loan EMI can exhaust their funds midway. Your confusion may be over whether the bank is charging you a fair amount or not. But help’s at hand. A Home Loan EMI calculator can come to your rescue. Benefits of using Home Loan EMI Calculators You can manually calculate the equitable monthly instalment, also known as EMI. But that can be quite a task. This is the reason why an EMI calculator should be your go-to tool. This helps you to: Determine the approximate monthly instalment Deduce the loan amount you are eligible for Understand how loan payments work Compare the monthly instalments of loans from different lenders   A Home Loan interest calculator can also assist you in: Planning ahead Evaluating your repayment capability Understanding the loan eligibility criteria Saving time by providing instant results Getting a hassle-free estimate Yielding zero cost   Inputs Required to Calculate EMI Taking a Home Loan isn’t that simple. It involves spending a hefty amount and requires detailed planning. You must start with proper research. A Home Loan eligibility calculator should be the first step of your research. The basic inputs required for using a housing loan EMI calculator are: Loan Amount: This is the sum you borrow from the lender. You can also refer to it as the principal amount. This depends on the valuation of the house. You cannot borrow more than 80% of the cost of the property. The down-payment matters too, as does your repayment capability. Rate of Interest: This can be a fixed rate. Here, the rate of interest remains the same throughout the tenor. Or, it can be a floating rate of interest. That is, the interest rate changes with a change in base price. Note that the rate varies from one bank to another. Tenor: It is the period over which you repay your loan. You are free to choose the tenor you are comfortable with. Home Loans come with longer tenors, from 20 to 30 years.   Once you get all these inputs, you can take the help of an online EMI calculator. You can choose to use Bajaj Finserv’s Home Loan calculator as it is reliable and user-friendly. Let’s assume you want to buy a property worth Rs.40 lakh. You’d need to make a down payment of Rs.8 lakh. That means you’d have to take a Home Loan of Rs.32 lakh. So, when you use Bajaj Finserv’s online Home Loan calculator, you’d have to select the loan amount (Rs.32 lakh in this case), the interest rate (let’s assume 10%) and the duration of the loan (say 10 years). The calculator will display the EMI in no time. You will find out that the monthly instalment will be Rs.34,387. The following formulae are for those who want to do the math by themselves: For calculating on Microsoft Excel, you need to use the formula ‘PMT (rate, nper, pv)’. Here, Rate = the rate of interest nper = the number of periods (years) pv = the loan amount   For instance, Natasha needs a loan of Rs.20 lakh for buying a property. She wants to find out her chances of getting one. She opts for 8% interest rate over a period of 20 years. Moreover, she wants to repay on a monthly basis. So, she divides the rate and multiplies the tenor by 12. Natasha keyed in the values in the required boxes in an Excel sheet under the formula section. Here, the rate is 8%/12, nper is 20*12 and pv is 20lakh. The Excel sheet will tell you that her EMI will be Rs.16,728.80. The mathematical formula ‘EMI=p*r*(1+r)^n/((1+r)^n-1)’ can also serve the purpose. Use a calculator and do the needful. Here, p = the loan amount r = the interest rate calculated on a monthly basis. You will get it by using the formula ‘r = (rate/12)*100’ n = the tenor in months. Hence, n = total tenor*12   Apply the same data as in the previous example and you will get the same result. Evade the hassles of calculating your housing loan EMI by using the Bajaj Finserv Home Loan EMI Calculator that can save your time and compute the EMI amount. It is fast, simple and efficient. Once you know your EMI amount, you can progress to the next stage of choosing the right lender.  
    Apr 04, 2018 494
  • 17 Dec 2017
    We try to save a lot when it comes to monetary funding, we all know how much money is important for us all to have a better tomorrow. Most of us believe that by saving every day little by little might help us some day. Opinions like these may seem feasible, but if you think logically, you might notice that there are many loopholes in this plan, What if there is a sudden need of funds? What if all your money is devoured by a medical emergency? What if your need for money in the future amounts much more than you have saved? All these questions might make you reconsider your decision towards saving your money for the future. To keep the inflow of funds constant, you need to invest your money in the sources that might provide you guaranteed returns on your investments. There are investment sources in the market that can offer you returns as well as keep your invested capital safe. FD is the best option for secured returns and investment safety. The returns that you gain from your FD is totally dependent on the FD interest rates offered by the service provider. As directed by the Reserve Bank of India (RBI), the interest that you gain from your FD account is taxable. When your return amount exceeds INR 10,000, you are liable to pay Tax deductible at Source (TDS) at the time of investment withdrawal. This can be disheartening for the people who are first-time investors and are expecting better returns. There are ways using which you can save your money from being deducted from taxes. Here are the steps that you can take to save your money on taxes: Applying for 15G and 15H: One of the best ways to save your money from tax deductions or TDS is to apply for 15G and 15H. These are forms that can be used to exempt you from the TDS that is applied to your income returns. The form 15G is for low-income individuals that have an income lower than the amount set by the RBI. Whereas the 15H is for senior citizens that are above 60 years of age. Applying with Different Service Providers: This can be one of the ways to save on taxes but can be tedious at the same time. In order to save your money from tax deductions, you can invest your investment amount with different service providers that would break your income into smaller dividends. Due to the low amount of the dividends, the income would not reach the amount of INR 10,000 and save your money from tax deductions. To Apply for IT Returns: As returns gained from FDs are taxable, the amount that you invest in these FDs can save your money from tax deductions. According to the Section 80c of the Income Tax Department, any investment made in a financial year that exceeds the amount of INR 1.5 lakh, makes the payee eligible for tax deduction. This segment help to solve the query about what is TDS on Fixed Deposit and how you can save a lot of income tax and TDS by using the ways mentioned above, or you can save directly by investing a huge amount and then applying for a tax return. It is highly recommended that you keep track of your investments.  
    472 Posted by Aman Khanna
  • We try to save a lot when it comes to monetary funding, we all know how much money is important for us all to have a better tomorrow. Most of us believe that by saving every day little by little might help us some day. Opinions like these may seem feasible, but if you think logically, you might notice that there are many loopholes in this plan, What if there is a sudden need of funds? What if all your money is devoured by a medical emergency? What if your need for money in the future amounts much more than you have saved? All these questions might make you reconsider your decision towards saving your money for the future. To keep the inflow of funds constant, you need to invest your money in the sources that might provide you guaranteed returns on your investments. There are investment sources in the market that can offer you returns as well as keep your invested capital safe. FD is the best option for secured returns and investment safety. The returns that you gain from your FD is totally dependent on the FD interest rates offered by the service provider. As directed by the Reserve Bank of India (RBI), the interest that you gain from your FD account is taxable. When your return amount exceeds INR 10,000, you are liable to pay Tax deductible at Source (TDS) at the time of investment withdrawal. This can be disheartening for the people who are first-time investors and are expecting better returns. There are ways using which you can save your money from being deducted from taxes. Here are the steps that you can take to save your money on taxes: Applying for 15G and 15H: One of the best ways to save your money from tax deductions or TDS is to apply for 15G and 15H. These are forms that can be used to exempt you from the TDS that is applied to your income returns. The form 15G is for low-income individuals that have an income lower than the amount set by the RBI. Whereas the 15H is for senior citizens that are above 60 years of age. Applying with Different Service Providers: This can be one of the ways to save on taxes but can be tedious at the same time. In order to save your money from tax deductions, you can invest your investment amount with different service providers that would break your income into smaller dividends. Due to the low amount of the dividends, the income would not reach the amount of INR 10,000 and save your money from tax deductions. To Apply for IT Returns: As returns gained from FDs are taxable, the amount that you invest in these FDs can save your money from tax deductions. According to the Section 80c of the Income Tax Department, any investment made in a financial year that exceeds the amount of INR 1.5 lakh, makes the payee eligible for tax deduction. This segment help to solve the query about what is TDS on Fixed Deposit and how you can save a lot of income tax and TDS by using the ways mentioned above, or you can save directly by investing a huge amount and then applying for a tax return. It is highly recommended that you keep track of your investments.  
    Dec 17, 2017 472

Most Viewed Blogs/Articles From This Author

  • 17 Dec 2017
    We try to save a lot when it comes to monetary funding, we all know how much money is important for us all to have a better tomorrow. Most of us believe that by saving every day little by little might help us some day. Opinions like these may seem feasible, but if you think logically, you might notice that there are many loopholes in this plan, What if there is a sudden need of funds? What if all your money is devoured by a medical emergency? What if your need for money in the future amounts much more than you have saved? All these questions might make you reconsider your decision towards saving your money for the future. To keep the inflow of funds constant, you need to invest your money in the sources that might provide you guaranteed returns on your investments. There are investment sources in the market that can offer you returns as well as keep your invested capital safe. FD is the best option for secured returns and investment safety. The returns that you gain from your FD is totally dependent on the FD interest rates offered by the service provider. As directed by the Reserve Bank of India (RBI), the interest that you gain from your FD account is taxable. When your return amount exceeds INR 10,000, you are liable to pay Tax deductible at Source (TDS) at the time of investment withdrawal. This can be disheartening for the people who are first-time investors and are expecting better returns. There are ways using which you can save your money from being deducted from taxes. Here are the steps that you can take to save your money on taxes: Applying for 15G and 15H: One of the best ways to save your money from tax deductions or TDS is to apply for 15G and 15H. These are forms that can be used to exempt you from the TDS that is applied to your income returns. The form 15G is for low-income individuals that have an income lower than the amount set by the RBI. Whereas the 15H is for senior citizens that are above 60 years of age. Applying with Different Service Providers: This can be one of the ways to save on taxes but can be tedious at the same time. In order to save your money from tax deductions, you can invest your investment amount with different service providers that would break your income into smaller dividends. Due to the low amount of the dividends, the income would not reach the amount of INR 10,000 and save your money from tax deductions. To Apply for IT Returns: As returns gained from FDs are taxable, the amount that you invest in these FDs can save your money from tax deductions. According to the Section 80c of the Income Tax Department, any investment made in a financial year that exceeds the amount of INR 1.5 lakh, makes the payee eligible for tax deduction. This segment help to solve the query about what is TDS on Fixed Deposit and how you can save a lot of income tax and TDS by using the ways mentioned above, or you can save directly by investing a huge amount and then applying for a tax return. It is highly recommended that you keep track of your investments.  
    472 Posted by Aman Khanna
  • 08 Oct 2018
     - PMAY scheme introduced in 2015 to provide houses at subsidized interest rates  - Affordable housing extends to women and minorities  - Partnerships with the states and developers  - Potential homeowners can save through tax exemption as well Introduced by the Indian Government back in 2015, Pradhan Mantri Awas Yojana (PMAY) is an initiative launched to provide ‘Housing for All’ by the year 2022. It is targeted to create affordable housing solutions in India along with sanitation, water supply and electricity. Apart from this, PM Awas Yojana offers financial support to the lower income groups (LIG), Economically Weaker Section (EWS) as an incentive to own a home. The support varies from full grants, partial grants to subsidised loans, depending on the income slab, they fall under. The PMAY scheme is split up into four components. These are listed as follows: In-situ Rehabilitation: The first component revolves around individuals residing in slums or slum dwellers. The scheme aims to develop the slum areas by partnering with private developers. Credit Linked Subsidy Scheme (CLSS): The scheme has a provision to give a credit-linked subsidy to weaker and mid-income sections of society when they take loans to purchase land or modify an existing home. Affordable Housing in Partnership: The government will offer financial assistance for housing projects at an affordable rate. It is applicable for those individuals who have neither a piece of land to construct a home or the funds to get a Home Loan. Beneficiary Led Construction: It is applicable to individuals who already have a piece of land and are looking to renovate. Subsidized Interest Rates The government offers a subsidy of 6.5% on loans taken on total amounts less than Rs.6 lakh. This is applicable to homes where the annual income does not exceed Rs.6 lakh. While an individual whose household income comes within the bracket of Rs.12 lakh, the government offers a subsidy of 4% on the loan amount up to Rs.9 lakh. A subsidy of 3% is offered on a loan amount up to Rs.12 lakh to individuals whose annual household income does not exceed Rs.18 lakh. Long Tenor The loan tenor was extended from 15 years to 20 years to provide ample amount of time and keep the EMIs low and affordable. No Processing Fees Banks or housing finance companies do not charge any processing fee for applications filed under CLSS. Preference to Minorities Under the scheme, women are given preference. This preference extends to widows, single working-women, persons belonging to scheduled castes and scheduled tribes, backward classes, differently abled and transgender people. Tax Exemption With the aim of providing housing at affordable rates for all, the PMAY is exempt from tax to a certain extent. As per the Income Tax Act of 1961, Indian residents are eligible for Home Loan tax benefits of Rs.2 lakh on the interest amount and Rs.1.5 lakh on the principal amount. This exemption is over the PMAY subsidy.
    407 Posted by Aman Khanna
  • 19 Jul 2018
    Buying a home is an expensive prospect. In order to make this a reality for every strata of the society in India, the Pradhan Mantri Awas Yojana (PMAY) was launched. Under this scheme the government plans to offer affordable 'Housing for All' by 2022. As a first-time homebuyer, you can avail a Home Loan to enjoy PMAY benefits and interest subsidies of up to 6.5%. In order to avail the benefits of PMAY on your Home Loan you will have to apply either online or offline using a simple application form. Here is how you can apply for PMAY quickly and with convenience. Apply Online1 - Head to the official website of PMAY: pmaymis.gov.in.2 - Here, under the ‘Citizen Assessment’ dropdown, select ‘benefits under 3 components’. This step allows you to decide your eligibility for the scheme. Based on the income group you fall in, select one. This selection defines you as a beneficiary for the scheme. For example, as per PMAY eligibility criteria, you will qualify under the Economically Weaker Section category (EWS) or Lower Income Group category (LIG) if your annual household income is between Rs.3-6 lakh. On the other hand, you will qualify for Middle Income Group I category (MIG 1) if your annual household income is between Rs.6-12 lakh. 3 - Now for the verification of your identity, add your Aadhaar number and click submit.4 - After verification, a form will open. You will have to add information such as name, income, number of family members, contact number and other details in this form.5 - After you have filled in all the details, recheck the form thoroughly.6 - Now enter the security captcha and submit the form.7 - Click on save and submit your application. Apply Offline 1 - In order to apply in person for PMAY, you will first have to locate your nearest CSC (Citizen Service Centre) at http://gis.csc.gov.in/locator/csc.aspx by entering your state, district, block and village name.2 - Visit your nearest CSC with all the required documents such as Aadhaar Card, photographs, Voter ID Card, and other identification and financial proofs.3 - At the Centre, you will have to fill an e-KYC form with all your relevant details such as Aadhaar number, number of people in your family, and yearly household income.4 - Then submit the form by paying Rs.25 at the Centre. 5 - After you submit the form, you will receive an acknowledge receipt encoded with a reference number, just like when you apply online. Once you submit your application for PMAY, you will get a reference number. This is your application code, and you can use this in future to keep track of your application. Once you know you meet the PMAY eligibility, proceed to take a Home Loan on nominal Home Loan interest rates with lenders like Bajaj Finserv. Apply now, to avail a loan of up to Rs.3.5 crore on easy repayment and added benefits.
    363 Posted by Aman Khanna
  • 08 Aug 2018
    Buying a home stands among one of the major decisions of life that anyone takes, and if you are funding it with the help of a Home Loan, you need to know some vital steps. Once someone decides to buy a home using the housing finance option, the first thing that comes to his/her mind is – how to apply for a Housing Loan? If you are thinking of purchasing your dream nest, then this post will help you with some key aspects of availing a Home Loan. What is a Home Loan? The Home Loan is a unique facility offered by known banks, non-banking finance companies (NBFCs), and home financing companies to help people buy a home. Depending upon your Home Loan eligibility, one can easily avail an online housing loan these days up to Rs.3.5 crore. Lenders also offer lower interest rate along with wider tenor to help repay the loan in small EMIs. You can also utilize online tools such as the Housing Loan EMI calculator and eligibility calculator. These tools help in determining the loan EMI and eligibility before availing the loan.                                                         How to Apply for a Home Loan Tips Start Saving for Down Payment – The first step that will take you towards your Home Loan is the down payment arrangement. Lenders won’t approve a full cost of the home that you intend to buy. You will need to put down at least 15-20% as the down payment. So, you should start preparing for the down payment. Check your Credit Score – Lenders can approve or reject your loan application if your CIBIL Score or Credit Score is not strong. A Credit Score of 750+ or more out of 900 is what lenders consider good for the loan approval. You can maintain a higher score by paying all your credit card bills and existing loan EMIs on time and by not defaulting. Get your Documents Ready – Creditors are particular about documents required for Home Loans and you should keep them in order. As a result, you need to keep your address proofs, identity proofs, income proofs and more in order while applying for the loan. Compare Home Loan offers Online – Don’t settle for the first Home Loan offer that comes your way. Why? It’s because you can get more affordable offers when you compare all Housing Loan offers on third-party websites. Once you are done comparing you can opt for a Home Loan scheme that best matches your needs and budget. Track the Home Loan Interest Rates – Check if your lender is offering you a fixed or a floating interest rate. Floating ones are regulated by market conditions and Home Loan EMIs may go or up while fixed will have a fixed EMI. If you don’t have a large income, you should opt for the fixed interest rate.   The Bottom Line Once you have analyzed these tips and improved your financial profile accordingly, you can avail a Housing Loan online and inch closer to having your own dream home! Best of luck! Watch Also:
    314 Posted by Aman Khanna

Categories This Author Writes About

View all blogs from everyone