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Home Loan Refinancing

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Home Loan Refinancing

In home loan industry the term home loan refinancing is used in two contexts.

1) Home loan balance transfer

2) Funding on the already purchased residential property

1) Home Loan Balance Transfer

When a home loan is transferred from an existing lender Bank/NBFC to a new lender Bank/NBFC, it is called as a home loan balance transfer. Meaning your existing loan is refinanced by the new lender whereby your existing loan with the existing lender Bank/NBFC is closed to be transferred to the new lender Bank/NBFC for the equivalent amount. Such a process of home loan transfer is referred to as refinancing in the home loan industry. The term refinancing is also referred to – commercial loan balance transfer & mortgage loan balance transfer.

Refinancing, loan switch over & loan balance transfer are some common phrases that are alternately used to address the same process of loan transfers.

2) Funding the already purchased residential builder property

Well, we all know about the funding provided on the property (residential as well as commercial) i.e. the home loan/commercial loan funding & the funding against the property i.e. the loan against property. But most of us are unaware of the funding provided on the already purchased residential builder property which is known as home loan refinancing. People have a misconception about home loan refinancing considering it to be mortgage loan/loan against property. However not known to many the following are the lesser-known facts about the home loan refinancing which remains unfamiliar in the society.

What do you mean by home loan refinancing?

Meaning: The word refinancing itself means financing again, and therefore home loan refinance means taking out a fresh new loan on the property which the borrower has already purchased from the builder through his own contribution funds. In such a scenario when an individual purchases a residential property from the builder through his funds without taking any home loan and within 6 months of the purchase of the property approaches the bank for the loan on the same property, it is called home loan refinancing. The loan amount in refinancing directly falls in the hands of the loan borrower.

Important highlights of home loan refinancing

1) The property in home loan refinancing has to be a residential property. No commercial property or resale property is considered for home loan refinancing.

2) Home loan refinancing is possible only in under construction builder properties or ready to move builder properties who’s OC (Occupancy Certificate) is yet to come.

3) However, it is important to note – the builder property that has received the OC – funding provided against the OC received property will not be considered as refinancing. It will be treated as mortgage loan/loan against property and therefore the standard mortgage processing fees and rate of interest will be applicable.

4) A loan borrower has to apply for refinancing within 6 months from the purchase of the property.

5) Important documents required for refinancing are the documents showing the payment made to the builder for purchasing the property, viz. builder payment receipt and the borrower’s bank account statement.

Benefits of home loan refinancing

1) Refinancing is best for a borrower who is looking for his immediate requirements of funds @ low cost for borrowings.

2) A loan refinanced within 6 months of the purchase of the residential property is considered as good as a home loan and therefore is also eligible for tax benefits.

3) Since it is treated like a home loan the applicable rate of interest is similar to that of home loan interest rates.

4) The calculation of LTV (loan to value) on the property is as per the home loan LTV guidelines.

5) There is no difference in the eligibility calculation of the borrower. The eligibility criteria for home loan refinancing remain the same as the home loan eligibility and loan against property eligibility.

6) There is no additional cost for home loan refinancing apart from the standard bank charges and fees.

7) All lender Banks/NBFCs provides home loan refinancing.

To apply for your home loan refinancing visit https://www.loanfasttrack.com/

Loanfasttrack also helps you to find the best bank for a home loan, instant loan in Mumbai– personal loan in Mumbai, mortgage loan in Mumbai and the business loan in Mumbai.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans, home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services include providing:

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

13 Important Things To Remember Before Prepaying Your Home Loan

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13 Important Things To Remember Before Prepaying Your Home Loan - loanfasttrack

Prepayment of housing loan means paying an additional amount to your home loan over and above the principal & the interest amount. Prepayment on home loan can either be in full or in parts. You can either choose to repay your home loan fully which is also referred to as home loan foreclosure/ home loan pre closure or make partial repayment of home loan as and when you have the surplus funds. This housing loan partial repayment is generally referred to as home loan part payments. Although a home loan is your long-term financial commitment and prepaying will help you to save a substantial amount of the interest outgo, it is important to understand its salient features before you choose to prepay.

In the following article, we will discuss the important things that you must be aware of before you choose to pay off your home loan in full or choose home loan partial repayment

  1. Do Not Use Your Emergency Funds

The funds which you set aside for your emergencies such as medical treatment, hospitalization, life covers, insurances, etc. are your emergency funds. By using your emergency funds, you defeat its very purpose and hence you may have to borrow additional funds later in the alarming situations of financial emergencies. Therefore, keep your emergency funds intact and use other alternatives to prepay your home loan. If you fall short on the emergency funds consider applying for a quick personal loan or mortgage loan. Also, Click to learn the difference between the two.

Also Read: Loans You Can Avail Against The Secured Pledge Of Your Property.

2. Do Not Liquidate Your Investments

Apart from the emergency funds, also do not liquidate those existing investments which you have invested with a specific purpose to meet your financial goals such as savings for your children’s education, higher studies, marriage, savings for your old age, etc. By liquidating you are again defeating the purpose of the investment and may have toavail a loan or additional loans in the future to meet your financial commitments.

Also Read: Everything That You Must Know Before Applying For An Educational Loan.

3. Consider Liquidating Your Surplus Investments

You may consider using the surplus funds on your investments such as the investments in fixed deposits (FD) & recurring deposits (RD) with the banks and PF withdrawal for home loan prepayment. The interest you earn on investing in fixed and recurring deposits may be less as compared to the interest you pay towards the housing loan. The interest earned on the FDs ranges from 3%-6% p.a. while the interest payable on home loans ranges from 7%-10% pa. Therefore, make a smarter move and use your surplus funds on the deposits to prepay your home loans. Additionally, you may also consider the returns on the investments of equities and mutual funds to prepay your housing loan.

Also Read: 10 Easy Ways To Know How To Repay Home Loan Faster.

4. Avoid Lenders Having Pre Closure Charges For Home Loans

You must compare and evaluate the lenders – Banks/NBFCs/HFCs and their best home loan schemes before you apply for a housing loan. When you prepay the lenders lose their interest earnings and hence, they charge a penalty for prepayment of home loan. The conditions and the home loan prepayment charges vary with the lenders and range from 2%-5% on the outstanding loan amount. Remember there are no foreclosure charges for home loans with floating interest rates but if you have a fixed home loan interest you have to pay a penalty for paying home loan early. It is therefore important that you carefully select the lender before you apply for a home loan. Consider applying for a home loan with ICICI Bank & a home loan with HDFC Bank who has nil housing loan pre closure charges on floating home loan interest rates and low housing loan foreclosure charges on fixed home loan interest rates.

ICICI home loan prepayment charges & ICICI home loan partial payment Charges 0% – 2% on outstanding loan amount
Home loan prepayment charges HDFC & HDFC home loan partial prepayment charges 0% – 2% on outstanding loan amount
Canara Bank home loan prepayment charges 0% on outstanding loan amount

Also Read: All Costs & Hidden Costs In Home Loan.

5. Ensure Your Prepayments are Reflected in the CIBIL Reports

Whenever you prepay your home loan, don’t forget to get it documented by collecting a NOC certificate for home loan closure from the lender Bank/NBFC/HFC. Your prepayment will be reflected in your CIBIL reports and hence repayment of a home loan before time is a sign of your financial fitness which further improves your CIBIL scores and your creditworthiness.

Also Read: Know How Your Home Loan Inquiry Impacts Your CIBIL Scores.

6. Choose Wisely Between the Loan Tenure and EMI

When you make part payment in home loans, the prepaid lump sum amount is deducted from your outstanding home loan principal and you pay interest only on the balance principal outstanding. Also, when you make part payments, either your loan tenure is shortened or your home loan EMI reduces. Depending on your requirements, choose wisely between the two as the reduction in the EMI will reduce your monthly burden while the reduction in the tenure will save on the total interest payable to the lender. Know how much you save on your revised EMIs with a home loan partial payment calculator.

Also Read: Importance Of Home Loan Part Pre Payment Calculator.

7. Prepaying the Loan at Beginning of the Loan Tenure

For any loans availed the majority of the interest is paid during the initial years of the tenure. Therefore, the home loan EMIs during the initial years have a higher interest component than the principal amount. The home loan prepayment benefits include savings on interest payable. Hence, when you prepay / foreclosure your loan during the initial period of the home loans you save on the interest component. However, if you are planning for additional loans and if your existing home loan is hampering your eligibility, you may consider repaying your loan even at a later stage.

8. Tax Saving on Your Home Loan

Your home loan qualifies for income tax exemption for housing loan repayment under 80(C) for a principal amount up-to Rs.1.5 Lakhs and under section 24b of income tax for the interest on housing loan up-to Rs.2 Lakhs. If you prepay, you may not get the home loan prepayment income tax benefits on a home loan. The interest which you will save by prepaying is likely to be much higher than the tax you will save. 

9. Evaluate Your Savings Through Home Loan Balance Transfers

You may choose to switch your lender for more savings on interest. This ensures that your existing investments are not liquidated to repay the loan and you also save on the interest amount. If your existing interest rates are high, click to know how to deal with the increasing interest rates of housing loans.

Best Home Loan Transfer Rates

Bank Name Home Loan Balance Transfer Rate Of Interest Processing Fees
ICICI Bank 6.80% p.a. – 7% p.a. Starts from Zero
HDFC Ltd. 6.75% p.a. – 7.40% p.a. Starts from Zero
Canara Bank 6.90% p.a. – 8.90% p.a. Rs. 10,000 + GST
Click to get the complete chart on interest rates for home loan with prepayment option

Kindly refer to the links given below to know the documents required for a home loan balance transfer.

For Salaried
For NRI
For Self-Employed
Proprietorship Firm Partnership Firm Private Ltd. Company

Also Read: Why Home Loan Interest Rates Of NBFCs Higher Than Banks.

 10. Evaluate if Investing the surplus is Better Than Prepaying

Check if the interest you save by prepaying the home loan is greater than the potential returns you earn by investing the same amount. If the interest you save is higher, you should prepay the home loan & if the returns on investments are higher you should invest. Well, the decision will be your personal preference depending on your needs. Additionally, you may also plan to grow your money by diversifying some portion of your surplus in the investments and remaining for prepaying and reducing your home loan burden. Grow your money by diversifying the investments in these 8 best plans to save.

Also Read: Everything You Must Know About SIP.

11.  Going for EMI is Better Than Opting for Pre-EMI

Pre-EMI is paid when you purchase an under-construction property while EMI is applicable when you take possession of the property. (Additional Read: Important loan facts while purchasing an under-construction property) In EMI you repay both the principal as well as the interest amount to the lender, while in Pre-EMI you pay only the interest to the lender. Also, the Pre-EMI period is not a part of your home loan tenure. Therefore, if you have sufficient income you should opt for the full EMI option right from the beginning because in Pre-EMI you cannot prepay a loan until you start paying the full-EMIs on your property. Also the earlier you start with full EMI, the sooner you will be debt-free.  Click to read our full article – If Pre-EMI is better than full EMI.

Also Read: Quick Guide To Difference Between Home Loan Builder Case & Resale Case.

 12. Do Not Forget to Take Heed of Your Current Age

Remember if you are nearing retirement, foreclosing the home loan with your surplus funds will be a suitable option because generally after retirement you have access to limited income which causes difficulty in the loan repayments. Also, as your age increases your medical expenses might increase resulting in home loan defaults. Therefore, try to prepay your home loan as early as possible before you retire.

Also Read: Home Loan For Senior Citizens & Reverse Mortgage Loan For Senior Citizens.

13. Choose Which Loan You Wish to Prepay First

Nowadays having more than two loans in your name is a very common scenario. If you are having more than two loans, for instance, a home loan, a personal loan (PL) / business loan (BL), and a car loan,  it is often difficult to decide which loan you prepay first. Under such circumstances consider prepaying your unsecured loans i.e., PL & BL over the home loan because such loans usually come with a shorter duration and have high interest rates which keep your monthly outgo high and they also eat a majority of your loan eligibility. Also, you do not enjoy any tax benefits on personal loans. Hence it is better to prepay your unsecured loans first over the home loans. Click to know everything about the unsecured loan i.e., the business loan.

Also Read: How To Manage Your Multiple Loan Repayments

Points To Remember

  • The prepayments are beneficial if the interest rates are more likely to increase in the future.
  • If you are finding it difficult to foreclosure your home loan, consider making part payment to your home loan. The part payments help you to either shorten your home loan tenure or to reduce your EMI. You save on the interest cost when you make part payments since the interest will be charged only on the balance outstanding amount. Hence pay in parts and reduce your interest burden.
  • There are no home loan prepayment rules which suggest you should visit the branch to pre-close your home loan. You can also make home loan repayment online for instance online partial prepayment of home loan HDFC, HDFChome loan online prepayment, ICICI Bank home loan prepayment online, ICICI home loan part payment online.
  • Foreclosure charges of home loans are different from the foreclosure charges on lap i.e., loan against property. Mortgage loan pre closure charges vary from 2% – 4% on the outstanding loan amount.
  • To avail of a home loan without prepayment penalty get in touch with us today.

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

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Loanfasttrack

Loanfasttrack is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, unsecured business loans, home loan transfer, top-up loans, loan transfers and apply for a business loan in Mumbai. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack specialized services include providing:

Additional Read:

Loan-To-Value Ratio (LTV) (All You Need To Know About LTV)

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Loan-To-Value Ratio

LTV Meaning

LTV is one of the major factors in determining your loan eligibility especially in secured loans such as home loans, mortgage loans & commercial loans where a property is pledged as a collateral to avail a loan. It is an important determinant based on which the lender Banks/NBFCs/HFCs approves the loan. LTV full form is Loan-To-Value. It is always expressed in a percentage.

The LTV ratio in housing loans differs with the market value of the property while the LTV ratio for the mortgage loans & commercial loans remain uniform irrespective of the loan amount and the market value of the property.

Importance Of LTV

  • The lender uses the LTV ratio to assess the risk involved in approving secured loans of home loans, mortgage loans and commercial loans.
  • The LTV helps you to know the maximum loan amount you can get against the property.
  • The LTV determines that the lenders do not over-lend to the cost of the property.
  • In mortgage loan/loan against property you can enhance your loan eligibility by considering your multiple properties for LTV calculation.

RBI Norms On LTV Funding

The RBI has set up norms on the LTV funding on the loans, for all lenders. According to the norms the lenders cannot lend above the standard loan to value ratio. Given below is the grid on the RBI guidelines on LTV funding Ratio, applicable for all lenders for home loans, mortgage loans, commercial loans & industrial property loans.

  Home Loan Mortgage Loan Commercial Loan Industrial Property Loan
Property Market Value LTV Ratio RBI   (% of the property market value)
Below Rs.30 Lakhs 90%     Up-to 70%     Up-to 70%     50% – 60%
Rs.30 Lakhs – Rs. 75 Lakhs 80%
Above Rs.75 Lakhs 75%

The LTV Ratio Calculation & Eligibility Calculation

The loan eligibility of the borrower is calculated on the basis of his income eligibility subject to the LTV funding ratio i.e. the lower figure of the two will be his loan eligibility. The eligibility will be calculated as under: –

a) Income Eligibility –
{[(Net income per month X FOIR %) – Current Obligation] ÷ Per Lakh EMI}

b) Eligibility as per market value of the property –
Market value of the property X applicable LTV %

(FOIR stands for fixed obligation against income ratio)

                        Loan To Value Ratio Formula

  • LTV calculation for Home Loan – Market value of the property X Up-to 90%
  • LTV Mortgage Loan – Market value of the property X Up-to 70%
  • For Commercial Loan – Market value of the property X Up-to 70%
  • For Industrial Property Loan – Market value of the property X Up-to 60%

Additional Read: 3 Popular home loan schemes of the top lenders

Best Lenders That Provide The Maximum Funding

  • HDFC – HDFC provides the best LTV ratio of 90% on the home loans & 100% funding on home extension loans and home improvement loans.
  • Canara Bank – Canara Bank provides the best loan to value ratio for home loans of 90% for purchasing a new property/builder purchase.

The major difference in LTV funding between private banks and nationalized banks is the age of the property. With many nationalized banks the LTV ratio for home loans is restricted to 80% or 75% depending on the age of the property. If the property age is less than or equal to 10-15 years the LTV ratio for housing loan will be restricted to 80% and if the property is more than 10-15years old the LTV ratio applicable will be 75% of the market value of the property. Further the LTV in home loan also varies depending on the quantum of the home loan that you borrow. While with the private banks the LTV ratio remains the same irrespective of the loan amount and the age of the property, the nationalized banks have low LTV ratios. 

LTV And Home Loan Interest Rates

High loan to value indicates higher risks for funding to the lenders while a low loan to value ratio indicates lower risks of funding. Therefore, a lower LTV ratio earns you a better chance for home loan terms and to get a home loan at lowest interest rates. The lower the LTV ratio the lower are the home loans terms & conditions and interest rates of the lenders and vice-a-versa.

There are banks whose home loan interest rates vary from applicant to applicant depending on their CIBIL scores and LTV %, such as SBI, Kotak Bank, etc. With SBI’s Flexi pay home loan and home loans with Kotak Mahindra Bank you will be charged with the interest rates which will vary depending on the LTV % of the market value of the property irrespective of the loan amount that you borrow. In Kotak the interest rates charged for home loans are divided into two LTV categories i.e., below 80% LTV on home loan and LTV between 80% – 90%. The interest rates for LTV 80% – 90% are 0.10%-0.15% higher over the interest rates available for the LTV below 80%.

However, the interest rates with the banks such as ICICI & HDFC which tops the ranking for maximum funding, has uniform home loan interest rates irrespective of the LTV ratios and the loan amount.

Important Notes:

  • Market value of the property is important to determine the loan to value.
  • Remember when your loan requirement is minimum against the high value of the pledged property, your LTV percentage is minimum and your chance to secure a low cost home loan/low cost mortgage loan/ low cost commercial loan & industrial property loan is high because of the low risk to the lender Banks/NBFCs/HFCs.
  • LTV constraints on the property funding is one of the common reasons why your home loan gets rejected or mortgage loan/commercial loan/industrial property loan gets rejected.
  • The lower the loan to value ratio the higher the own funds you need to pay to purchase a property.
  • The maximum LTV for home loan is 90% of the property valuation.
Apply For A Home Loan

Current Home Loan Interest Rates Of The Leading Banks

Bank Name Home Loan Rate Of Interest Home Loan Processing Fees Loan Tenure
ICICI Bank 6.80% p.a. onwards 0.30% of the loan amount + applicable GST Up-to 30 years
Limited period offers with ICICI Bank Zero processing fees (PF) for cases above Rs.1 crore. Applicable GST on the PF to be paid by the borrower. CLICK.
HDFC Bank. 6.700% p.a. onwards Up-to 0.50% – up-to 1.50% of the loan amount + applicable GST Up-to 30 years
Limited period offers with HDFC Bank Rs.5,900/- + GST (For Salaried) CLICK.
Canara Bank 6.90% p.a. onwards. Rs.10,000/- + applicable GST Up-to 30 years
Click to get the complete chart

By,

Loanfasttrack

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services include providing:

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Home Loan For Senior Citizens; Is This Possible?

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Home Loan For Senior Citizens; Is This Possible?

Yes, it is possible. Housing loans for senior citizens is possible. A retired senior citizen above the age of 60 years, drawing a monthly pension can definitely apply for a home loan. Age is just a number and as such getting a mortgage on a pension income is possible anytime provided the seniors have money to make a down payment, to pay the monthly instalments and to pay the property maintenance as well as property taxes. As correctly said “ You are never too old to buy a house of your own”. But post retirement when the income source is not steady and is restricted, qualifying for a home loan can be tougher.  

This is why banks are usually reluctant to provide the home loan for pensioners due to the risk of loan default. As a result we could see there are mainly nationalized banks that lead in providing housing loans for pensioners and only a few private sector banks and NBFCs. Griha Varishta of LIC housing, SBI Pension Loans, Maha Super Housing Loan Scheme of Bank of Maharashtra,  Bank of India Star Pensioner Scheme, Bank of Baroda & PNB’s loan for pensioners schemes, Canara Bank home loan for pensioners, etc. are some of the schemes by the nationalized Banks offering senior citizen loans for buying a house. The home loans by these banks are specifically tailored for the prospective home buyers who are living the retired life.

Home Loan Eligibility For Pensioners

Pensioner MeaningOne who has served a reputed company/ an education institution.An central or state government employee.Employed in a public sector undertaking (PSU).One who has taken voluntary retirement.One who has served in defence.
Who Can ApplySenior citizens above the age of 60 years.Senior citizens having monthly income sources.Senior citizens having a good credit history.
PurposePurchasing a new house.Purchasing a plot and for the construction of the house on the plot.Construction, renovation & repair of a new house.Construction, renovation & repair of an existing house.
Tenure15 years or 75 years whichever is earlier. (Some Banks also provide loans up-to 80 years but subject to conditions)
LTV70% of the market value of the property.
Home Loan Interest Rate For Senior CitizensDiffer from Bank to Banks and range between 7%p.a. – 9% p.a. At times the retired might be charged with high interest rates due to the higher expected lending risks.
Loan AmountMaximum subject to the income eligibility and LTV factor.
Use Home Loan EMI Calculator To Calculate Your Loan Eligibility

How To Improve The Chances For Approval?

The eligibility criteria for the loan approval remain the same for all i.e., income, assets, debts, and credit. However, it can be tougher to meet these criterias post retirement, especially when it comes to income, pensioners can consider the suggestions to improve their chances of home loan approval.

  1. Apply For Smaller Loan Amounts

Smaller loan amounts have smaller EMIs and can be easily served by the retirees. Try to keep the down payments high while keeping the loan borrowings to the minimum. In this way, it would not be difficult to pay the monthly installments. Ideally, the EMI amount should not be more than 60% of the take-home pension.

Also Read: Small Value Home Loans / Small Ticket Size Home Loans

2. Apply With Your Pension Bank

Apply with the bank in which the pension amount is received. Banks generally provide the home loan only to those pensioners having pension accounts in their respective banks. This improves your chances for loan approvals. However, it is also possible to get a loan from other banks who provide home loans for retired persons provided all the eligibility criterias are met.

Also Read: 10 Important Home Loan Tips.

3. Provide Collateral

Provide heavy collateral such as mutual funds, immovable assets such as residential property, commercial property or plot, heavy machinery, etc. If a substantial retirement fund is built up over the years, these funds can also be used as a guarantee on the home loan.

Also Read: 10 Common Home Loan Mistakes.

4. Close Other Loans

The senior citizens must have enough ongoing cash to repay the mortgage. Having multiple loans or more than one loan means more debts which means more liabilities and more EMIs to pay. Having more than one loan by your side will affect your home loan eligibility and hence it is advised to close other loans before applying for financing and ensure to keep the credit exceptional and debt-to-income ratio low. Home loans for pensioners with bad credit are not entertained.

Also Read: 10 Easy Ways To Know How To Repay Home Loan Faster.

5. Apply With An Co-applicant

Many times the pension amount is limited compared to the monthly salary income which resists in availing higher loan amounts for the pensioners. Also because of age the loan tenure is shortened which results in heavy EMI outgo per month. Hence it is advised to apply for a senior citizen housing loan along with a working hand in a family. The pensioners can add his/her son, daughter or daughter_in_law as a co-applicant to the home loan and take their age & income to his/her advantage. This will earn improved eligibility and loan tenure for the pensioners.

Also Read: 4 Important Benefits Of Applying Joint Home Loans

6. Maintain Credit Score & Avoid Multiple Applications

Credit score is yet another vital factor considered by the banks while providing the home loans to its borrowers, be it a young borrower or a retired pensioner. Those with credit scores of 750 & above are considered financially disciplined which lowers the funding risks for the banks. It is therefore important to maintain the credit score throughout life. A good credit score at times also earns a better home loan interest rate for the senior citizens. Additionally it is also advised not to make multiple loan applications at a time, this may reduce the credit score of the borrower.

Also Read: CIBIL And Its Significance In Home Loan.

Documentation For Pension Home Loan Scheme

 PensionerCo-applicant
KYCPan Card, Aadhar Card, Latest Passport size photograph & Residence Proof.Pan Card, Aadhar Card, Latest Passport size photograph, Residence Proof & office proof.
Income Documents12 months pension account statement.   12 months other bank account statements.For salaried – 4 months Salary Slips, 6 months Bank Account Statement, 2 years Form 16.   For self-employed – CA certified copy of latest 3 years ITR with Saral form, Balance Sheet, P&L Account, Capital Account, 12 months bank account statements of all bank accounts savings + current account.
Property DocumentsPrior Chain of AgreementOC/CC + approved plansIndex 2Share CertificateSociety Registration CopyProperty Tax Receipt                                  
Other DocumentsDuly signed home loan application formProcessing fees cheque

For a detailed home loan list of documents kindly refer to the following links.

  1. Home loan Resale Case for salaried, for self employed – Proprietorship firm, Private Ltd. Company, Partnership Firm. 

Conclusion:

With excellent credit, a low debt-to-income ratio, and a strong financial portfolio mortgage loan for senior citizens is definitely possible. But before applying for a home loan as a pensioner, it could be worthwhile obtaining professional financial advice to help achieve the property investment in a realistic way. With experts like Loanfasttrack, nothing can stop you from finding the house of your dreams at any age.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai,business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services include providing:

Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Additional Read:

Hey Self-Employed! Know the Following 8 Business Conditions if you are Applying for a Home Loan or Mortgage Loan.

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apply for home loan and mortgage loan

Mr. Gopal is a proprietor of a small company, which is a new start – up. Gopal is planning to purchase a new residential apartment for his family. Gopal ran pillar to post, made multiple loan enquiries with the home loan lenders for his housing loan requirement. He also applied with the lenders (Bank/NBFC/HFC) but faced rejections. Tired of the rejections, Gopal thought of applying for a mortgage loan, by providing property security to the bank instead of going for a house loan, yet faced rejection of his mortgage loan application.   

Why was he not eligible for a loan? Let us see what are the reasons for his loan rejections.

Lenders (Bank/NBFC/HFC) have their own guidelines, have their own funding rules and regulations, which makes a borrower eligible or non-eligible for a loan. Mentioned below are 8 such conditions of the businesses for the self-employed: –

Business Conditions for Self –Employed Applying for Home Loan and Mortgage Loan:

1) Business Age:-

How old is the business? is very important. Since how long the borrower is running the business i.e., the business continuity, does matter. Number of years into the business decides whether he qualifies to get a home loan. It is one of the important conditions of the lenders because it shows the regularity of the borrower’s income. A business should be a minimum 3 years old. 

2) Business Proof: –

The business must be registered and a loan borrower must have a proper business proof. Company Pan Card, Ghumastha license, MSME registration certificate, Aadhar Udyog, valid Partnership Deed, GST, etc. are the valid business proofs.

3) Company Profile: –

Borrower must provide company profile details on its company letterhead. The company profile must contain company details, official address, registered address, company owners/directors/partners, company structure, type of company, company incorporation date, nature of business, number of employees, etc.

4) Mandatory Office:-

Residence cum office operation of the businesses is usually not considered by the lenders. If the loan borrower is running/operating his business from home, such a profile may not be considered for applying for a loan by some of the banks. For example, home tuitions, commission agents, brokers, insurance agents, real estate brokers are some of the profiles of the borrower which may face difficulty in applying for a loan. For such profiles who operate their business from home, banks have special products under which they make them qualify for a loan. But remember, under such a product, the borrower may require to pay higher charges and interest rates to get the loan.  

5) Current Account: –

Any self-employed individual whether, proprietor, partner, director, professional, free lancer and even the profiles with residence come office business operations, it is mandatory to have a current account. All the business transactions must route only through the current account. Current account with any bank either private or a nationalized bank is acceptable.

6) Banking Transactions:-

Just by merely opening the current account is not beneficial. The current account must reflect his business transactions. At times the borrower may not be eligible for loan as per the ITR copy but if he has maintained good banking transactions, he might be eligible for loan under the banking product. Banking transactions and average balance maintained in the account is the basis of the banking product.

7) ITR Copy:-

Latest 3 years duly filled ITR copy is mandatory along with Saral Copy, computation of income, Balance Sheet, Profit & Loss account and Capital Account.

ITR must be filled on year-on-year basis. Same dated ITR for the last 2 years is not accepted. A minimum of 6 months gap between the fillings of the two ITR is mandatory.

For self-employed of new start-ups, companies with ITR not filled, loans cannot be provided.

8) Cash Income Not Considered: –

No cash income is considered for home loan or mortgage loan. If the borrower is running a business and is making cash profits and cash incomes, such income is not considered for loan. Cash incomes of the LIG, EWS & MIG categories can be considered only for availing a home loan under PMAY Affordable Housing Loan schemes. Examples of small cash business are, home tuitions, vegetable vendors, scrap business, pan shop, general store, grocery shop, etc. However, some lenders may also consider providing a home loan to a loan borrower other than the LIG, EWS & MIG provided he maintains a proper cash register of his sales. The cash register must maintain the daily sales figures and the entries of day-to-day cash expenses and incomes. However, the borrower with cash income is exceptionally charged with higher interest rates and fees.

On the other hand, cash income for availing a mortgage loan is usually not considered by the lenders – Bank/NBFC/HFC.

By- Loanfasttrack.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services includes providing:

Visit us on https://www.loanfasttrack.com/. You can also email us on info@loanfasttrack.com or speak

10 Important Home Loan Tips

by admin
10 Important Home Loan Tips

Purchasing a home is a dream come true for many of us. Therefore, finding a perfect home is important whether you purchase a house for stay or for investment purposes and so is finding a perfect home loan important for making that dream come true. Since a home loan will be your long-term financial commitment, finding the perfect lender becomes equally important and hence the following house loan tips can help you to get a loan that is just right for you.

Top 10 Housing Loan Tips

  1. Make Good Research

Just because your friend or relative has applied with Bank X, it doesn’t mean you apply with the same bank with their experiences. Decision to select a lender Bank/NBFC/HFC depends on your unique financial circumstances and requirements. You must therefore make a good research on the existing housing loan deals matching your requirement (of higher home loan eligibility, lowest home loan interest rates, lowest home loan processing fees, etc.), home loan products (fixed rate, overdraft, floating rate, etc.) before you apply with any lender.

Home loan tips for first time buyers please refer to the link “Everything You Must Know Before Applying For A Housing Loan”.

2. Plan Your Budget, Plan Your OCR

Down payments are vital in a home purchase. You should save enough to make your down payments to the builder/reseller & make arrangements for your own contribution (OCR) amount for purchasing a house. The OCR contribution differs with the cost of your house. As per RBI guidelines the maximum funding allowable on the property is up-to 90%, which means you need to plan your budget for the rest 10% of your OCR. Use your savings or apply for a mortgage loan or instant personal loan if you are falling short of OCR.

Remember the higher the down payments the lower will be your loan amount and therefore lower will be your home loan EMIs. Know how much monthly installments you can afford to pay using Loanfasttrack’s home loan EMI calculator.

3. Track Your CIBIL Score

The lender pulls your CIBIL report every time you apply for a home loan to ascertain your credit worthiness. A good credit score can earn you the best deal on home loans. A good CIBIL score above 750 can earn concessions on the home loan interest rates and also improves the chances of loan approvals. You must therefore maintain your credit history, make timely repayments of your bills, credit cards, etc. to avoid your CIBIL scores from diminishing, before you apply for a house loan. A poor CIBIL score not only lapses your chance for the best deal but also rejects your home loan application.

Also Read: How To Apply For Home Loan With Bad CIBIL Score – By Loanfasttrack

4. Know Your Eligibility

You must understand how much you can afford to pay prior to applying for a home loan. You must figure out what EMI amount is affordable which you can serve easily. A home loan calculator can be of great use. The calculators are easily available online. Use Loanfasttrack’s EMI calculator. Simply enter your desired loan amount, interest rate and desired loan tenure to check how much EMI you can afford to pay.

For higher loan eligibility you can apply for a joint home loan. Click to read the benefits of applying for a joint home loan.

5. Keep Your Documents Ready

Before applying for a housing loan, keep your required set of documents ready. This will help in faster processing of the loans. You have to submit the KYC, financial and property papers to the lenders to get your loan approved.

For the detailed list of documents please refer the links below:

Proprietorship Firm Partnership Firm Private Ltd. Company
Builder Case Resale case Builder Case Resale case Builder Case Resale case

6. Compare and Evaluate The Offers

You must compare, evaluate and choose among the various home loan offers of the lenders that best suits your requirement. Don’t merely choose a lender Bank/NBFC/HFC because it is offering lower processing fee or a lowest interest rate for home loan. There are other factors which can make the home loan expensive for you, such as the loan repayment tenure, LTV funding norms, loan terms, foreclosure charges & conditions, other costs involved like legal, technical, administrative, etc. So don’t get fooled, and know all the costs involved in availing a home loan before you make a decision to apply for a loan.

Click to compare home loan offers of leading banks.

7. Apply For A Pre-Sanction Home Loan

Get yourself pre-approved for a home loan before you finalize the property. This will help you to know your exact eligibility and accordingly plan your budget for a house and you no longer have to worry to arrange for those shortfalls of funds if you go and buy an over budgeted property.

Click to know more on pre-approved home loans.

8. Carefully Read The Loan Agreements

Make sure you go through the entire loan agreements before signing it. It may be tedious and exhaustive to go through long pages of loan agreement but it is important that you know the bank clauses and terms and conditions with respect to home loan charges, instalments, rate change, notifications, hidden costs, etc. which if overlooked may cost you later.

Additional Read: 10 Common Home Loan Mistakes

9. Maintain Written Communications

Avoid making only verbal communications with the lenders. It is crucial you have a written proof of the verbal commitments & offers provided by the lender, because verbal commitments at times may not be honored by the lenders. Therefore, take the offer commitments in writing, prefer email communication for your safety.

10. Choose The Correct Home Loan Product

Choose the home loan product which is best suitable for you. Wisely choose among the products (fixed rate home loan, smart home loan, etc.) & repayment tenures that best suits your requirement. The tenure and EMI’s are inversely related. The higher the tenure the lower the EMI’s & vice-a-versa, but remember the longer the tenure the higher is the interest you pay to the bank.

For additional information on home loan Contact Loanfasttrack:

Website – www.loanfasttrack.com

Email – info@loanfasttrack.com

Tel – 9321020476

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services include providing:

10 Common Home Loan Mistakes

by admin
10 Common Home Loan Mistakes

Since home loan is a long-term financial commitment, the choice of selecting the best suitable home loan is the most crucial decision, which if taken correctly can save money in both short term as well as in long term. But there are these few common mistakes usually committed when it comes to availing a home loan.

1) You forget to make comparison of offers

You believe that with the lowest interest rate and zero processing fees from one lender- Bank/NBFC/HFC, you have got the best deal on your home loan. The deal can’t be the best deal unless it is not compared with the other from various lenders. It is therefore important that you compare the offers from other lenders as well before availing a housing loan.

2) You forget to select the correct product

You select the wrong product for yourself due to lack of awareness on the availability of the different home loan products namely, fixed interest rate home loans, floating interest rate home loans, home loan with overdraft facility, smart home loan product, etc. You have to select the appropriate loan product according to your requirement or else you will land up taking an incorrect loan resulting in paying a higher rate and charges & finding it difficult to repay later on.

3) You forget to read the fine prints, terms and conditions of the home loan

You feel happy when you have bargained the best deal. But most often you forget to read the offer documents, forms, bank agreement and their policies-terms of conditions.  It may be tedious and exhaustive to go through long pages of loan agreement but it is important that you know the bank clauses and terms and conditions with respect to home loan charges, instalments, rate change, notifications, hidden costs, etc. which if overlooked may cost you later.

4) You blindly make signatures

You make blind signatures on the forms as suggested by the lender’s representatives without knowing which form you are signing. The forms contain the clause of cross selling other bank products such as property insurance, compulsory account opening, credit card selling, etc. Your blind signatures give your consent of acceptance that authorises the lender to cross sell.

5) You forget to get acknowledgment copy of your documents submitted

You never kept track of and demand acknowledgment for original property documents submitted to the bank or to its representatives. Ask the senior if the representative has no power to give you the receipt of acknowledgement. Take email confirmation from the authorized manager of the lenders for the receipt of your all-original documents.

Click to know the detailed list of documents required for applying for a home loan. 

6) You forget to take written commitments from the banking representatives

Verbal commitments are not usually honoured by the representatives. You should insist on having a written communication with the concerned representative of the lender. Take email confirmation on the loan process, implied charges, loan sanctioned and disbursement process, turnaround time, special discounts, offers, rate of interest, documents required and documents submitted, etc.  

7) You do not have own contribution funds for OCR

You do not have sufficient own contribution to pay towards OCR / down payment for loan. You expect the bank to over-fund for your shortfall amount of OCR or to cover the cost of GST in the loan amount.

Also, you must know the banking guidelines on loan funding according to which the lenders will not disburse the loan unless you make the OCR payment/down payment.

8) You take loan for short tenure

You keep your repayment term low to save on the interest and land up paying higher EMIs, which at times become difficult to repay and you land-up paying penalty to the lenders along with the delayed EMIs. This also impacts your CIBIL score. 

(Is your CIBIL low? Facing difficulty in applying for a housing loan? Take a solution from Loanfasttrack)

Home loans come with a maximum tenure for up-to 30 years with nil pre & part payment charges. Hence even if you take a home loan for maximum tenure and repay it early you do not have to pay any penalty.

9) You switch to become self-employed from salaried

If you are self-employed, you need to submit a business continuity proof with a minimum business vintage of 3years to 5 years. So, when you switch from salaried to become self-employed you overlook these banking policies thereby facing assured rejections of your home loan applications.

10) You don’t study your savings evaluation

You keep high credit card dues and expensive personal loans instead of closing them with cheap top-up loans. You fear the burden of the extra closure charges and forget to evaluate the savings which can be made from availing the cheap top-up loans. The cost to avail the top up loan and the rate of interest for the top-up loan is cheaper in comparison to the heavy financial charges on credit cards and high interest rates of personal loan.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Contact Loanfasttrack on: www.loanfasttrack.com or call on 9321020476 or email on info@loanfasttrack.com.

Loanfasttrack’s specialized services includes providing:

Pre-Approved Home Loans / Pre Sanction Home Loans

by admin
/ Pre Sanction Home Loans

Key Features:

  • Home loan is sanctioned even before finalizing the property.
  • Pay only nominal cost to get pre approved for mortgage/ home loan.
  • Instant home loan approvals.
  • Maximum validity of 6 months for the pre approval for buying a house.
  • Apply for pre approval home loan online from the comfort of your home.
  • Instant e-approvals on online home loan applications.
  • Pre-approval from multiple lenders possible.

What Is a Pre-Approved Home Loan & What Are Its Benefits?

House loan pre approval means prequalifying for a home loan even before you finalize the property. Pre-approval for a loan is similar to a regular home loan. Also referred to as pre-sanction loan, in-principal approval or in-principal sanction, the pre-approved home loan is provided only on the basis of your repayment capacity which is determined by your financial position & income, income stability and through your creditworthiness. Your creditworthiness is verified by pulling out your CIBIL report. (Click to know how your multiple home loan inquiries has an impact on your CIBIL scores.) To prequalify for home loan, you are required to submit the mandatory documents i.e. your KYC, financial documents and login fees to the lender Banks/NBFCs/HFCs. Similar to regular home loans, processing fee is also applicable for pre-approved home loans as well. The lender Banks/NBFCs/HFCs initially charge you with a nominal processing fee also referred to as login-fee, which is then adjusted from the final home loan processing fees at the time of disbursement.

You can get pre approved for a home loan for the following:

Home Loan Balance Transfer @ Lowest Rate For 6.80%*p.a. – Apply Today
Apply for mortgage pre approval with ICICI Bank – Click Loanfasttrack.

Details Of Home Pre Approval Loan

Meaning Of Home Loan Approval In-Principal: Home loan in-principal approval means getting prequalified for a home loan even when you have not finalized the property.

Who Can Apply: All Indian residents whether salaried, self-employed, self-employed professionals, company & non-resident Indians i.e. an NRI can apply for bank pre approval home loans.

Pre Approved Home Loan Validity: Lender Pre Approval validity varies between the lender Banks/NBFCs/HFCs. The home purchase pre approval letter comes with a limited period of validity, generally from 3 months to 6 months within which you are supposed to finalize the property.  (Read: Why Home Loan Interest Rates Of NBFCs Higher Than Banks)

Even if you fail to finalize within the validity period, no worries, Loanfasttrack will help you to reappraise the home loan with no extra or nominal cost. To know more how? – speak to our experts on 9321020476.

Home Loan Pre Approval Time Frame: Pre approval home loan time frame i.e. the turnaround time differs between the lender Banks/NBFCs/HFCs. Physical processing of home loans generally takes 5-7 working days to get preapproved for a loan. Since the recent past, some lenders have started providing the facility of instant home loan approval online by allowing you to make an online mortgage pre approval application. Online processing for getting prequalified for a home loan is the best way to get pre approved for a house loan because it is a convenient, fastest and easiest way and can be applied from anywhere & from the comfort of the home. For example, you can get instant home loan pre approvals just within 8 hours with ICICI Bank’s express home loan product.

To apply for easy home loan pre approval and instant mortgage pre approvals from leading banks – HDFC pre approved home loan & ICICI pre approved home loan– call Loanfasttrack today.

Processing Fees For House Pre Approval Loan: Standard Processing fees apply for getting prequalified for a home loan. You can get an in-principal sanction just at a nominal cost of the login fees. However, if you do not finalize the property within the validity period of 6 months the processing fee paid to the lender remains non-refunded. Hence to avoid the chaos the lender initially collects only the login fees and collects the remaining processing fees at the time of disbursement. (A must-read article on- what is the total cost associated to get a home loan.)

Apply for mortgage pre approval online with HDFC Bank through Loanfasttrack at lowest interest rates and enjoy cashback offers on processing fee*

Documents Required For Mortgage Pre Approval: Lenders collect the following mandatory documents for validation, which are: –

  • KYC: Pan Card, Aadhar Card, Latest Passport size photograph, Office proof & Residence Proof.
  • Income Documents Needed For Pre-approval:
  For Salaried For Self-Employed
Income Documents Latest 4 months Salary Slips.   2 years Form 16 Latest 3 years ITR with Saral Copy, Balance Sheet, P&L Account, Capital Account.
Bank Account Statement 6 months. 12 months (savings + current account).

For a complete document checklist, click on the links.

Home Loan Pre Approval Process: Below given is the process to get pre approved for a home loan: –

  • For the offline home loan pre approval application.
    => Prepare the documents checklist as mentioned above.
    => Scrutinize & shortlist the lender Bank/NBFC/HFC providing you with the best home loan deal. (Click to get the comparison chart of the best home loan deals of the leading banks.)
    => Submit the duly signed application form along-with the essential set of documents to the lender. You can either visit the lender in person to make the application or make a smart choice by opting for free home loan services of the top banks through Loanfasttrack.
  • For home loan pre approval online.
    => Prepare the documents checklist as mentioned above.
    => Visit the official website of the lender Bank/NBFC/HFC or contact Loanfasttrack the official housing loan DMA of the leading banks to get the links.
    => Fill your required mandatory details and upload the documents (KYC & Income Documents).
    => Pay the nominal login fees online.

At times the online process might be confusing, you may face technical errors and troubleshoots might cause problems while loading your loan details. Hence take support & guidance from Loanfasttrack and learn how to apply online for home loan, mortgage loan & loan transfers.

Additional Read: Online Vs Offline Home Loan – Which One Is Better?

How To Apply For best pre approval home loan: Whether online or offline whichever way you prefer, Loanfasttrack will provide you with timely assistance round the clock; simply visit us on: www.loanfasttrack.com or call on 9321020476 or email on info@loanfasttrack.com.

Things Needed For Pre Approval Of Home Loan

  • You must have a regular & uninterrupted flow of income.
  • You must have a good CIBIL score of above 750. (Click to know how to get pre approved for a home loan with bad credit)
  • You must have a stable employment.
  • You must have a justifiable & legal source of income.
  • You must have a minimum business vintage of at-least 3 years.
  • You must possess all the required sets of documents required for getting pre approved for a house loan.

Difference Between Regular Home Loan & Bank Pre Approval Home Loan.

  Regular Home Loan Home Loan Pre Approval From Bank
Processing Fees Full processing fee collected on the sanctioned loan. One-time non-refundable login fees.   Remaining processing fees to be collected at the time of disbursement.
Rate Of Interest Current prevailing interest rate as on the date of sanction will be applicable. Current prevailing interest rate as on the date of disbursement will be applicable.
Validity Immediate or maximum 6 months. 3 months – 6 months.
Property Legal & Technical Mandatory. Not required.
Documents Required KYC, Income Documents & Property Papers. KYC & Income Documents.
Turnaround Time For Disbursement Delay in home loan sanction delays the disbursement process. Fasten the disbursement process.

Benefits Of Pre-approved Home Loans

  • Faster Home Loan Disbursement: –

Getting qualified for a home loan even before finalizing the property fasten the home loan disbursement process. The major time and delay (if any) is faced only during the sanction process. Sanction is the main process of scrutinizing your creditworthiness, assessing the funding risk and calculating your home loan eligibility. Hence when you are pre-approved you have already saved on the time which makes your disbursement faster. Pre-approval is therefore useful when you have less time and a shorter transaction window for the process.

  • Easy Searching For Your Desired Home: –

Once you know your home loan eligibility after pre approval home loan, searching for your desired dream house within your budget becomes easier. You can therefore plan for your finances, property budget and preferred location for the property. For instance, if you are pre-approved for an amount of Rs.50 lakhs you can plan for the house purchase approximately within 45 lakhs – 55 lakhs.

  • Improved Negotiations With Builder/Seller: –

If you have a home mortgage pre approval, you are considered to be a serious buyer. The home loan pre-sanction letter will give you an essential funding power to negotiate with the builder/seller for your favorable deal. Additionally, with the pre-approved power you may also get attractive discounts on the deal due to your ability to make faster payments as compared to other buyers and may also receive preferential treatment over others.

  • Helps To Plan Your Finances

With pre-approved home loans, you know your exact home loan eligibility well in advance and therefore can plan accordingly for your house purchase within your budget. You know exact how much you will be funded and how much own contribution i.e. OCR you need to arrange for the house purchase.

  • And lastly but important, if you have a pre- approved home loan, you will never miss out a good property deal.

Please Remember:

Your final loan terms for interest rate & processing fees will be worked out only at the time of disbursement. Interest rates might change in course of time and you might be benefited from the reduced interest rates and lesser home loan EMIs. (Lender’s interest rates change with a change in the RBI’s repo rate.) You will be charged with the rate of interest prevailing on the disbursement date, even if you have banged the best deal for the home loan terms now. Additionally, you will also be charged with a revised fee structure at the time of disbursement, if the disbursement does not happen within the prescribed period under which you have taken the opportunity to sanction your home loan with a limited period processing fee offer offered by the lender. These terms and conditions will be mentioned on your sanction letter. (Read our previous post on how to read the sanction letter.)

FAQ (Frequently Asked Questions)

Q. How much does it cost to get pre-approved home loans?

Ans: Standard processing fees are applicable to avail the pre-sanction home loan. Initially you pay only a login fee, remaining processing fee is collected at the time of disbursement.

Q. How long is a pre approval letter valid?

Ans: Pre approval letter validity is available for a maximum period of 6 months. With some lenders it is also limited to 3 months.

Q. I want to get pre approved for a home loan? Which is the best bank to get pre approved for a mortgage?

Ans: Click to make your own comparison for the best bank for home loan.

“https://www.loanfasttrack.com/home-loan/apply-online-now.html”.

Q. Home loan rejected after pre approval- is it possible?

Ans: The home loan disbursement is subject to your property meets the legal and technical due diligence guidelines of the lender Bank/NBFC/HFC. Home loan denied after pre approval is possible in cases- where your property has no clear and marketable title, the property is not within the approved city limits (as per the funding guidelines of the lenders), the property you are purchasing is a grampanchayat/chawl/pagadi property, the property is not approved from the approved authorities, etc. 

About Loanfasttrack:

Best way to get pre approved for a home loan is to contact Loanfasttrack on: www.loanfasttrack.com or call on 9321020476 or email on info@loanfasttrack.com.

Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Loanfasttrack’s specialized services includes providing:

Also Read Our Popular Posts:

Housing Loan Benefits For Women Borrower In India

Online Vs Offline Home Loan – Which One Is Better?

by admin
Online Vs Offline Home Loan - Which One Is Better?
While everything around is changing and meliorating rapidly, how can the home loan industry lag? ……………………………… For online home loan processing, all you need is an internet connection and a machine (laptop/desktops/computers/mobile phones).

In today’s scenario we cannot imagine a life without technology. It is this technology that has eased the life of a common man. Even the population in the rural areas has elevated to smart gadgets by using the smartphones, smart-watches and smart-televisions. This technological advancement has made life convenient for people since they no longer have to wait in long queues for utility bill payments or step out to buy daily veggies, groceries, for phone recharge, visit banks for statements, etc. The technology has made all this possible simply just at a click of a button from the comfort of our homes while sitting relaxed with a coffee mug.

While everything around is changing and meliorating rapidly, even the home loan industry is no more an exception. Especially after the pandemic outbreak when the sale numbers of the mortgage industry took a toll, the online presence of the home loan processing became prominent after the lockdown which paved the way for mortgage lenders such as ICICI Bank Ltd., HDFC Bank & HDFC Ltd., etc. to step into the world of online housing loan processing by launching their customer friendly user portals for processing paperless loans through online home loan applications.

Although the physical offline processing for home loan still continues, the online process to “apply for housing loan online” has gained momentum over the offline process since its inception mainly because of its merits which are easy and speedy processing, hassle free documentation, online loan tracking, etc. Whether to follow a traditional offline home loan process or opt for an online process, is purely a discretion of the home loan borrower, however it is of vital importance that he understands the following merits and demerits of both processes before making a decision to apply for home loan.

The Offline Vs Online Home Loan Comparison

The offline and online home loan differ only till the process of home loan sanction. The fact that the home loan is applied digitally & or physically is the only base for differentiation between the both. The digitalization of the entire housing loan process till disbursement is yet not in practice with any lender. Lender banks who have opted for online digital platforms only process the borrower’s home loan applications for loan sanctions. For disbursement, yet the offline process is prominent. Let’s understand the individual process.

What is the Offline Home Loan Process?

It is the traditional way of processing an home loan application where the loan borrower undergoes the process of physical signing and submission of bank application forms along with the key documents i.e.KYC, income documents & property papers. The borrower also might require to visit the branch to apply for home loan and to submit the hard copies of the home loan documents required especially while applying for a house loan with nationalized banks. The offline is a time consuming process which nearly takes 7-10 working days for the loan to sanction mainly because the submitted documents are physically verified and scrutinized at various processing desks such as RCU- document scrutiny, Risk desk- CIBIL check, application form check, credit scrutiny, home loan eligibility calculation and finally credit manager’s personal discussions with the borrower to establish the loan credibility.

In offline since everything is done manually, manual processing and manual submission of the hard copies, there are possibilities that important documents may get misplaced or lost while in transit. The offline process is usually suitable for those home loan borrowers who are not internet savvy and for those who believe in obtaining personal one-to-one services from the bankers.

What is the Online Home Loan Process?

It is a new web based way of paperless processing of an home loan application through online portals of the mortgage lenders. It is an end-to-end online loan approval process. The borrower need not visit the branch or sign the agreement or make photocopies of the documents. The forms are filled online and stored digitally thus making it convenient for the borrower to apply for an instant home loan from anywhere just at a click by simply visiting the secured online portal of the lenders and uploading the documents. This is a less time consuming and speedy process in comparison to the offline home loan process. A computer/smartphone and an interest is all what is required. The borrower must be internet geeky to make use of this speedy process. However even if you are not, no worries, Loanfasttrack is at your rescue; anytime get in touch with us. The online process is simple, the borrower has to simply register himself on the lender’s portal / website, fill in the application form with required requisites, upload the documents and submit. The borrower can also check his home loan eligibility online using the home loan eligibility calculator. (Click the links to get a complete list of documents till disbursement, salaried resale case/salaried builder case, self-employed resale case- Proprietor/Partnership Firm/Pvt. Ltd. Co., self-employed builder case- Proprietor/Partnership Firm/Pvt. Ltd. Co.)

Tracking of online housing loan applications is also easy and convenient with an online process. Unlike the offline process where heavy follow ups with banking personals are required, in online processing the progress on the file is regularly updated online from time-to time making it easy to track the file status. (Learn How To Apply Online For Home Loan, Mortgage Loan & Loan Transfers – By Loanfasttrack.)Given below are the key benefits to get home loan online.

  1. Easy and speedy way of processing home loan applications.
  2. Faster sanctioning of home loan.
  3. Can be applied from anywhere from the comfort of your home.
  4. No need to sign a physical multi-paged home loan application form.
  5. Get to know the home loan eligibility instantly. (For an easy and speedy way to calculate your eligibility – use Loanfasttrack’s EMI calculator.)
  6. Simple and easy process with standing instructions available on the portal with prompting pointers to fill in the required details.
  7. The portals are secured and user friendly.
  8. Time saving process, no need to make multiple visits to the lender branch.
  9. Easy documentation. Simply upload the required documents. The required set of documents will be listed on the portal/website.
  10.  Easy tracking of the loan application. No need for hard follow ups with the bank managers.
Apply For HDFC Home Loan Online – Get A Link.

What documents need to be uploaded for the loan approval?

The borrower needs to upload the following documents for online bank home loan:

1) KYC (Of applicant & co-applicants) – Pan Card, Aadhar Card, Latest Passport size photograph, Office proof & Residence Proof.

2) Income Documents (only of the applicant/co-applicant whose income is to be considered for loan application):

  1. For Salaried – 4 months Salary Slips, 6 months Bank Account Statement & 2 years Form 16.
  2. For Self-1employed – 3 years ITR with Saral Copy, Balance Sheet, P&L Account, Capital Account, 12 months bank account statements of all bank accounts savings + current account.

Prerequisites to opt for quick home loans online

1) One needs to be tech-savvy. Must have online knowledge of computers and the internet.

2) Must have access to a good internet connection.

3) Keep balance in the bank account for upfront deduction of non-refundable login fees.

4) Must keep the required set of documents ready to be uploaded online for home loan online apply.

Apply For ICICI Bank Home Loan Online – Get A Link.   Get Home Loan Sanctioned Online Within 8 Working Hours With Express Home Loan Of ICICI Bank

Instant Comparison Chart For Online & Offline Home Loans

  Online Home Loans Offline Home Loans
Turnaround time (TAT) Speedy process.Loan is sanctioned within 3-5 working days.No follow ups or push-ups required. Time consuming.Loan is sanctioned within 7-10 working days.Hard push-ups required for speedy processing.
Tracking of application Easy. File status is uploaded online from time-to-time. Hard follow-ups with bankers.
Eligibility Prompted instantly on feeding the important financial data. Actual calculation is a time taking process.
Documentation Hassle free. Documents can be easily uploaded on the portal.No risk of loss of documents in transit. Hard copies of the documents need to be submitted. Risk of documents being misplaced or lost in transit.
Loan Charges The processing fees (PF) and other relevant charges are displayed on the portal along with any PF offers. At time complete charges are not communicated at the time of login.
Suitable For Those who are tech-savvy. Those who believe in taking personal one-to-one services from the banker.

With the help of online home loan companies such as Loanfasttrack it is easier for the borrower to compare the best banks for housing loans just at a click. Whether online or offline whichever way you prefer, Loanfasttrack will provide you with timely assistance round the clock with its years of experience in mortgage industry offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans, car loans and loan transfers. Loanfasttrack is a Mumbai based loan provider company since 2015 & is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.

Visit www.loanfasttrack.com.

Seek expert advice on 9321020476.

You can also email on info@loanfasttrack.com.

Loanfasttrack’s specialized services includes providing:

Additional Read:

Why Home Loan Interest Rates Of NBFCs Higher Than Banks