Blog

A home loan is the type of loan where a person is given a lump sum amount to his bank account or the home construction company's account, which is providing the house. In the counterpart, the person will have to go through the loan procedure until the final instalment of the; loan repayment is made, and the ownership will be transferred to that of the customer's name.

There is the availability of the tax benefit as the person who will be availing the home loan will also be getting the tax benefits, and on the other side of the coin, the loan procedure and certain limits the person will have to maintain.

• There is a tax benefit on the first house, and per the income tax section 80C, a person will be eligible to get the deduction of Rs 1.5 lakh rupees on the total loan amount, but the condition is that the construction of the house needs to be completed. One cannot claim on the incomplete house. Another tax benefit can be claimed by the customer upstairs two lakhs on the total interest. Here also the condition will be the same.
  
  
• They will need to complete the construction of the house. Else there will not be any chance of getting the same. If there is the involvement of the second house in the context of this matter, then there will be another deduction on the total interest amount under section 24(b) of the income tax act 1961. These are done to encourage the people and indirectly grow the business of the financial institutions and implement the reformed policies as well.
  
  
• There will be no repayment charges compared to that of the personal loan or the car loan. The most significant advantage of this type of loan is that if a person is having surplus money and wants to make the payments before the expiry of the loan tenure, he will do so, unlike the other loans. Oriental Bank of Commerce Home Loan provide such benefits for the customers. There will not be ebay kinds of charges available or is against the same.
  
  
• There is the facility of the balance transfer. In this type of loan, the customer wants to shift the loan to another lender who provides a better interest rate. On the other hand, the availability of the balance transfer calculator is there on the official websites of the respective banks and the NBFCs. The EMI Calculators for Home Loan which are available in the official websites will give a good estimation. Through this, there will be less burden on the staff, and there will be the possibility of getting faster information for the prospect customers.
  
  
• In the urban cities, there are massive figures of payments if any house is taken on the rent basis of which will be a total loss as till the time being there will be full rent payment till the timer of the 15-20 years that will be equal to that of the EMI of 70-80% of the home loan if is availed. This is the advantage that one will be saved from the burden of making the monthly payment for a house rented which is pathetic.

There will be more tenure that will give the leverage to enhance the income capacities and the income possibilities, which will help them manage the next coming instalments and pay accordingly. More the time more will be the co confidence in the people to pay the loan properly.

Conclusion -

To conclude, there will be other advantages like that of capital appreciation. As day by day, the home's valuation will increase, then the resale amount will also be increased so that if there is an opportunity to sell the house in the future, one can get a good amount.

Also read this: Home Loan Insurance 

How To Apply For A Home Loan?

The whole process of applying for a home loan is not so complex. Following are the steps which will tell you about the procedure of applying for a home loan:- 

1) Application:- The very first step for applying for a home loan is filling the application form. The form would contain a few details like your name, phone number, pin code, type of employment, etc. After filling the form, the representative will get in touch with you to move forward with the process of application. ICICI Home Loan offers attractive interest rates to its customers.

2) Collection of Documents:- Some of the documents that you need to apply for a home loan are:- 

a) Identity Proof- Aadhaar Card, PAN, Voter ID, Passport, Driving License, etc.

b) Residence Proof- Utility bills, ration card, PAN, Aadhar Card or renter’s agreement can be submitted. 

c) Bank account statements.

d) Latest salary slips.

3) Document Processing and Verification:- After taking your documents, the moneylender will process and authenticate all your documents carefully. They may even contact the relevant organisation or your office to confirm your occupation or employment. In this step of document processing and verification, they will also conduct a credit enquiry to check your credit report and your CIBIL score. Only if your credit report, documents and CIBIL score all are satisfactory, then the application for your loan will move further. You also need to fill the Home Loan Processing Fee.

4) Sanction Letter:- After the successful completion of all the steps mentioned above, the customer will receive a sanction letter. The following details are involved in the sanction letter:- 

a)  Amount of loan.

b) Rate of interest.

c) Type of interest rate, whether fixed or variable.

d) Tenure of repayment.

Apart from this, a sanction letter also contains other terms and conditions and policies of the home loan. The customer has to sign a copy of the sanction letter and revert to the lender. After all this, the offer of a loan will be accepted.

5) Secure fee payment:- This payment is a one-time secure fee, which you have to pay after you have signed the sanction letter. The moneylender can also ask you to pay this fee before signing the sanction letter.

6) The loan agreement and disbursal:- After the completion of all these steps, the final agreement of the loan will be given to you, after the checking and verification by the lender. Finally, the bank or the financial institution will disburse the amount of loan in your account, according to the terms and conditions.

Advantages Of A Home Loan

1) A home loan has a lower interest rate as compared to the other loans. 

2) A home loan is a really easy and simple way to get a large amount of money in a short period of time.

3) A home loan is a secured loan. It means that it is secured by your house value.

4) The home loan may be tax-deductible. It means that it is removed from the taxable income. It, therefore, lowers the expense liability of the tax.

5) The money is given to you in cash when you apply for a home loan.

6) A home loan is beneficial for the lenders too. This is because the lenders have a tangible asset that they can repossess. If the borrower who has borrowed the money for a home loan, fails to pay the debt, the moneylender can automatically take the whole possession of the house.

Disadvantages Of A Home Loan

1) You provide your home as collateral in a home loan. It is risky as you can lose your home to the lender, if you, unfortunately, fail to repay the debt.

2) In a home loan, there is a very high chance of facing bankruptcy. This is because the value of the home loan is worth more than the net worth of the house.

3) No doubt, a home loan is an easier way to get a large amount of money in a short span of time, but the borrower may sink deeper into debt if he takes up a second loan to pay the first one.

Also read this: How is a Land Loan different from a Home Loan? 

A credit card is a payment card issued by banks and financial institutions. It allows an individual to borrow funds from the bank, which can be used for the purpose of payments and purchases, both online and offline transactions. The bank creates a revolving account and issues a line of credit to the cardholder.

Credit cards can be used for multiple purposes such as payment of bills, shopping expenses, flight tickets, hotel or restaurant reservations, etc. It is usually used for small to medium expenses but can also be used for large expenses based on the card limit. The cardholder has to repay the credit money with a rate of interest charged on it, usually on a monthly basis. Failure in repayment can lead to additional fees and a higher rate of interest on the accrued debt. There are different kinds of credit cards such as standard credit cards, shopping credit, secured credit cards, rewards credit cards, etc. An individual should choose a card that meets their needs.

A credit card has several benefits such as it provides the convenience of not having to carry cash everywhere they go, this also results in safety. Credit cards can also be used to improve your credit score by making timely and regular repayments of the owed amount. This helps in increasing the credit limit and also helps in availing loans in the future as it shows positive repayment abilities. Using a credit card also provides the benefit of additional liquidity which can be very handy in emergencies.

Credit cards can also be used as a budgeting tool because the credit card company provides a detailed statement of the transactions made using the credit card every month, this helps in tracking the expenses and managing your finances. Payment through credit cards also gives the cardholders rewards such as cashback, vouchers, gifts, and discounts on flight tickets, shopping bills, etc. Even the repayment structure of credit card amounts is flexible.

The rate of interest charged on credit cards varies in every bank and financial institution, for example, HDFC Bank Credit Card charges a rate of interest of 3.4% per month. The rate of interest on a credit card is not determined by factors such as repayment capacity but it can be adjusted based on the usage of the card and the relationship of the cardholder with the bank. However, a credit card has an interest-free period that ranges from 20-50 days, it depends on the day the transaction has taken place.
The interest-free period does not apply to cash withdrawals and transactions that have been forwarded to the next billing cycle. The rate of interest on credit cards is only charged when the repayment has not been made on time and in cases of cash withdrawals. If the cardholder makes the repayment on time, they do not have to worry about interest being charged.

Ways to a low-interest rate credit card

Improving credit score- There is a direct connection between your credit score and the credit that is being paid by you. To qualify for better interest rates, one should work to improve their credit score in the longer run. A credit score can be proof of your creditworthiness. This can be done by making timely repayments, maintaining a good debt to income ratio, assessing your credit score from time to time, etc.

Do your research- Before choosing any credit card, it is advisable to do detailed research about the terms and conditions associated with the credit card. A low-interest rate credit may not have rewards and discount benefits but it can help you to save money. Therefore all options should be compared and then a decision should be made.

Maintaining a good relationship- Maintaining a good relationship with the bank can help an individual to get a low-interest credit card. By simply speaking to a bank executive can help an individual to meet their financial requirements.

Zero percent APR- Another way to get a low-interest credit card is to apply for an introductory 0% APR offer, in which no interest is charged on any payment for a said period. It is important to understand the policies completely before choosing any offer.

Also read this: A Credit Card For Low Income People 

It is very important to repay your loan amount on time. Banks give the facility of flexible repayment structure and tenure to the customers. 

Customers have the flexibility to choose repayment structure according to their income and budget. It is very important to plan out your budget and income before making any decision. You can use tools like a home loan EMI calculator that helps you to calculate your monthly EMI along with the interest rate. This will help you to plan out your budget before applying for the loan.

But there is a way where you can decrease your EMI amount completely, and that is by making a down payment. 

What is a down payment?
Down payment is the amount that you pay at the initial stage of the home loan. Banks usually ask for 20% to 30% of the loan amount as a down payment. By making a down payment you can increase the trust between you and your lender. Along with this, it will also provide you with many benefits like lowering the total principal amount. 

Example:- If your home loan is INR 50,00,000 (50 lakhs) and the down payment is 30% (15,00,000) then the remaining amount that you'll have to pay as EMI will be 35,00,000. So the EMI that you would've paid every month at INR 50,00,000 with an interest rate of 8% at a loan tenure of 10 years is INR 58,491 and the interest rate over loan tenure is INR 2,403,854. Whereas the EMI that you'll pay after the down payment is INR 42,650 and the interest rate that will be payable over the loan tenure is INR 1,617,979. 

So from the above calculations, you will save INR 7,85,875 on the interest rate. So you can just imagine the amount that can be saved on EMI after making the down payment. 

It's important to make a down payment for a home loan. It will help you in many ways. Although there are banks like Dena bank home loan or BAJAJ finserv that provide you with home loans at 0% down payment.

Benefits of down payment:- 

1. Interest Rate:- As your loan amount will be decreased after the down payment so the interest rate which will be calculated on the remaining amount will decrease alternatively. So you can say that a down payment helps you to lower your interest amount even more.
   
   
2. Credit score:- If your credit score is low then you should make a high down payment to show your lenders that you are a creditworthy customer. Making a huge down payment will also help you to decrease your interest rate and will also reduce the loan amount alternatively. So it makes it easier to repay your loan amount, which will increase your credit score.
   
   
3. Borrowing power:- A huge down payment can make it easier for you to take another loan at the same time. It will also be easier for you to take an additional loan in the near future. Lenders like it when the borrowers have enough income to meet the monthly expenses and the loan amount. So income can mean a low debt-to-income ratio, which can help you look good in front of your lenders.
   
   
4. Loan amount:- If you pay a huge down payment then your loan amount will alternatively decrease. Which will make it easier for you to repay in smaller instalment. And your EMI amount will also be decreased so you'll have to pay less. For example:- If your home loan is INR 10,00,000 and you make a down payment of 30% (i.e. 3,00,000) so the remaining loan amount that you'll have to pay is INR 7,00,000 which is comparatively less than INR 10,00,000.
   
   

Conclusion:- Making a huge down payment can reduce the burden of repayment of the loan amount. Although a lot of banks give a percentage of down payment that you have to make, borrowers have the flexibility to make more down payment if they want to reduce the loan amount even more.

Must Read-  Costs Associated With A Home Loan

Credit cards have become a necessity for everyone in today’s time. It can be easily applied from any financial institution. While availing a credit card one should be properly aware of the offers offered on credit card by various institutions as it may vary depending on the financial institution you choose. Your credit card information is secured safely with the card issuer. One should never share the card information with anyone as it can be misused. Any bank can easily provide you with a credit card in favorable conditions if you have a good credit score.

Credit card In SBI can be applied online easily without much hassle. SBI provides different types of credit cards depending on different needs of the user. SBI bank offers various offers on credit cards. One can also choose the EMI facility on the SBI credit card. SBI also provides credit card protection plans. For applying for credit card SBI bank is highly recommended as it provides various offers and rewards on credit. One can easily apply online for availing a credit card at SBI bank.

There are various benefits for availing credit cards in the time of pandemic. Banks and non-banking financing companies(NBFCs) are offering a great deal on credit cards in this pandemic time. One can avail various offers on credit cards in this pandemic time. Few benefits of getting a credit card in this pandemic are listed below-

1. Interest rate fell due to the covid-19 pandemic. The average interest rate on credit cards has gone down below the pre-pandemic level. The borrowing cost is expected to be low through the coming years.

2. Many technological firms have also entered the credit card market with the products tailored to specific demographics like people using cryptocurrencies or people with low credit card scores.

3. The lending standards increased- In pandemics the times are tough due to that reason the lending standard of credit cards is made even more tough for the borrowers. People with poor credit scores may find it tough to qualify for a new card in 2021. But if your credit score is good then there is no need to worry you can qualify for availing credit cards easily.

Through travel cards one can easily earn various rewards while at home this year and can be benefited in various ways.

Due to this pandemic credit card rewards programs are more evolved. The rewards may include travel perks, airline miles, dining out points, and ride-share rewards. This can benefit a user a lot.

Credit card payment assistance kicked in due to this pandemic. Now borrowers can easily get payment assistance for availing the credit card. Consumers can now comfortably opt for payment assistance.

Conclusion 

There have been various changes in trends of credit cards. The credit card financing companies have made some policies during the pandemic time which can be useful for the users. One can easily get a credit card from any banks and non-banking financing companies(NBFCs) if they have a good credit score as well as good credit history. Credit cards when used responsibly can be of great help as it is accepted worldwide. It is one of the most convenient cards for purchasing. One can save a lot of money through various credit card benefits. Credit card transactions can benefit its users in the form of reward points, discounts, vouchers, cash backs, etc. Various banks and financing companies are offering great deals in the time of pandemic on a credit card. One can easily apply for a credit card through online websites or the apps of the bank simply by filling all the required information and documents.

Also read this: Requirements to get a credit card 

A credit card is a type of payment card where the payment at a point of sale is made from a line of credit instead of the card holder’s bank account. A credit card is issued by a financial institution, usually a bank. The cardholder must then pay back this amount at the end of every billing cycle, which is usually at the end of a month. If the cardholder fails to repay the amount on time, late fees and additional interest fees will be charged on the amount owed. The credit card holder’s credit history and income determine the card’s ‘credit limit’. Vijaya bank credit card provides individuals with great deals on credit cards according to their needs.

Credit card is a great way of managing money, they have several benefits and can be helpful in the time of financial emergencies-

• Additional Liquidity- A credit card allows the users to have additional liquidity, which can be extremely beneficial in times of an emergency. It allows the users to use a line of credit, so they can make payments even when they are not carrying cash with themselves. It can be beneficial in emergencies such as while paying for hospital bills or when the user faces an obstacle while traveling.
• Convenience- While using a credit card, the cardholder does not have to worry about carrying cash or their checkbook everywhere, instead, they can use a credit card. Credit cards are universally accepted, hence making it convenient for the user in time of emergencies.
• Helps in improving credit score- When a user makes use of credit cards to make a payment and then pays their dues timely, it helps in improving their credit score. This can be beneficial at the time of availing a loan in a financial emergency and it also helps them get a higher credit limit because the limit is determined by the user’s credit score and income. It shows positive repayment capacity.
• Interest-free periods- Credit cards have interest-free periods ranging between 20-60 days, no interest is charged on the credit amount in this period. It is beneficial for users who use credit cards in emergencies and they can pay back the amount within this grace back. It helps them save money on interest and other charges when they might be facing a financial emergency. A credit card can be used to purchase essential as well as non-essential products and services.
• Rewards and discounts- When a user makes a payment through a credit card, it avails them of several rewards and discounts. The user can get discounts on paying bills, flight tickets, etc. They can also get rewards such as vouchers and gifts. Credit card programs also give cash back rewards on prompt repayment of the amount owed.
• Insurance- Most credit cards come with insurances that many users may not be aware of. The user can insure things such as travel insurance, product insurance, and rental car insurance when they make payments through a credit card. This can be useful in emergencies.
• Safety- Carrying a credit card is safer than carrying large amounts of cash everywhere. Large amounts of payments can be made through credit cards also. They are also safer than debit cards because in case of fraud, in a debit card the amount is withdrawn from the user’s bank account and it may take time for the bank to reverse these transactions. While on a credit card, the user can just notify the bank and not pay the transaction amount, hence their money is not lost.
• Expenses records- A credit card maintains a record of each payment made by the user through the card, and the details are shown in the credit card statement. This can be used by the user to keep track of their payments and purchases, which can be useful for monthly budgeting and tax purposes.
• Repayment flexibility- The user has the option to repay their credit card bills through equated monthly installments (EMI) which allows them to know the required amount that needs to be paid every month. Banks also offer the option to the users of paying the minimum dues which would allow them to continue their line of credit.

Credit cards are very helpful in emergencies as it has several benefits but the user also needs to be responsible in making the repayments on time otherwise additional charges and high rate of interest is charged on the amount due.

Also read this: Credit Card For More Convenience 

We live in a time where Most credit cardholders consider paying bills digitally, either through mobile/internet banking, IMPS, NEFT, RTGS, by UPI, even by debit card and platforms like CRED. Today, most banks have stepped up the digital ramp to provide online services to their customers, be it applying for credit cards online, or to make monthly payments after you get one.

 Can we make credit card payments via IMPS?
IMPS (Immediate Payment Service) is a legal payment system that allows instant interbank funds in India. What makes IMPS even better is that, unlike traditional transferring options, it permits committing transactions at any time. Be it a bank holiday. The NPCI has regulated valid for every legal transaction, which makes it the most common payment gateway for credit card bill payment. The reason why it is a widely used payment option is that it doesn’t charge transaction fees and assures strong security.

Is NEFT an option for bills payment?
NEFT (National Electronic Funds Transfer) is definitely one of the most frequent payment options through which people consider paying their bills. As the name suggests, NEFT has a net that covers the entire country, so automatically, it promotes inter-banking transactions as well. The NEFT payment gateway is centered by the RBI (Reserve Bank of India) and is entrusted with nearly all sorts of legal transactions and payments.

Can the payments be made by mobile wallets?
The service of credit card bill payment is something offered by mobile wallets and payment systems. These platforms have this facility integrated within their design. Hence a customer is not expected to separately register or create a new account somewhere if they have one of such wallets/payment systems (like PhonePe, CRED, Paytm, Mobikwik).It is also one of the easiest payment options, as it directly links your wallet to your bank account, hence credits/debits the balances accordingly.

Can the payment be made by drawing a cheque or a demand draft?
Yes, it is absolutely possible to make credit card bills payment via cheque or DD. Paying the amount through cheque makes it easy for the customer to transact offline. The cheque/DD must be dropped in the bank branch of the concerned account and must be written in favor of the credit card account.

Here are a few dos to perform before drawing a cheque for your HSBC Bank Credit Card bill payment-

• It is significant for the cheque to be in favour of the credit card account.
• The cheque should mandatorily contain the credit card number.
• Keep the due date of the credit card bill payment in your mind while filling the cheque, as it may take more than three days and sometimes even 12 days (in case of outstation cheques) to be processed.

Can the credit card payment be made by depositing cash in the bank branch?
Yes, it is a fair matter to make the credit card payment physically by cash. To make the payment, you have to visit the bank which issued the credit card to you. On reaching the bank, the deposit slip must be precisely filled with relevant details. Make sure to recheck the bill amount before submitting, as it may lead to cheating or payment discrepancy. Paying physically via cash may take less than 24 hours, so it should only be considered as an option if the credit card payment timeline is 24 hours away.

What happens if one does not pay credit card bills?
In India, not paying credit card bills can lead to severe repercussions. On skipping one or two payments, banks usually charge late fees, penalty APR resulting in damaging your credit score. If it is the third time one has not paid the bill, the credit card account can be closed, with even more credit score decline and late fees. The fourth time may substantially damage the credit score, and a lawsuit can be filed.

Also read this: Pros and cons of Car Loan 

The home loan interest rate is a significant factor that always helps while availing the home loan. As we already know, taking out a home loan is an important and major financial decision. And choosing a low-interest rate is also a big decision. You have two choices whether you can choose a fixed interest rate or a floating interest rate. It depends on the person which method they want to select while availing the home loan because some people like fixed interest rate and some people like floating interest rate methods.

Those people who option fixed rate means that they also have to repay the whole loan as fixed interest amount, which means equal EMI as per the home loan tenure period; the rate would not change in this method. Some of the advantages of fixed interest rate are that this would not change if the whole of the market rate increases, then this would not impact your tenure and accordingly your fixed interest rate. Another hand, if you choose a floating interest rate, then it depends on market value. If the market price increases, then this would also impact your pocket and budget. It depends on you which method you want to choose.

Some people ask if it is possible to change the interest rate, then yes, this is also possible to shift your interest rate like floating to a fixed interest rate. But before you move your interest rate, the lender also charges some charges while changing your interest rate method. And there are some of the challenges also involved whenever you are looking to purchase any property or house. The first challenge you will face is selecting the right lender because sometimes some lenders charge high-interest rates when they provide you a home loan. That's why this is a challenge when you avail the loan.

And other critical factors that also determine the ability and ease to repay your home loan. Very high-interest rates can also stop you from taking a home loan or make you opt for a very long tenure period. Those people who have shallow credit scores or bad credit history may also find it challenging to get a home loan. A very good or high credit score always tells your lender that you can quickly repay the whole of the loan amounts before time. You can also check the credit score by online mode. Before choosing a home loan first, you need to check your score because some lenders reject your loan application. 

Sometimes some banks charge hidden charges because they get a high rate while they repay the loan amounts. So every borrower needs to research the rate in the market. If a bank charges a lower rate, they should choose to avail the loan. And there are some basic terms and conditions the borrower needs to follow while availing of the loan. As the home loan is a very long-term obligation, only a home loan provides you a long tenure period. If you compare other loans, you can not get more tenure periods while availing of the loan. It depends on you how long the tenure period you want to help yourself.

Conclusion :

If you want to get a home loan, then you need to check all the basic things. Because if you have proper knowledge about the loan, then the lender will not charge high interest rates or hidden charges. This knowledge always helps you while you avail yourself of the loan. If you are looking for the best bank that provides you a home loan with a cheap interest rate, then the Home Loans in SBI Bank is the best and quick choice for you. If you choose this bank, then the whole procedure takes very little time.

The rules apply to both lending companies and investors who borrow money to invest. These guidelines are also created by the RBI and are updated on a regular basis based on economic factors.

General guidelines for the borrowers and the lenders: According to RBI guidelines, borrowers who meet the eligibility requirements, have established their repayment capacity, and have a CIBIL or credit score of 750 or higher may apply for a home loan. Borrowers must also provide all necessary documents, including personal and income tax returns, as well as sign a loan repayment agreement.

General guidelines on LTV: The maximum amount a borrower can borrow has been increased by the RBI. Under the new rule, borrowers will be allowed to borrow up to 90% of the property's real value. The overall LTV ratio is 80 percent for loans of more than 30 lakhs but less than 75 lakhs. If an individual wants to take out a home loan to buy a home worth 75 lakhs or more, the maximum LTV is 75 percent. So these are the basic things you need to look after.

Guidelines on prepayment charges: Home loans are long-term assets that can last up to 30 years, and the borrower is solely responsible for paying the interest on the principal amount using any means available. The interest rate can vary from one lender to the next, but if the loan is paid off early, the financial burden may be reduced. In accordance with the most recent home loan laws and regulations, the RBI waived prepayment fees. When interest rates are floating, lenders are barred from enforcing penalties for early repayment of home loans. Prepayment penalties ranging from 2% to 5% have previously been accepted by lenders.

Guidelines on home loan balance transfer: A home loan balance conversion allows a borrower to move from a high-interest loan to a lower-interest loan. As a result, a borrower will default on an existing loan and replace it with a new one that includes the unpaid principal. Borrowers will turn to a new loan without incurring penalties because prepayment fees have been waived. However, this is only true for home loan with variable interest rates. When it comes to fixed home loan interest rates, lenders can charge a prepayment penalty that ranges from 1% to 3%. Individuals thinking about taking out a home loan should consider purchasing home insurance to protect their family's financial future if they pass away before the loan is paid off.

Although the RBI does not need this information, it is advised to ensure that the borrower's dependents are not evicted if the loan is not repaid. If you take out a home loan from a lender like Deutsche Bank Home Loan, for example, you'll want to cover your family in the event that you can't repay the loan, so home loan insurance is a good idea. To meet a short-term financial need, you take out a loan. In fact, no one spends a lot of money these days because everything takes time and money to repair, and a home loan will help you reach your goals while putting less strain on your wallet.

If you have a high CIBIL score, you might be in a unique position to negotiate loan terms, including the interest rate, because lenders are more likely to accept loan requests from borrowers with high CIBIL scores. As a result, if you want to avoid rejections, keeping track of your credit scores on a monthly basis is important. A home loan is one of the most important loan terms because no one has a large amount of money to put into realizing a dream of owning a home, and it is unrealistic for a middle-class man to build his dream mansion on his own. Keeping track of your CIBIL scores, on the other hand, is a good idea so you know where you stand if you ever need a loan.

Also read this: Floating And Fixed Rate For Home Loan 

A home loan is the loan type where a person is given a lump sum amount to fund the total amount of the house purchased at credit. In contrast, on the other side of the coin, in another way, the amount will be directly transferred to the account of the construction company which is lending the home. There are different banks and NBFCs which offer the home loan on the online basis. One will not have to travel and reach the office, but there will be the online mode where the application can be made for the home loan on the other side of the coin. 

First of all, one will have to fill the application form on the lender's official website, and the other side in the online mode have to go through these steps as well. There will be different information blanks in the application form, which one will need to follow and fill in accordingly. The details like the name, place, date of birth, earning capacity, family information, employment status will be. The bank will require all this information to examine and come out with the decision of providing the loan or not. home loan EMI calculator will give a better option.All the things will be done in online mode with the help of the internet.

In the next step, there will be the verification of the documents submitted to the bank by sending through the online mode, which has the option of sending without the manual use of the post. First of all, the things will be converted first to the PDF, JPG or the other supported asked format after scanning the documents correctly, which are readily available as an app of the google play store in the android mobile or the app store of the iPhone. 

The documents submitted will be verified by the verification department of the bank or any third party hired for this work. During this stage, one will have to be careful as the wrong or fake document can make one get into legal troubles because of the charges of fraudulent activities to avail the loan. One should have proper attention that the documents submitted are original as most cybercrimes happen in the online market only.

There will be the need for the background check, which the inspection officer will do by visiting the location and for the covid period, there are few norms that can go through some of the online submission and the inspection of the loan interview on the online face to face basis which will clear out many things. Vijaya Bank home loan follows such steps to inspect the customers. There will be a background check in the online way that authenticates the last organisation by voice calling the HR or the employer to know the facts and avail the risk of infection.

There will be the processing fees payment procedure which can also be done online by transferring the fund balance. One will have to be very much strict regarding it. There are millions of online theft happening on an hourly basis. There is the possibility of landing into the fake identical same looking page of the official websites where one will fill the information and the will pay the amount online can lead to the theft of hard-earned money by using the techniques of hacking, which can be a matter of concern for the security of the people or the whole as a country...

Conclusion -

To conclude, we can say that the loan approval process and the loan dispersal will also be done as power the guideline or the feedback through the of the message or the email or a live call from any of the application can be done to execute the last two steps.

Also read this: Why People Want To Apply for Home loan 

Gold has become important assets in Indian households. Many people in times of crisis take gold loans from various banks and non-banking financing companies(NBFCs). Gold loan is a very popular category and one of the oldest forms of loan. Gold Rate may vary from time to time. While availing gold loan one should always keep a close check on the market value of the gold. The best time to take a gold loan is when the market rate of the gold is higher as it will increase the loan amount. Gold Rate impacts the loan amount so it should be monitored carefully before taking out the gold loan. 

IIFL Gold Loan gold loan can be availed easily from the nearest branch or the online website of the bank. IIFL gold loans can be availed and approved easily with the required proper documentation. The loan amount for a gold loan may start from as low as Rs.3,000. The IIFL gold loan offers tenure up to 24 months. The interest rate on the gold loan starts from 12%. It also offers a very flexible repayment option as per the convenience of the borrower. 

Gold loans can be really beneficial for business purposes. Gold requires just minimal documentation and it can be the best option in times of financing crunches. Gold loan for businesses can be a really good option and is a really smart idea. Gold loans can be beneficial in businesses in more than one way. The reasons are listed below:- 

• Fast approval and disbursal - Gold loan can be processed and funded very easily in a short amount of time and it is very much advantageous to take a gold loan in times of financial difficulties and also while starting a business. The gold loan can be taken up to 20 lakhs or more depending on the bank which is very beneficial for businesses. It can be approved and disbursed within 30 minutes of the application.
  
  
• Facilities to check loan eligibility - one can check the loan eligibility online without wasting much of the time. The loan can be provided on the basis of the amount of gold ornaments given and its purity which must be at least 18 carats. You can also evaluate your loan amount with a gold loan calculator.
  
  
• Several repayment options - One can choose the repayment option as per the convenience as lenders provide different options for repayment.
  
  
• High loan to value - loan to value against gold is quite high and very good for the borrower. For businesses it is ideal as the loan to value is quite good. Depending upon the purity of the gold and weight of the gold you can be offered a good amount of loan which. And be very much beneficial for the business.
  
  
• Minimal documentation - The best thing about getting a gold loan is that it requires very minimal documents like identity proof, residence proof, age proof, salary slip, income tax proof, employment proof, credit score and more as asked by the bank. 

_{Conclusion :-}

Gold loan in today's time is one the most convenient option. Everyone prefers to get gold loans in times of difficulties. In India, gold loan is not only popular in urban areas but also in rural areas. People from rural as well as urban areas consider taking a gold loan in times of difficulty. The gold loan can be used for a variety of purposes as per the convenience of the borrower without any restrictions. One can get a gold loan from any banks or non-banking financing companies(NBFCs). Getting a gold loan is not a big deal as it can be availed easily.

Also read this: Why Has Gold Loan’s Demand Increased Over Time? 

There is no specific timing or day to avail of a gold loan. Gold loans are available 24/7 any time 365 days around the year. This is a type of lending in which the lender gives a loan to the borrower at an interest rate. The borrower gets a lump sum amount and has to pay in EMI’s (Equated Monthly Income). The EMI is calculated by the bank taking into consideration the tenure of the loan, the Interest rate for the loan and the amount borrowed. Sometimes an individual might come in sudden need of money may it be for some emergencies or opportunities. This loan is one of the most preferred types of loan chosen by Indian households. Any time when there is a need for sudden lumpsum money by anyone they can choose a gold loan to fulfil their needs. This type of loan is one of the fastest processed loans by any bank.

The application procedure is simple and fast. One should have some basic documents in possession like Identity proofs and income statements. As the loan is secured by gold the bank might verify the ownership of the gold for security purposes. The purity and weight of the gold are taken into consideration by the bank to quote the borrower with a loan offer. Gold Rate Today is near its all-time high price. This is also a boost to people to choose a gold loan. This way, they use the gold they have for loan and also still be the rightful owner of the gold. People have been choosing gold loans in time of misery and also in good times. Its simple repayment features help the borrower with paying back the bank.

A person can opt for a gold loan when they have gold to be used as collateral, have a source of constant income and agrees to the bank’s agreement. If an individuals credit score is less still they can apply for a gold loan as it doesn’t emphasize on credit score a lot. The loan is secured by gold so an average credit score would also do good.

The best feature of this type of loan is that almost 90% of the application process can be done online. Especially during these pandemic times, one is avoiding all reasons to step out of their homes. This online application process not only helps those but also people who are unable to visit their nearest bank branch. For the collection of gold as the collateral bank also offers door to door assistance which enables a borrower to go ahead with this loan. SBI Gold Loan is available for everyone who brings the gold to the lender's desk. They offer gold loan amounting minimum of 20 thousand up to 50 lakh rupees.

Many other competitors in this segment charge high interest rates and processing charges but this bank has been able to provide the borrowers with the most user-friendly schemes. They charge processing fees starting at just 0.50% + GST (Goods and Services Tax) of the loan amount with interest rates starting at just 7.50% per cent. This interest rate is unmatchable in this segment. Any individual above the age of eighteen can avail gold loan facility at their nearest branch. Thus if an individual agrees to these policies of the bank and to pay monthly EMI’s on time they can avail these low-interest gold loans and fulfil their wants and needs.

Conclusion

There is no specified right time to apply for a gold loan but yes this might be the perfect time to go ahead with one as the gold prices are skyrocketing. They can be offered a handsome loan amount for the gold that they provide. Some basic identity proofs and documents are all that is required.

Also read this: Why a person with bad credit score can obtain a Gold Loan