Category: Home Loan

Important Facts to Look For in The Real Estate Bill

The real estate industry has cordially praised the amendment of Real estate (Regulations and Developments) Bill in 2015 approved by Union Cabinet. This bill has been introduced to unite the regulations and environment in the industry. The main motive of the bill is to provide the best services to the buyers and investors by giving the possession on time and fastest project deliveries, proper and effective redressal of customer grievances, safe and secured investments and maintained growth in the realty sector

IMPORTANT FACTS TO LOOK FOR IN.jpg
Some featuring facts which are favorable for the homebuyers in the unauthorized market are discussed below-

Regulations of real estate projects and agents- A disordered realty sector has many small association developers and agents who are willing to expand themselves day and night. There was no organizer or any association who can control and regulate this disarranged industry. There was a lack of laws and rules which can stop the immoral activities of developers to save the buyers interest and hard-earned money. The bill is now introduced to bring the stakeholders under the regulations where they can suffer from 3 years imprisonment for developers and 1 year for agents for not obeying the laws.

Escrow amount limit increase- A developer uses a temporary account to stop the outflow of funds from one project to another. This account is called the escrow amount. After the introduction of the bill, the developers are bound to keep 70% of funds in escrow amount. Though some of the developers welcomed this measure and some have criticized it.

Disclosures of information are compulsory– A common phenomenon in the real estate is homebuyers are not being provided with full information about the projects. The amendment now made it compulsory for the developers that they should convey every information about the projects including layout plans, floor plans, and registration of the projects, details of the architect agent and contractor which will make property dealing transparent.

Weighing consumer opinion– After the amendment of the bill, the promoters and developers are being restricted for making changes in the project specifications without taking the consent of the buyers and investors.

Simplify the grievance redressal– The bill ensures that the grievances which are raised by the buyers will be solved and settlement of the disputes will be done by forming Appellate Tribunal by appointing adjudicating officers. The customers can appeal in the district courts in 644 consumer courts. This process will decrease the expenditure and consume less time for redressal.

Buyers can plan to invest in Flats In Rajarhat as the projects are capable to deliver the possession on time and all the apartments are made with good interiors.

Tips To Manage Home Loan EMIs Under Financial Crisis

A home loan is nothing but a long-term financial commitment. Life is not a bed of roses. Hard times can be at the door at any moment. One needs to be prepared for combat with all such situations which can be nerve-testing such as- a sudden job loss, loss in business, temporary outflow for prolonged disease etc. Being in home loan repayment tenure, all these temporary issues can be wisely handled albeit.

Bank will instantly label you as a defaulter with a single skip in EMI repayment. Of late, the government of India fortified the laws governing non-performing assets (NPAs), by giving more power to the financial institutions, to recover the NPAs. As a result, defaulting on EMIs will be observed more rigorously from the time forth.

What happens if you default on home loan EMI?
Based on a healthy credit score banks will sanction your home loan approval. Failing EMI repayment can hit the credit score. It will get in the way of future loan application. Banks generally wait for two EMIs to be missed. Banks are more interested in recovering the fund rather than getting into legal proceedings or property auctioning. As a last resort, a legal notice will be sent to the borrower and the loan will be classified as a Non-performing Asset (NPA). If the borrower unable to pay, then, the authorized officer will ask for the physical possession of the mortgaged property, by serving a demand possession notice to the borrower.

Ways to manage home loan EMIs during financial distress
“Cheap home loans shouldn’t be the only factor for borrowing a cumbersome loan amount. Before borrowing home loan it’s wise to have an assessment of your capacity of repayment counting your monthly expenses and also securing enough savings for unforeseen happenings. A proper assessment can actually safeguard you from an extreme financial crisis,”- suggested Mr. Mahesh Somani, Chairman- National RERA Committee, National Association of Realtors India (NAR-INDIA).

Here are immediate pointers on how one can manage their EMIs under financial stiffness-

• Inform the bank about your situation– When in an unfavourable situation,inform the financial institution about your issues. Considering your situation most lenders would try to help you out than to take any strict action.

• Consult financial advisors or credit bureaus for help– If you find that the situation is anyhow not favourable for repayment, you can always take assistance from financial advisors or credit bureaus for further guidance. They will definitely help you in maintaining a good credit score.

• Quick repayment– Quick repayment of the principal amount shortens the tenure as well as reduces the interest burden of the borrower. A double EMI repayment is permissible on annual basis.

• Careful spending– Apart from credit obligations, there should be a certain upper cap on your monthly spending. Have some savings for emergency situations.

• Home loan insurance– Taking an insurance against home loan reduces borrower’s obligations towards the loan repayment. It can even help you to pay up to 3 interests in case of job loss.

–LNN (Liyans News Network)– Approved by leading banks. 3/4bhk residential property in north Kolkata for sale. Easy available home loan facility. Offering attractive pay packages. Hurry!

Why Transferring Home Loans Appears Problematic To Homebuyers?

Transferring home loan from one bank to another for better facilities and lower interest rates is attractive option for existing home loan borrowers. However, this entire process of transferring includes several charges and suits that the applicant should be aware of. Unsatisfied loan borrowers generally opt for this switching. Usually they have a ‘plan-B’, in case they are not happy with their existing banking services, besides the dearth in services and inflexible renegotiation terms of the lender such as – changing the tenure or reworking the EMI, also influence a buyer to shift their ongoing loan repayment tenure to any other lender with better facilities.

Previously, banks wouldn’t allow home loan interest rate cuts to the existing borrowers. Passing on the same benefit will definitely benefit the customers with better loan savings during repayment tenure. If banks make it happen, then transferring home loans will be benign.

In your home loan tenure you actually end up paying greater amount in installment more than the actual purchased price of the property. In case you decide you renovate the property within this due period, in most of the cases getting a renovation loan becomes tough as most of the lenders don’t grant an increased loan amount for this purpose. Generally under these circumstances borrowers tend to transfer the loan cycle to another bank with better services and go through several complicated processes.

Tiresome process
For transferring home loan at first the borrower has to submit application to the existing lender. Then the bank will provide the consent letter or the NOC along with the details of the outstanding amount. All these documents are needed to be served before the other bank in which the borrower wants to shift the loan.

The other bank will process it as a fresh loan approval request and process the documentation accordingly. The documentation process includes submission of the employer’s letter, salary slip, photo ID proof, bank statement etc. That means one has to redo the process from the very beginning. Transferring home loan requires thorough documentation, coordination and following up. There will be problems, if the existing loan is jointly taken or the income levels have declined. Being irregular in paying EMIs can cause application rejection too. After total satisfaction of documentation the new bank will approve the application and will ask the previous bank to close the existing account.

Hanging risk involvement for the new bank
Once the transaction is completed and the property papers are handed over to the new bank, then the remaining post-dated cheques or ECS get cancelled. The new bank then runs an open-ended risk because the existing bank releases the mortgaged documents of the property only after receiving the payment. The bank takes such risk just to grab new customers. As the new bank treats this application as a fresh loan approval process, therefore it asks the borrowers to pay the processing fee, stamp duty, notarisation charges and franking charges which is equivalent to 0.5%- 1% of the loan amount.

An indefinite process
A home loan transfer process doesn’t have any property route. No actions can be taken legally against the bank, if it doesn’t allow for the transfer. Thus, mostly borrowers prefer to stick to their existing borrower to avoid further litigations.

–LNN (Liyans News Network)– Visit us to buy flats in Kolkata. Avail real time real estate solution for free. 8lac+ listing across 100 cities of India. Buy/Sell/Rent properties online. Kolkata’s No: 1 property portal.

RBI Cuts Rate To Boost Affordable Housing To Boost Affordable Housing

Even RBI has come to the line to promote PMAY flagship project ‘Home for all by 2022’. Real estate experts consider that the apex bank of Indian economy has cut the repo rate at the onset of the Indian festive season just to boost the demand for affordable housing sector. A good monsoon in progress, low inflation numbers, favourable global environment and overall uptick in industry sentiments- bank has pointed out these facts as the catalyst of the recent rate cut.

RBI slashed the repo rate by 25 basis points to 6% at its third bimonthly policy check. The revised repo rate will go well with the two major policy reforms by the government ‘RERA’ and ‘GST’ which will eventually be favourable for the both buyer and the developer, during the investment in affordable housing. A rightly measured rate cut is the appropriate mediator to push the realty business. Affordable housing sector is not beyond that. By far the Central Bank has reduced their short-term lending rate 175 bps since 2014. With this revised rate cut the sluggishness of Indian real estate market will be recovered to a great extent.

Affordable housing in fact fed the real estate during the post demonetization season; while the entire market had fallen flat. The sector has been kept out of GST purview. The rate cut couldn’t have come more right time than this, when the affordable housing sector is expecting to be soared. Banks even relaxed the home loan percentage on purchasing affordable flats. Luring with the input tax credit by the government, market is expecting some major cash inflow from the domestic and overseas investment sector. The repo rate is beneficial at this moment as the current inflation rate is hanging at low levels less than 2%. Real estate sector has been on the way to be recovered by the means of low construction rate, supervision of RERA, lower price of ready to move apartments post GST and now with revised repo rate by RBI.

Real estate industry is hoping some positive come back as RERA is set to bring the accountability and visibility of the real estate business. RERA won’t allow any fraudulence in realty business. This move will surely able to bring back an investment boost along with the primal sentiment of home-buying. There is a temporary market slowdown observed after RERA enforcement. New project launches have been significantly shortened. This revised repo rate is a 7 year low. Nevertheless, the rate cut announcement sends out positive signals to the foreign investors and PE firms. With various progressive measures government will set affordable housing sector the big ticket of future investment. Indian real estate market is stepping towards progress with the deployment of RERA and GST rollout. Moreover rate cut comes as amen to Indian realty growth.

_LNN (Liyans News Network)- Visit www.liyans.com- the leading property portal in Kolkata to keep yourself updated with the latest news on Indian real estate and track every move of the market from the inception.

Home Loan Above Rs. 75 Lac Gets Cheaper

India’s central banking institution the Reserve Bank of India has reduced the weight-age on home loans above 75 lacs from 75 per cent to 50 per cent lately. RBI has taken this initiative to support banks for disbursing more volume of home loans for home buying in the big business cities.
In its monetary policy RBI cites that residential property sale holds a central position through its forward and backward connection with country’s economy. It has been fixed on as a counter cyclical measure to cut down risk weigh on verified categories. Standard asset provisioning on such loans will also be declined accordingly.

RBI adhere the REPO rate at 6.25% and the Reverse Repo rate at 6% in its monetary policy review. The Marginal Standing Facility (MSF) – an emergency funding facility will stay in at 6.5% as also the Cash Reserve Ratio (CRR) of 4%.
An additional move that will alleviate the liquidity in banking system by close to Rs 50,000 crore, RBI has lowered the Statutory Liquidity Ratio (SLR) – the decree for least possible holding of government securities. Previously banks used to invest 20.5% of their deposits in gilts; which will now be replaced by 20% and it will be effective from June 24, 2017. This reduction decision has been made on the fact of allowing banks coadjute with the intercontinental norms on liquidity coverage that will be proclaimed January 2019 onwards.

Before this revelation it was apprehended that RBI will make delay in disclosing the rates. Industry experts expect that RBI will relax their standpoint from’ neutral’ to ‘accommodative’ to convey that easy money condition would conquer. Meanwhile petrol prices have been jumped up again across the country since the inflation numbers were made public and chances are it will ascend further. However, RBI continued to stick with the neutral stance on the ground the easing of price of commodities for short term period.

–LNN (Liyans News Network)– Contact us if you are looking for an outstanding property in north Kolkata. Check out the wide ranged luxurious development around Kolkata north. Browse our web portal to have the best comparative aspect of the on-hand and up-coming projects.