The term “freedom” may have various meanings for different people. Freedom is for some people the capacity to travel anywhere at any time. For others, it can be financial independence. Individual house ownership, in our opinion at PNB Housing, is one of the most significant indicators of such independence. An independently owned home means freedom from the whims of landlords and steadily rising rent. A property is the most valuable financial asset and, if owned, it can add tons of financial security especially for...
The process of sanctioning a Home Loan is thorough and detailed. It essentially involves scrutiny of an applicant’s eligibility. That includes evaluating all the essential Home Loan documents required – right from KYC documents to income proof, income tax returns, credit reports and property documents. Since all these documents help the financial institutions verify an applicant’s creditworthiness, they evaluate how much of a risk it is to sanction a Home Loan...
‘CIBIL Score’ or credit score becomes extremely important when assessing home loan eligibility or taking any other form of a loan. Applicants must check their score and figure out if it is above a certain number to understand their eligibility, the likely ROI they will be charged and plan their loan accordingly. To the unaware, a CIBIL score might sound like marks obtained in an important professional examination. But that...
Buying a home in this modern world is a dream for many individuals. With tremendous hard work of finalising the best property and proper financial planning, people apply for Home Loans to make this dream a reality. The home buyer begins repaying the loan amount in equal monthly instalments (EMI) after making a down payment. Despite having a home loan, individuals could require more funds in some circumstances. In such a...
New investors are flocking to Term Deposits, also called fixed deposits, which has long been known as a safe investment choice. While opening a Term Deposit is virtually simple, there are a few things to consider. Today’s blog has everything you require to understand Term Deposit, including its types, features, etc. What is a Term Deposit? A Term Deposit, also called Fixed Deposit (FD), is a deposit provided by NBFCs...
The acquisition of a home is a milestone in every individual’s life. To purchase a home, many times an individual uses financial assistance from a lender, this particular type of loan is known as a Home loan. As a part of the Home Loan process, Financial institutions or banks carry out tasks like document verification, pre-sanction inspection, legal operations, etc. for which they charge a certain fee. This fee is...
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. How Does Repo Rate work? Repo rates are one of the most critical tools that any central bank has in its kitty through which it exercises...
Today’s article will discuss what portion of your salary is considered when determining eligibility, what factors impact your eligibility, and how simple it is to apply for a house loan. Purchasing a home throughout one’s lifetime is regarded as a crucial step toward obtaining the status of ‘being settled’, particularly in Indian culture. However, with property prices out of reach for the employed people, this goal can only be realized...
It is normal to take out a loan when one needs money. However, if you already have a house loan, a top-up home loan, which is a loan obtained on top of your current home loan, is frequently the best option. While you can take out a different loan, for example, a personal loan, the conditions may be more expensive, and the application process may take longer. In addition, compared...
With so many different home loan options available today, the dream of purchasing or constructing a home for many is no longer a distant one. Interest rates have also dropped dramatically over the years, with lenders like us at PNB Housing offering competitive home loan interest rates. However, most lenders lend up to a maximum of 90% of your property’s worth. This has been mandated by the Reserve Bank of...
When we talk about some of the biggest and most important financial commitments of life, then purchasing a home is often always at the top of the list. The majority of people avail the facility of a home loan to fulfil this life-long dream. However, getting a home loan is not a one-day process. It involves a lot of steps, right from sending a home loan application to assessment to...
In any type of home purchase, whether with your own money or through a home loan, you have to pay certain fees and taxes. For example, loan processing fees or the cost of a technical appraisal of the property by the lender. Other examples of such fees and taxes related to home purchase also include franking or stamping. Are they both the same things? No, not at all. That is just...
The fact that home loans have made life easy for millions of people in India is no understatement. It is a very affordable solution for anyone dreaming of owning a house or investing in a real estate property. Why? Because a home loan lets you pay the property cost in easy-to-manage EMIs. But do you get the entire property cost as a loan from your lender? The answer is no....
When you begin with a home loan process, you must have heard some terms on repeat. The terms such as CIBIL score for a home loan, minimum CIBIL score for a home loan, etc., keep on coming in the home loan process. So, what exactly is a good CIBIL score for a smooth and swift home loan approval? In this article, we have noted everything about the CIBIL score needed...
One of the most enticing perks of taking out a housing loan is the ability to save money on taxes. It also aids in the purchase of a fixed asset. If you obtain a home loan, you also become subject to tax benefits under the Income Tax Act Section 24 and Section 80C, 1961. Here, taking a joint home loan also brings many tax benefits to the table. The joint home...
The government has introduced many benefits to home buyers to ensure that the dream of homeownership is accessible to as many citizens as possible. One of the most significant benefits of owning a home is the tax benefits that come along with it. You can avail of tax benefits by several wise investments done over the years. Among them, tax benefits on home loans are a long-term investment that will...
In India, everyone aspires to land a decent job, earn a good salary, or start their own business and fulfil the lifelong dream of becoming a homeowner. Yet, with the rising cost of land and property, owning a home is easier said than done. If you work at a reputed firm and have a good annual salary package, then you can easily get a home loan without much hassle. But...
We all understand that paying off a home loan is a lengthy process that requires patience and planning. Every year of your tenure, you pay off a certain portion of the home loan principal amount along with the interest component. But how do you learn and track what portion of the loan amount you have paid so far, what is left, and other details? The answer is a home loan statement. ...
It can be challenging for many people to buy their dream home without adequate financial resources. A home loan is the best option in such cases because it gives people the freedom to own a home without paying for it upfront in one go. As per the agreed terms of the loan, one can pay off the entire loan amount along with the interest over a specified period. This is...
When you get a loan, you have to pay it back within a certain amount of time. As you might know, the principal amount and the interest are repaid over certain monthly installments. Here, wouldn’t it be better for customers to have some sort of chart that explains the installment schedule clearly? Of course. Which is where the loan repayment schedule comes into play. Simply put, the repayment schedule is...
If you are one of those looking to utilise the scheme to finance a housing unit for your loved ones, then you are at the right place. PNB Housing enjoys an affiliation with the government’s PMAY scheme since its introduction, thus offering you the interest subsidy as stipulated in PMAY’s Credit Linked Subsidy Scheme (CLSS). And the good news is that the PMAY Scheme is still due to arrive. As...
If we go by a popular saying, the three most important needs of every human being are food, clothes and a home. While the first two are bare essentials that one can afford rather easily, getting a roof above one’s head requires a hefty financial commitment. This is where home loans have emerged as the saving grace for tens of thousands of people. But there’s often a misconception that one...
A home loan is one of the most significant financial and emotional commitments one makes in an entire lifetime. A home loan comes with a significant financial implication as well as the home loan application journey involves a few critical documents too. To be better prepared for the loan journey, a home loan applicant needs to be well aware of the significance, content, and implications of all home loan documents....
Do you also dream of getting that perfect little house for you and your family? Are you still confused about all your available loan options? Do people have a lot of financial advice for you, but you cannot rely on them? Then come to the financial experts themselves! First things first, let us get the confusion out of the way. We are aware of the ongoing home loan vs. loan against...
Everyone knows that paying off a home loan can be one of the most taxing commitments in our lives. That is because customers tend to opt for 15-20 years to pay off the entire loan. Imagine putting aside a certain percentage of your income every month without fail for such a lengthy tenure! As such, if you fail to plan, a high home loan EMI can negatively impact your financial...
We all dream of buying the best home possible. But, with property prices sky high and soaring, turning the dream into a reality could be a step too far. Here, the good old home loan comes to the rescue. Taking a home loan can be a huge step. From the sheer amount of financial planning to the lengthy process of getting approved for one, a home loan can often sound...
Are you wondering how much you’d have saved in terms of interest and principal amount if your existing home loan was at a much lower lending rate today? Well, you’re not alone. With home loan interest rates in India circling above 7% per annum since 2020, many like you are worried if they are paying too much. Given how hefty the outgo is on a typical home loan, even a...
Buying a home is one of the most crucial and landmark decisions you make in your lifetime. Everything about your home loan, right from the research, application, documents, and the lender you choose to go with, has to be perfect. Ample research and knowledge about the entire home loan process is the best way to avoid any surprises later. Bookmark this post right away if you are still in the...
A loan against property (LAP) is a secured loan that banks, housing finance companies and NBFCs provide against residential or commercial property. These loans are usually offered at a lower interest rate as compared to a personal loan or business loan and are disbursed at a reasonable time. Anyone with a pre-owned property can avail such loans, whether they are salaried or self-employed in a business or professional setup. The...
As a form of secured loan, this is available on more benign terms since the property papers are kept as collateral by the lender. Loan against Property (LAP) is a secured form of loan borrowed from a loan provider. As the name itself reveals, it is a loan given against property, which should be physical and immovable (residential/ commercial). A loan provider or lender can be a bank, NBFC or...
We all have a desire to travel and explore the world in our own way, and we often tend to put it under the carpet. This is because we think our income or savings will fall short of meeting the expenses and can derail our financial well-being. However, this does not hold true, and you can easily fund your travel plans through smart and planned investments without affecting your regular...
You may be familiar with the process of opening a new FD account at your bank using your savings or current account. But, it follows a different process, when it comes to opening a new corporate fixed deposit account. At a bank branch, where you maintain your account, you just need to submit a filled-in application form and a cheque to get a new FD certificate. But, at an HFC...
When it comes to investing your savings, fixed deposits turn out to be a natural choice for many. For decades, it continues to be one of the preferred choices of investment and is considered a sound investment avenue. So, let us examine all the features that make it an evergreen investment option. FD Gives Guaranteed Rate of Return: Once the funds are invested in a fixed deposit, the depositor is...
Fixed Deposits are one of the most preferred investment avenues for people of all ages especially senior citizens and parents of young children. The primary reasons being that it carries minimal risk and help in fulfilling both short and long term goals. Senior citizens, especially retired persons, can enjoy interest on their deposits on monthly, quarterly, half-yearly or annual basis depending upon their requirements. FDs come with the option of...
There is more to buying your dream house than taking a home loan and repaying the principal and interest over a fixed period of time. A home loan — often one of the most important decisions in an individual’s life — can be stressful and exhausting if the applicant fails to do proper research and read the fine print before signing on the dotted line. With a range of options...
India is among the few countries that offer high returns on financial investments in the global scenario and fixed deposit is one such instrument. With the count of non-resident Indians (NRI) soaring high with each passing day, many find it lucrative to invest their corpus back in India. Investments in fixed deposits, is usually preferred, amongst other Indian financial instruments, owing to low risk returns and as a hedge against...
Fixed deposits, more commonly known as FDs, are one of the most sought after instruments for investing money for a stipulated period in lieu offering good returns. FDs offered by corporates and housing finance companies (HFC) offer a pre-determined rate of interest and even render special schemes for some segments like senior citizens. This helps organizations to raise funds and deploy them for business intents while on the other hand,...
Once the final dues of your home loan are paid, you become a proud owner of a home. It is an exciting and emotional moment and a time for celebration. But, before you head on to celebrating, certain tasks in the home loan closure process need to be taken care off. Without these tasks the home loan closing process will be incomplete, which will lead to complications in the future....
Fixed Deposits (FDs) are the safest and most preferred investment option available to those averse to investing in risk instruments such as equity and mutual funds. FDs allow you to manage your financial risks and help fulfil your goals aspired for different stages of your life. These could involve securing your child’s future, his or her education and marriage, or as a hedge against unexpected expenses. Such deposits are also...
Necessity of additional funds over and above one’s income and savings is a common phenomenon, especially with rising requirements in current scenario. Although there are various ways of sourcing these funds, one much sought after way is personal loan. The quick sanctions and even faster disbursals makes it a lucrative way of availing funds. But, this is not the only loan of this kind. Loan Against Property (LAP) is a...
There’s no shortage of home loan providers these days. Banks, housing finance companies and NBFCs are constantly trying to pitch their home loans services, often confusing customers for choice. Given the many options available, it can be tempting to choose between home loan providers based on a single metric — the interest rate that’s being charged. Choosing based on the interest rate has its advantages: it’s comparable across providers, which...
It is one thing to dream of owning a home and quite another to actually buy one, since there are liabilities attached to it, especially if you are taking a home loan. It means committing a part of your monthly salary to repay the loan over several years. Once you decide that you can afford a loan, you have to look at other aspects, such as the loan amount you...
Pradhan Mantri Awas Yojana – The interest subsidy scheme CLSS (Credit Linked Subsidy Scheme) introduced by MHUPA (Ministry of Housing & Urban Poverty Alleviation) was announced by our honourable Prime Minister Sh. Narendra Modi with a vision of housing for all in 2022. Under PMAY scheme, Customer (i.e. the beneficiary) is eligible to avail interest subsidy on the purchase/construction/enhancement of a house. PNB Housing Finance offers “Credit Linked Subsidy scheme...
Buying a home which you can proudly call as your own is a life-time experience. It requires a lot of planning by the family members about the exact necessities and research about prospective home and its developer etc. Once these are done, you finally require finance to buy your dream home. While planning about the necessities and identifying a right home may take some time, you should do another homework...
Home is where the heart is, goes an old English idiom. Indeed, for many of us, our homes will always be the place for which we feel the deepest affection, no matter where we are. A home is also one of the most important assets that we invest in our lifetime. Given the high real estate rates in most urban centres across the country, buying a home is quite capital...
We often wait for a perfect time and situation to buy or invest in something that is of significance to us. Careful planning is a must but sometimes, we wait for far too long for that right moment and in the process miss the opportunity. Buying or investing in a home for yourself demands diligent and careful planning too, in terms of your current and expected future financial situation, your...
One spends a lot of money when living in rental accommodation for years. The rising real estate prices in the country might make the home loan purchase difficult if one defers the plan of purchasing. Hence, it is better to avail a home loan and buy a house when one is quite young. There are plenty of reasons that differentiate a home loan offer for an early buyer vis-à-vis a...
With scores of Indians leaving the country every year to work or settle abroad, the term ‘NRI’ (Non Resident Indian) has become an integral part of popular parlance. Every India wherever they are settled wishes to be connected to its roots. A home back in India is one asset that emanates a sense of belongingness. And buying a home mostly entails applying for a home loan as well. Eligibility norms...
Owning a home isn’t just a keystone of wealth, it’s what gives us and our families, stability and emotional security. If you’re hesitant about buying a home because you feel that getting a home loan is a daunting task. Don’t worry! Applying for a home loan, is an incredibly simple process. If you take care of a few important details at the very beginning, securing a home loan is easy....
A home purchase is probably the biggest financial decision and transaction in a person’s financial life. It is a decision that has an impact for many years to come. It is also a transaction that requires planning around your income outflow for many years to come. A home loan is a prolonged financial commitment that typically stretches for 20 to 30 years during which time, interest rates can change, depending...
Buying a dream home isn’t something you do every day. The same goes for your home loan. It’s a big financial decision, and will affect your wallet for a long time after the purchase is over. Which brings us to the matter of choosing the lending institution. How do you go about it? It is important to give it careful consideration. After all, there’s much more to a home loan...
A home loan helps you realize your dream of having your own home. A home loan comes with its own financial commitment, in the form of EMI (Equated Monthly Installments) that has to be serviced by you diligently over the tenure of the loan. It is important that you strike a fine balance between your monthly EMI commitments and Loan Tenure. Now first, What is an EMI? EMI is a...
Should you rent a house or should you buy one? Is it better to pay EMI than pay rent? Well, the answer cannot be simply a ‘yes’ or a ‘no’; the argument continues and there is merit in both the views. The choice would depend on a variety of factors unique to every person’s life. Here is a deeper look into both the options, with the objective of choosing the...
When you act responsibly with your finances and make your payments on time, your credibility, which is what the CIBIL Score is all about, will improve and so will your credit worthiness. Anyone who has purchased a home on a loan will advise you to check your CIBIL Score aka Credit Score even before you consider applying. This all-important CIBIL Score is simply a rating assigned to a loan applicant’s...
Your portfolio should contain a diversified set of investments for optimal performance. While you would have invested in shares, mutual funds, bonds and bank fixed deposits, company deposits is an investment option that you may have overlooked. Here is why you should consider company deposits as well: Diversification: Fixed and safe returns in an investment portfolio play a key role in limiting portfolio risk. When you have predictable returns, you...
Company Fixed Deposits (FDs) may offer a higher rate of return than normal bank deposits. As a part of diversification of your portfolio, it is advisable to invest in company FDs. But you have to be look for a few important things before you invest Here are 5 things that you must look for before you pick a company FD: Credit Rating: A rating is assigned by a rating agency,...
