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How do you Calculate the EMI of your Housing Loan?

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Although home loans in India are readily available and come with affordable rates, individuals need to ensure proper financial planning before choosing this loan. As a matter of fact, missing even a single EMI can affect the credit score of the borrower. Moreover, in a more severe case, this may even lead to debt traps. 

Thus, individuals need to calculate their monthly installments before settling for this credit option. In this regard, they can use a housing loan EMI calculator that most financial institutions offer online. 

How to use a Home Loan Calculator? 

The affordability of a home loan majorly depends on its EMI payable. Thus, the prospective borrowers can use a housing loan EMI calculator to get an idea about their monthly installment to facilitate error-free, faster computation. 

Following are the steps to check the home loan EMI, using this financial tool. 

  1. Visit the website of your preferred lender.
  2. Use the scaling meter to enter the loan amount, tenure, and interest rate. 
  3. The result will appear on the screen. It will show the interest payable, total payment, including principal and interest, and loan EMIs. 

Alternatively, individuals also can calculate their home loan EMI using the following formula. 

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where, P= principal, R= rate of interest, N= number of installments. 

For example, you have opted for a home loan of Rs.50 lakh with an interest rate of 9% for 8 years. In that case, the EMI would be Rs.73251. However, following this technique, you need to spend a lot of time, and also the result can be erroneous. 

Select financial institutions have this housing loan EMI calculator that you can use to check the EMI payable. Reputed lenders also offer funds up to Rs.3.5 crore to eligible candidates with easy terms of service. 

They also extend pre-approved offers that simplify and expedite loan processing. Such offers are available on a range of financial products like loans against property, home loans, etc. You can also check your pre-approved offer by entering your name and contact number.  

In case you require a substantial home loan amount, but the EMI seems costly, you can also follow some useful tips to reduce the burden of EMIs. 

Tips to reduce Home Loan EMIs

Following are some of the tips that you can follow to make home loan EMIs even affordable. 

  • Opt for a Sizeable Downpayment

Generally, lenders offer a property’s 75% to 80% value as a loan, and you have to pay the rest of the money to purchase a property. Thus, if you make a substantial down payment, the EMI will lower accordingly. 

  • Maintain High Credit Score

Another way to decrease your home loan interest is to maintain a high credit score of 750 and above. It will allow the borrowers to negotiate for lower interest rates and eventually reduced EMIs. To ensure that, individuals have to clear the existing debts, pay credit card bills on time, lower credit utilization ratio below 40%, and follow such tips. 

  • Choose Longer Tenure

Individuals can reduce their EMI burden by choosing a longer tenure. However, they also need to remember that it will increase the total cost of borrowing. Nevertheless, they can avail home loan tax benefits both on principle and interest payment under section 80C and 24B, respectively. 

  • Prepay Frequently

Existing borrowers can further make their home loan EMIs affordable by making prepayment partially or in full. In such cases, they can use sudden financial gains like incentives, annual bonuses, maturity from any investments, etc. 

  • Opt for a Home Loan Balance Transfer 

Another excellent way for existing borrowers to lower EMI is by opting for a home loan balance transfer. This facility allows them to transfer their outstanding loan balance to another lender who offers better interest rates and other feasible terms of services. However, there are certain things to keep track of when they do a home loan balance transfer. 

Thus, besides using a housing loan EMI calculator, individuals can also use other online tools like eligibility, foreclosure, etc. It will help the borrowers to manage their finances better with the right planning. 

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An All-in-one Solution for Credit Card Eligibility Criteria

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Credit Card

All banks offer a wide range of credit cards to their customers, and to new customers as well. Credit cards today come with competitive interest rates on loans and other perks and benefits. Issuers wish to woo consumers in the Indian credit card market with attractive offers like zero joining fees and high cash limits. 

The best credit cards are those which fit the individual needs of customers, and while selecting one, you should essentially consider your spending patterns. Nowadays, with digital and contactless payment options getting popular, the Reserve Bank of India has urged banks and financial corporations to make the process of attaining credit cards easier for consumers.

 Credit card eligibility is no longer an issue, and if you meet certain basic criteria like having a regular source of income, you can get a credit card easily and quickly. 

Credit Card Eligibility

The following criteria have to be met by individuals who want to apply for a credit card.

  • Age – Credit card issuers have different minimum ages below which you cannot apply for a credit card. Some banks let you apply for a credit card at the age of 18 and over, whereas, in other banks, the age is set at 21. Yet other card issuers set the age limit of 25 (as this ensures earning capacity). Banks and card issuers have facilities for issuing credit cards that are add-on cards, and the age criteria for these is set at 18 years and over.
  • Nationality – To apply for a credit card in India, you have to be an Indian citizen with a PAN Card and Aadhaar Card. 
  • Income – To avail a credit card, you must have a regular source of income. Cards are issued to existing bank account holders who draw regular salaries deposited into given bank accounts on a monthly basis. The income criterion differs from card to card and issuer to issuer.
  • For instance, a high cash limit card will warrant a high income generation. Credit card eligibility criteria are easy to meet if you have a source of income that is regular and guarantees your creditworthiness. A steady income may also be generated if the potential cardholder has a fixed deposit that yields a regular income.
  • This is an all-in-one solution for eligibility criteria to be met to apply for a credit card. If you have an existing fixed deposit with a bank or financial institution, it is likely that the issuer will offer you a credit card of choice. This is a win-win situation for you and the issuer, as you are assured of easy access and approval of a credit card, and the issuer is guaranteed of your financial status. 
  • Creditworthiness – Even if you don’t earn a regular salary, but have a substantial level of income from other sources (such as rentals), you are still eligible to apply for a credit card. If you show creditworthiness to the card issuer (with a credit score of 750 or above), your financial standing is spoken for and card eligibility becomes easy. 

Easy Approval

Banks and card issuers make it very easy to get a credit card in the present day and age. The Bajaj Finserv RBL Bank SuperCard is simple to attain with eligibility criteria that isn’t hard to meet, even if you aren’t an existing customer of Bajaj Finserv.

As long as you have proof of identity, address and income, you can get instant credit card approval online. You must be at least 21 years old, and you will have to submit a photograph. The USP of this card is that it is a multi-purpose card. It gives you the convenience of an ATM withdrawal card with up to 50 days of interest-free withdrawals. Moreover, it is a loan card, letting you get a loan for up to 3 months with a nominal 1.16% per month interest rate. Letting you afford anything you want, it is an EMI card as well. You also get complimentary benefits in the health sector with the card tied to the Bajaj Finserv Health App.

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Process to Pay Property Tax Online in Delhi?

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Pay Property Tax

Do you live in Delhi and own property? If yes, then you have to pay property tax online in Delhi.

Nowadays, it is possible to pay property tax online via the portal operated by Delhi’s municipal corporation. 

Property tax payment in Delhi is levied to maintain the city’s infrastructure and other developments. 

Do you want to know the process to pay property tax online in Delhi? Read on.

How to make a property tax payment in Delhi?

You can pay house tax online in Delhi after filling up an online form on the portal of the municipal corporation. 

Once you fill-up the form, a property tax challan will be generated with late fees calculation and the interest amount. You can check your property tax amount and pay it off using one of your preferred payment modes. 

What’s more, different payment facilities have also been integrated into the portal. 

They are like the credit cards, ITZ cash, cash, cheque and DD at recognized CSB Centres and bank desks. 

What benefits does the online portal provide you with?

  • It is possible to digitally file your property tax. It was being done manually earlier. 
  • Maintenance and monitoring of policies of property tax. They are unit area values, taxable property types, unit area values, colony master, exemption and rebate criteria. 
  • Monitoring and maintenance of cheques and payments that are not entertained. 

What properties are eligible for exemption of house tax online?

  1. Any land or building used for public worship and charitable purposes is exempted from paying property taxes. 
  2. Any land and building vested in the council are also exempted. 
  3. Agricultural buildings and lands except dwelling houses are also exempted. You don’t need to pay any property tax in Delhi or elsewhere. 

What are zones in Delhi under each jurisdiction to pay property tax?

A Delhi resident should pay property tax online on one of the portals as per the locality of his/her house. Here is the breakdown of zones in Delhi in each municipal corporation: 

  • South Delhi Municipal Corporation (SDMC) – South, West, Central and Najafgarh zones. 
  • North Delhi Municipal Corporation (NDMC) – Karol Bagh, City SP, Narela, Rohini, Keshav Puram and Civil Lines zones. 
  • East Delhi Municipal Corporation (EDMC) – South and North Shahdara zones. 

If you pay property tax online on the NDMC portal for a property located in SDMC, it will not be entertained. 

Hence, you should know your precise locality of your area and pay house taxes accordingly. 

What if you don’t pay your property tax in Delhi?

If you don’t pay your property tax in Delhi or elsewhere, you will be issued a demand notice. It will be under the NDMC Act. 

Under this, the notice will state you pay off your property tax within a month. It will be issued if you don’t pay your home tax 15 days after the issuance of the bill. 

What’s more, a penalty of up to 20% of the overall property tax may also be levied. You can be asked to pay it as per Section 101 of the Act. 

Why is a property tax collected from residents?

Delhi residents and people residing in other large and small cities of India need to pay property tax. 

Municipal corporations in respective cities do that. It is for the maintenance and upkeep of basic local civic amenities in the area. 

The amount is used for footpaths, sewage systems, roads, streetlights, parks and more. The amount of property tax collected to return to you when you avail of different civic facilities in the city. 

Hence, the amount of house tax paid is for your benefits. Everyone should pay property and other taxes to help your city and country be well maintained and developed.  

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Do You Know the Best CIBIL Score for Home Loan? Find out Today!

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CIBIL Score

One of the leading credit rating agencies of India, TransUnion CIBIL, allots credit scores to individuals with credit history. Since this score gives an insight into the credit behaviour of an individual, financial institutions check it before approving any credit. This score ranges from 300 to 900, and typically 750 and above is considered ideal CIBIL score for a home loan, loan against property and other secured loans. 

As per a TransUnion CIBIL report, almost 90% of the loans are approved to individuals with a CIBIL score of 750 and above. Closer one’s CIBIL score to 900, the higher the chances of getting a loan approved. 

However, the CIBIL score depends on various factors, and individuals need to make conscious efforts to maintain a good CIBIL score suitable for a home loan or any credit in that sense. 

Tips to secure the best home loan CIBIL score 

Lenders usually stress upon the CIBIL score of applicants while approving a loan. Moreover, they also proffer better interest rates and other feasible terms of service to applicants with a high credit score. Financiers may also ask for different credit score requirement for different loans. For instance, 750 and above is considered an ideal CIBIL score for a home loan. 

Therefore, if you plan to avail a home loan or any other advance, it is essential to maintain a CIBIL score close to 750+. Irrespective of your current CIBIL score, you can follow the tips mentioned below to improve it. 

  • Clear dues on time 

Delayed EMI or credit card bill payment affect CIBIL score significantly. Missing even a single EMI can hamper your CIBIL score. The problem intensifies when one services multiple debts at a time. Therefore, it is advised to clear all existing debts before applying for a fresh one and pay the bills on and before due dates. It also saves one from paying penal interest in some cases. 

  • Keep credit utilisation ratio low

Credit Utilisation Ratio (CUR) refers to a percentage that you use from your availing credit limit. Usually, a CUR below 40% is considered ideal in most cases. A higher CUR hurts your CIBIL score, and lenders may view it as a credit hungry nature. 

Therefore, if you plan to get closer to the ideal CIBIL score for a home loan, try to keep CUR as low as possible. 

  • Limit credit inquiry 

Although comparing different lenders help get the best interest rates for any loan, overdoing it can adversely impact the CIBIL score. Hence, if you are planning to opt for a loan in the near future, try to limit credit inquiry to a minimum of at least 6 months before applying.  

  • Keep a tab on FOIR

Fixed Obligations to Income Ratio (FOIR) is a crucial parameter that lenders assess before approving a loan. Typically, a FOIR below 50% is deemed fit to arrive at the ideal CIBIL score for a home loan. It means, if an individual has a monthly income of Rs.50000, his/her total fixed obligations should not exceed Rs.25000, ideally. A high FOIR denotes lower disposable income and higher liabilities. 

Note: While calculating FOIR, do not forget to add the EMI of new loan applied for. 

  • Maintain a healthy credit mix

Applying for the same type of credit every time you need additional funds leaves a bad impression on CIBIL score. Instead, individuals should maintain a healthy proportion of secured credit like a home loan and unsecured loans to keep their credit score high. 

Moreover, if they have a good track record of efficiently managing and repaying each type of debt, the CIBIL score will certainly appreciate over time. 

  • Mention all income sources 

Since lenders relate higher monthly income to better repayment capacity, it is vital to cite all income sources. For instance, a salaried individual can mention additional income sources like rental income, etc., besides monthly salary. 

  • Check credit report regularly 

Although it does not impact CIBIL score directly, a regular check-up of credit report helps detect any discrepancy that may pull down this score. Moreover, it is also necessary to update your credit profile routinely. For instance, if you switched your job or got a salary hike, they should be rightly updated on this report. You should also check if all loan and bank accounts mentioned in report actually belong to you. In case of any discrepancy, get it corrected for the exact CIBIL score. 

A good CIBIL score is crucial for high-value credit like home loans. Some benefits are mentioned below. 

Hence, only knowing about ideal CIBIL score for home loan is not sufficient. Borrowers can improve this score and overall eligibility by following the simple tips mentioned above.

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