Buying a home is the biggest purchase that you will ever make in your life. To simplify the purchase, banks and NBFCs offer versatile home loans to eager house buyers. These borrowings carry certain restrictions and qualifying criteria.
Home buyers are often confused while applying for a home loan. To simplify the process for them, we have presented a simple guide of essential documents and eligibility criteria.
Who is Eligible?
Several banks and NBFCs have versatile eligibility criteria. General eligibility criteria is as follows-
- Any person, proprietor, partner, partnership entity or group, corporate entity and other associated parties are eligible to apply for house loan.
- Builders and land developers are also eligible to apply.
Once you are eligible, you can fill the application and then be ready to submit the required mandatory documents.
What are the documents required?
The list of documents to be submitted varies according to applicant’s profile. Such documents vary according to the income profile of the applicant.
List of documents for salaried individuals
- 3 Months’ salary slips
- Salary certificate
- Form No-16
- Copies of bank pass books, bank statement for last 6 months, and key account details.
- Company profile
List of Documents for business owners
- Last 3 years income tax return files
- Last 3 years balance sheet, P&L account copies duly signed and verified by chartered accountant
- Brief on business profile
- Bank statement for past 1 year
- Other business related statements required by loan sanctioning committee
What is the Eligibility Criteria?
After gathering the required documents, you will still require to meet the following eligibility criteria to get the loan sanctioned.
- Valid KYC documents of applicants and co-applicants
- Proof for continuity of income
- Clean loan repayment and credit history
- Technical and legal clearance for the property to be held as collateral
- References and witnesses
After fulfilling the eligibility criteria, your loan application will become valid for processing.
“If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance.” – Suze Orman
Buying a life insurance policy is the need of the hour as we live in a fast-moving age filled with risks and uncertainties. To purchase a policy, most of us will contact a friendly insurance agent or approach a financial broker. However, both these entities will only promote those policies that promise them higher commission.
How do you pick up an insurance policy that will perfectly match your requirements and fit within your budget? To avail some of the best policies in the market, you should definitely buy a term plan online. Here are a few simple tips that teach you how to buy term insurance online.
- Keep Comparing
If you plan to fetch the best policy that perfectly falls within your budget and provides substantial life cover, then go online and keep on comparing the different policies.
- Be ready to answer Questionnaires
Questionnaires will be an inseparable part of the online buying process. Different insurers are known to post a variety of questions in order to understand the requirements of the purchaser.
Some of the common questions asked include:
- Basic information on health
- Vital body stats such as height, weight, age, blood-pressure, etc.
- Lifestyle habits: Smoking/ Alcohol consumption
- Work habits: sedentary or physically exerting
- Choose A Good Brand
You may avail a good policy at a lower premium from a certain company whose brand is not established in the market. Before you fall for this low premium trap, ensure whether the company is legit and maintained a decent claim settlement ratio.
Thus, it is recommended to buy a branded insurance policy to avail flexible claims and quick customer service.
- Check Out the Reviews
Reviews play a key role in understanding the claim settlement ratio of a particular insurer. Checking reviews will give you an idea about the number of claims settled and the percentage of the sum assured return. So, check the reviews to get a fair idea of the term plans.
Moving funds across countries has always being a concern for travellers and non-native residents. Traditionally, banks and cheques were the only available means at hand that were used to translocate funds across countries. Owing to the rapid development in technology, this scenario is changing soon.
Travellers no longer cling to bank cheques or third-party remitting services and are found using some of these below mentioned money transfer techniques. These methods are low-cost, time efficient, secure, and are ideal for initiating overseas transfers.
- Bank Transfers
Wire transfers initiated through banks have always been the first choice of people whenever it came to fund transfer. Such service is provided by most of the banks to their customers for a small transaction fee.
- Wire transfers are convenient, speedy, and you can avail the best foreign exchange rates on transferred amounts.
- Banks may charge a flat transaction fee, or may deduct certain percentage of transaction amount as commission.
- Personal Cheques
Unlike bank wire transfers, this is a conventional method of relegating funds. Personal cheques are widely used for domestic exchanges such as bill payments, debt repayment, etc. At international level, they can be used to move cash from one account to another.
- You only need the recipient name to write a cheque.
- You will avail the best Forex rate as it is a bank-based transaction.
- Fees are nominal or negligible as certain number of cheques are provided at complimentary level by banks.
- Bank Remit
The first two methods mentioned above require you to have a bank account. However, remittance services like Axis Remit do not carry any compulsion of holding a bank account.
- You can approach a bank’s branch, fill up the necessary documents, and quickly initiate a transfer.
- You will get the best concurrent exchange rate, and banks will charge a flat fee for the service.
- ACH Transfer
ACH or Automated Clearing House is a form of electronic fund transfer system in USA that is used at local as well as global level.
- ACH is governed by National Automated Clearing House (NACH), a federal agency that regulates inter-banking clearance of electronic payments and fund transfers among the participating banks.
- Money is received by the recipient within four days of initiation of transaction.
- Banks do not charge anything extra for this service.
- Online Transfer
This is the easiest way of transferring funds from one bank account to another.
You are not required to visit the bank to initiate such kind of transfer.
You can log into the bank’s website and translocate the desired amount to the designated recipient within minutes.
You only require the complete name and address of the recipient along with the receiving bank’s or financial body’s IBAN or SWIFT number.
A personal loan is one which is taken for the purpose of personal, household, or family’s use. It can be used for the purpose of medication, education, purchase of household equipment and much more. They may be secured, or unsecured; secured by the product purchased, or unsecured if the payment history of the applicant is good.
The person availing the loan has to pay EMI (Equated Monthly Installments). This is the most crucial component to be taken into consideration while availing any kind of loan. Understanding its importance, AXIS Bank has provided its customers with a handy EMI Calculator which will help those that have availed a loan know how much EMI they have to pay. How to use an EMI Calculator for personal loans is given below:
- Enter the information given below into the EMI Calculator
1) Principal Loan Amount you have taken
2) Term of loan (months or years)
3) Rate of Interest (percentage)
4) EMI payable in advance/arrears
- Adjust values with the slider provided. Type the values if they are more precise.
- The EMI Calculator will now calculate the amount.
- A pie-chart showing the break-up of the total payment is also displayed.
- Total interest vs principal amount made against the loan is shown.
- The total payment made during the tenure of the loan is displayed
The EMI Calculator is a blessing as it makes calculating the amount of EMI payable easy.