Home Loan


Generally the documents required to processing your home loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:

Following are eligible to apply for a Home Loan:
• Salaried individuals
• Self employed professionals/businessmen

You can include your spouse/parents/children as co-applicant if you require higher eligibility subject to maximum of three applicants.

Home Loans Eligibility Factors:-

Home loans are an easy option for buying a house but getting the right amount depends on many factors and this may depend upon the factors listed below:

Monthly Income-

The income that he earns from which he will pay his home loan emi is one of the most important factors that affect the amount of loan. So if you are salaried your per month income and if you are self employed, your yearly profit would identify your home loan max eligibility. The loan amount basically depends upon the net income of an individual and a bank usually provides home loans up to 60 times of an individual net income. For e.g. if a person take home salary is Rs 30,000 he /she may be offered a home loan of around Rs 18 lacs. But it may not be so because a bank takes into account other factors as well while granting a loan.

Other EMI-
Other Emi (Equally monthly installment) is the emi that we are paying to for any other Loan.

Available Income-
The income that is left in our hand after deduction of any emi amount that we are paying for any kind of loan. Your Home Loan Eligibility Calculator will be calculated after deduction of the EMI’s that you are paying.

Property Attributes-
Banks give max upto 85% of loan against the value of the property. So if you want a home loan for a 50 lac property max that u can get is 85% of that ie 42.50 lacs. This too if in case you have the income to give the emi of that loan. So based on Income and property value banks decide your exact home loan eligibility.
Banks also have certain specific criteria before accepting the property for granting a loan. The banks have specific norms with respect to the minimum area requirements for a flat which may be carpet area or built up area. The bank also considers the age of the property in case of an existing property, the location of the property and also the reputation of the builders constructing the property. The bank also performs a thorough analysis and inspection of the property to check whether the title is clear or not, or are there any ownership disputes, whether the bank is free from any encumbrances etc.

Duration of Loan(Years)-
It’s one of the most important factors that one should keep in mind while taking loan. It refers to the no. of years for which the loan has to be taken. Longer the tenure higher will be the interest paid and lower will be amount of EMI to be paid and vice-a-versa. It is one of the parameters which helps in comparing the EMIs from different banks keeping it constant for relationship and easing the judgment.

Interest Rate(in percentage)-
Today there are many lenders in the market. Every bank is offering loans whether it’s a nationalized bank, private bank or foreign bank each of them is there in the show. Every bank offers different rate of interest according to the profile of the customer. So, before finalizing a deal one should consider deals from various banks and than come to a conclusion. And aware of the fact that some people might mislead you by charging high rate of interest at reducing rate and might inform the same at flat rate of interest. So, its always advisable to check full detail with the banks and do better comparison in respect of EMIs , Tenure and Interest Rates and keeping tenure as constant with all the banks will ease your comparison and will result in better analysis, finally leading to a prudent decision.

EMI-
EMI stands for equally monthly installment; you need to pay a particular amount for the Home loan that you have taken.

Eligible Loan Amount-
The net loan amount for which you are eligible for your Home loan is said as Eligible Loan Amount. The loan amount that a Bank can sanction you.

Credit History-
The credit history of an individual plays an important role in deciding the amount of loan. Credit history is basically the credit information report of an individual generated by a credit information company on the basis of individual’s credit records. On the basis of the credit information report an individual is being given a credit score. Based on the credit score a bank or any other financial institution decides whether the individual is eligible for a loan or not. The credit history is generally affected by outstanding credit card payments and any unsecured loans. In India CIBIL is a reputed credit information company and it analyses the financial records of individuals and awards them a score which is known as the “CIBIL score”.

Age-
Age also plays a crucial role in determining the eligibility for a home loan. One has to attain a minimum age of 21 to apply for a loan. The minimum age requirement may be different for different lending institution. The maximum age may vary from 58 to 65 years depending on the income source of the individual. The age also determines the tenure and EMI of the loan. For e.g. if an individual is 35 years of age and retires at an age of 60 then his/her loan tenure will be 60-35=25 years and his /her EMI will be calculated accordingly. Longer the tenure lower will be the EMI’s. However the longer the tenure, the costlier the loan is as one ends up paying more interest rates.

Co-applicant-
In order to enhance the eligibility for having a loan one can have a co-applicant and in this way the total eligible income for having a home loan increases and thus as a result the loan eligibility becomes higher. However bank permits only certain relationships to become the co-applicant, friends and relatives who are not blood relatives to take a loan amount jointly.

Eligibility Criteria
Banks Salaried Self- Employed
CITIBANK 1,00,000 p.a 85,000 p.a.
ICICI 1,44,000 p.a 1,50,000 p.a
HDFC 1,20,000p.a 1,50,000 p.a
IDBI 1,44,000 p.a. 1,50,000 p.a.
LIC HOUSING FINANCE 1,80,000 p.a. 2,00 ,000 p.a.
SBI 1,20,000 p.a. 2,00,000 p.a
Kotak 1,44,000 p.a 1,44,000 p.a
ING VYSYA 1,20,000 p.a 1,50,000 p.a
DHFL 1,44,000 p.a 1,50,000 p.a
STANDARD CHARTERED 1,80,000 p.a 2,50,000 p.a

Age Criteria (in Years)
Banks Salaried Self- Employed
CITIBANK 23 to 65
ICICI 21 to 65 21 to 65
HDFC 21 to 58 21 to 65
IDBI 21 to 60 21 to 65
LIC HOUSING FINANCE 18 to 60 18 to 60
SBI 21 to 60 21 to 70
ING VYSYA 23 to 58 25 to 65
Kotak 21 to 60 21 to 65
STANDARD CHARTERED 21 to 60 21 to 60

Loan Amount
Banks Salaried Self- Employed
CITIBANK 2,00,000 – 2,00,00000 2,00,000 – 2,00,00000
ICICI 2,00,000 – 1,00,00000 2,00,000 – 2,00,00000
HDFC 2,00,000 – 1,00,00000 2,00,000 – 2,00,00000
IDBI 2,00,000 – 1,00,00000 2,00,000 – 2,00,00000
LIC HOUSING FINANCE 5,00,000 – 1,00,00000 5,00,000 – 2,00,00000
SBI 5,00,000 – 1,00,00000 5,00,000 – 2,00,00000
ING VYSYA 5,00,000 – 3,00,00000 5,00,000 – 3,00,00000
Kotak 2,00,000 – 1,00,00000 2,00,000 – 1,00,00000
STANDARD CHARTERED 5,00,000 – 1,00,00000 5,00,000 – 1,00,00000

Tenure (in Years)
Banks Salaried Self- Employed
CITIBANK 5-25 5-20
ICICI 5-20 5-20
HDFC 5-20 5-20
IDBI 5-20 5-20
LIC HOUSING FINANCE 5-20 5-15
SBI 5-20 5-20
ING VYSYA 5-20 5-20
Kotak 5-25 5-25
DHFL 5-20 5-20
STANDARD CHARTERED 5-20 5-20

Loan to Value Ratio
Banks Salaried Self- Employed
CITIBANK 85% of Agreement value 85% of Agreement value
ICICI 85% of Agreement value 85% of Agreement value
HDFC 85% of Agreement value 85% of Agreement value
IDBI 88% of Agreement value 88% of Agreement value
LIC HOUSING FINANCE 85% of Agreement value 85% of Agreement value
SBI 80% of Agreement value
ING VYSYA 85% of Agreement value
Kotak 85% of Agreement value 85% of Agreement Value
DHFL 85% of Agreement value 85% of Agreement Value
STANDARD CHARTERED 85% of Agreement Value 85% of Agreement Value

Current Experience
Banks Salaried Self- Employed
CITIBANK 2 year 3 year
ICICI 1 year 3 year
HDFC 3 year 3 year
LIC HOUSING FINANCE 2 year 3 year
SBI 2 year 3 year
Kotak 2 year 3 year
ING VYSYA 3 year 3 year
DHFL 2 year
STANDARD CHARTERED 2 year 2 year

Processing Fees
Banks Fees
LIC HFL Up to 50 lacs : 10,000 +(Service tax)
50 lacs & above : 15,000 +(service tax)
ICICI HFC 0.50%
HDFC Rs.10000/- or 0.5% of loan amount(whichever is lesser) + Service Tax
IDBI 10000 (up to 20 lacs)
SBI Festive Offer* Zero Processing Fee
*Valid till 31-03-2016
Kotak Mahindra 0.5%
ING VYSYA 0.5% of Loan amount + Rs.500 + Service Tax(10.30%)
STANDARD CHARTERED 0.25% – 0.5%
Axis bank 0.5%
PNB 0.5%
Dena Bank 0.5%
Fedral Bank 0.5%
Union Bank 0.50%

Prepayment Charges
Banks Fees
CITIBANK Nil
ICICI HFC Nil
HDFC Nil
IDBI If Balance Transfer then 2% Otherwise Nil
LIC HFL Nil
SBI Nil
Kotak Mahindra 2% on Balance transfer else NIL
ING VYSYA Nil
Axis bank Nil
PNB Nil
Dena Bank NA
Fedral Bank NA
Union Bank Nil
STANDARD CHARTERED Nil

Documents Required
Banks Salaried Self-Employed
CITIBANK 1) Application form with photograph,
2) Identity & residence proof,
3) Latest salary slip,
4) Form 16,
5) Last 6 months bank statements,
6) Processing fee cheque
1) Application form with photograph,
2) Identity & residence proof,
3) Education qualifications certificate & proof of business existence,
4) Business profile,
5) Last 3 years profit/loss & balance sheet,
6) Last 6 months bank statements,
7) Processing fee cheque
ICICI 1) Application form with photograph,
2) Identity & residence proof,
3) Age Proof
4) Latest 3 months salary slip,
5) Form 16,
6) If current service is less than     2 years than previous company relieving letter,
7) Last 6 months bank statements,8) Processing fee cheque
1) Application form with photograph,
2) Identity & residence proof,
3) Education qualifications certificate & proof of business existence,
4) Business profile, Last 3 years profit/loss & balance sheet,
5) Last 6 months bank statements, Processing fee cheque
HDFC 1) Application form with photograph,
2) Identity & residence proof, 3) Latest salary slip,
4) Form 16,
5) Last 6 months bank statements,
6) Processing fee cheque
1) Application form with photograph,
2) Identity & residence proof,
3) Education qualifications certificate & proof of business existence,
4) Business profile, Last 3 years profit/loss & balance sheet,
5) Last 6 months bank statements,
6) Processing fee cheque
IDBI 1) Application form with photograph,
2) Identity & residence proof, 3) Latest salary slip,
4) Form 16,
5) Last 6 months bank statements,
6) Processing fee cheque
1) Application form with photograph,
2) Identity & residence proof,
3) Education qualifications certificate & proof of business existence,
4) Business profile, Last 3 years profit/loss & balance sheet,
5) Last 6 months bank statements,
6) Processing fee cheque
LIC HOUSING FINANCE 1) Application form with photograph,
2) Identity & residence proof,
3) Latest 3 months salary slip,
4) Form 16,
5) Last 6 months salaried bank statements,
6) Processing fee cheque
1) Application form with photograph,
2) Identity & residence proof, Education qualifications certificate & proof of business existence,
4) Business profile, Last 3 years profit/loss & balance sheet,
5) Last 6 months bank statements,
6) Processing fee cheque
SBI 1) Application form with photograph,
2) Identity & residence proof,
3) Last 3 months salary slip,
4) Form 16,
5) Last 6 months bank salaried credit statements ,
6) Processing fee cheque
1) Application form with photograph,
2) Identity & residence proof,
3) Education qualifications certificate & proof of business existence, 40Business profile,
5) Last 3 years profit/loss & balance sheet,
6) Last 6 months bank statements,
7) Processing fee cheque
ING VYSYA 1) Complete application form,
2) processing fees cheque,
3) Identification Proof,
4) Residential proof,
5) Signatures Proof, Last 3 months salary slip,
6) Form 16 ,Last 3 months bank statement
1) Complete application form,
2) Identification Proof,
3) Residence Proof,
4) Last 3 year ITR,
5) Last 6 months bank statement ,
6) as Processing fees cheque
Kotak Complete application form, Address ProofAge Proof, Income Proof, last 6 months bank statement, last 3 months salary slip
DHFL 1) Complete Application Form,
2) Residence Proof, Identification Proof,
3) Income Proof, Last 3 months Salary slip or Salary Certificate, If Salary is above 10000 per month than Latest Form 16
4) Last 6 month bank statement
Residence Proof, Identification Proof, Business Proof:
1) Brief Business Profile on the letter head
2) Copy of Shop & Establishment License / VAT Registration or any other mandatory license / registration
3) Copy of Partnership deed
Details of Contract,
4) Copy of last 3 years Income Tax Returns,
5) Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm duly attested by a Chartered Accountant,
6) Bank Statement for the last 1 year for the Savings A/c & Current A/c
7) Form 16 /Tax deduction certificate
8) Copy of Advance Tax paid / self assessment tax paid Challan
STANDARD CHARTERED 1) Application form with photograph,
2) Identity & residence proof,
3) Last 3 months salary slip,
4) Form 16,
5) Last 6 months bank salaried credit statements ,
6) Processing fee cheque
1) Application form with photograph,
2) Identity & residence proof,
3) Education qualifications certificate & proof of business existence, 40Business profile,
5) Last 3 years profit/loss & balance sheet,
6) Last 6 months bank statements,
7) Processing fee cheque

Home Loan Interest Rates:-

Bank Name Floating Interest rate Per lac EMI Processing Fee Prepayment Charges % Change in last 6 mths
L&T Housing Finance 9.65% – 10.25% (for Salaried/ SEP) 9.65%-10.50%(SENP) Rs.942 – Rs.982 (for Salaried/ SEP) Rs.942 – Rs.998(SENP) 0.25% -1%OR Rs.10000 which ever is higher +ST, subject to customer profile NIL
SBI – State Bank Of India 9.50% (For Women), 9.55% (For Others) Rs.932 (For Women), Rs.935 (For Others) Festive Offer* Zero Processing Fee
*Valid till 31-03-2016
Nil
1.52%
ICICI Bank Up to 5 Cr 9.50%( For women),9.55%(for others) Up to 5 Cr Rs.932( For women),Rs.935(for others) 0.50% of loan amount upto 1 crore N.A
1.44%
HDFC Ltd 9.50% (For Women), 9.55% (For Others) Rs.932 (For Women), Rs.935 (For Others) 0.5% or maximum 10,000+service tax (12.36%) No prepayment charges shall be payable for partial or full prepayments irrespective of the source
1.98%
LIC Housing 9.60% Rs.939 Up to 50 lacs : 10,000 +(Service tax)
50 lacs & above : 15,000 +(service tax)
Nil No Change
AXIS Bank 9.60% – 9.65% Rs.939 – Rs.942 Upto 1% of the loan amount subject to minimum of Rs.10,000/- Nil
0.9%
DHFL 9.55%(upto 25lacs),then 9.65% Rs.935(upto 25lacs),then Rs.942 1% for Salaried & 1.5% for SENP NIL
2.46%
IDBI 9.75% Rs.949 NIL If Balance Transfer then 2% Otherwise Nil
0.97%
Union Bank of India 9.65% – 10.40% Rs.942 – Rs.992 N.A NIL
2.5%
Bank of India 9.70% Rs.945 0.25% of loan amount Min.Rs.1,000 and Max. Rs.20,000/- Nil
2.45%
Indiabulls Housing Finance Limited 9.55% (upto 3 cr),then 10.25% Rs.935 (upto 3 cr),then Rs.982 Below 28 lacs = Rs.7500 28 lacs- 50 lacs = 0.50% Above 50 lacs = 0.5% to 1.00% of the loan amount NIL
2.46%
Corporation Bank 9.65% Rs.942 0.50% of Loan amount (Max.Rs.50,000/-) NIL No Change
United Bank of India 9.75% Rs.945 Nil under Festive Offer till 31.12.2015 N.A
Tata capital Housing Finance ltd 9.60% (Salaried), 9.80% (SEP/SENP) Rs.939 (Salaried), Rs.952 (SEP/SENP) 0.20 (Minimum Rs. 5,000) to 0.25% off the loan amount + Service tax N.A N.A
HSBC Bank 9.55% – 10.05% (for Salaried) 9.55% – 10.10%( for Self Employed) Rs.935 – Rs.968 (for Salaried)
Rs.935 – Rs.971 (for Self Employed)
1% of the loan amount applied for, subject to a minimum of Rs 10000 plus service tax. This fee is payable on application and is not refundable Nil N.A
Indian Bank 9.65% Rs.1302 0.25% of loan amount with a maximum of Rs.20,000 Nil
2.92%
Deutsche Bank 10.50% Rs.998 12000 + Service Tax Nil N.A
Standard Chartered 9.75% Rs.949 0.5 % – 1.50% NIL
1.55%
Federal Bank 9.68% – 9.83% Rs.944 – Rs.954 0.50% of the limit sanctioned with a minimum of 3,000+ST, maximum of 7,500+ST N.A No Change
Allahabad Bank 9.95% Rs.961 upto 30 lacs: 0.60% of the loan amount subject to max. Rs.12000
30 lacs – 75 lac: 0.45% of the loan amount subject to max. Rs.24000
above 75 lacs – 300 lacs: 0.35% of the loan amount subject to max. Rs.60000
above 300 lacs: 0.25% of the loan amount subject to max. Rs.70000
NIL
2.92%
Central Bank of India 9.95% Rs.962 Rs.20000/- or .50% of loan amount subject to maximum Nil
2.38%
UCO Bank 9.70% Rs.945 0.5% of the loan amount, minimum Rs.1500/- & maximum Rs. 15000/- NIL
2.45%
Bank of Baroda 9.65% Rs.942 0.25% of loan amount Min.Rs.1, 000 and Max. Rs.20,000/- N.A. No Change
Canara Bank 9.65% Rs.942
1.96%
Kotak Bank Upto 14.5% Rs.1280 upto 1.25% 2% on Balance transfer else NIL
4.65%
Dena Bank 9.70% Rs.945 0.50% of sanctioned limit Nil
2.5%
First Blue Home Finance 10.25% (for Salaried / SEP), 10.75% (For Self Employed) (Upto 25Lacs), Then 10.75% (for Salaried / SEP), 11.25% (For Self Employed) Rs.982 (for Salaried / SEP), Rs.1015 (For Self Employed) Salaried: Up to 30 lacs :7300
30 – 75 lacs : 11800
75 lacs & above : 15,000 + service tax(12.36%)
Nil N.A
Vijaya Bank 9.65% Rs.942 N.A N.A
0.49%
Syndicate Bank 9.70 Rs.888 upto Rs.25 lacs – 0.0625% (Min Rs 250 – Max Rs 1250) 26 lacs to 75 lacs – 0.0625% (Max.Rs.1625/-) above Rs.75 lacs – Rs.2500/- Valid till 30.09.2015 N.A
2.43%
PNB Housing Finance 9.75% – 9.95% (Salaried / S.E Prof) 9.95% – 10.25% (S.Emp Non Prof) Rs.1059 – Rs.1072(Salaried / S.E Prof) Rs.1072 – Rs.1090 (S.Emp Non Prof) 0.5% NIL No Change
Citibank 9.85% – 9.95% Rs.955 – Rs.962 Rs. 5000 (Application fee) NIL No Change
Oriental Bank of Commerce 9.90% -10.40% Rs.958 – Rs.992 NIL NIL No Change
Indian Overseas Bank 9.90% Rs.958 A flat rate of 0.58% of the loan amount- maximum of Rs. 10,190/- There is no hidden charge. This is subject to change from time to time without prior intimation. N.A
1.95%
Punjab National Bank 9.60% Rs.939 NIL NIL
2.43%
Development Credit Bank 11.50% Rs.1066 1% Nil N.A
State Bank of Travancore 9.95% Rs.962 upto Rs.25,000 – Nil
Rs.25,000 above to Rs.2 lacs – Rs.500/-
Rs.2 lacs above- 0.50% of the loan amount maximum Rs.10000/-
NIL N.A
Bank of Maharastra 9.70% Rs.945 0.25% of the loan amount (subject to maximum of Rs.25000/-) Nil No Change
Dhanalakshmi Bank 11.40% Rs.1060 1.00 % of loan amount + service tax (subject to minimum of Rs. 10,000 + service tax) N.A

 

Home Loan EMI Calculator

How EMI Calculator works or Calculate EMI

Our EMI calculator is easy to use and is quick to perform. Use our EMI calculator as a guide before availing for any kind of loan. EMI calculator let’s you judge how affordable a loan can be for you. Always use the calculator to get a quick quote on your EMIs. You can calculate home loan and personal loan EMI with this calculator. If the quote satisfies you, then apply accordingly. It is this simple.

• Enter the loan amount you wish to avail in the EMI calculator.
• Then enter the loan tenure (months).
• And the rate of interest (reducing).
• Press “calculate”.
• Our EMI calculator will tell you just how much your EMI amount comes to.

Along with your EMI you also get results like :
• total amount with interest.
• flat interest rate PA / PM.
• total interest amount.
• yearly interest amount.

And if you think the EMI is a bit more than you can afford, you could always re-calculate.
This time enter either less loan amount or longer loan tenure in the calculator.
You can also continue to re-calculate until our calculator gives you an EMI that you are satisfied with.

Also remember to compare quotes from different banks.
You can do this by entering the loan amount and the rate of interest with the loan tenure of, say bank “A”. See how much it amounts to.
Then do the same again of bank “B”. Whichever suits your needs and fits your wants, apply.

In today’s scenario banks are coming your way with bouquet of offer for your loan requirements. To have a finest deal from these banks one should ponder to following points before cracking a deal.
Don’t be corrupted by paying high EMIs at low rate of interest

Home Loan EMI Calculator

Home Loan Amount    Rs.
Interest Rate % Per Annam
Loan Tenure Years

Pre Payment Benefit Calculator

Many borrowers tend to take the loans to buy a home or to purchase a car. Some even take loans for satisfying personal needs or to fulfill the medical emergency requirements. All of these loans have a perfect and planned schedule for repayment along with the interest rates. If the customer has applied for the amortization of the loan, then the lender also allows converting a part of repayment installment to cover up the principal amount. However, some borrowers opt directly for the prepayment that is, paying off the full amount of loan in a lump sum amount at one time. Reasons for such prepayment can be stated as below:

Some borrowers wish to take advantage of the lower interest rates that are available with other lenders. So, it is observed that they arrange for refinancing loans. They borrow with the lower interest rates to pay off the previous debts that would require them to pay more.

Other payers prefer to buy out their properties in order to pay off the current debts and start a fresh. This type of repayment is a rare phenomenon, where the borrower needs to own a property which shall be of equal value as the loan amount.

Loan Amount
Tenure                   Select 1 2 3 4 5  (in Years)
Interest Rate – Bank A
(Without Zero Pre Payment)
 %per annum
Pre-payment Charge – Bank A 5%
Interest Rate – Bank B
(With Zero Pre Payment)
 %per annum
Pre-payment Charge – Bank B NIL
After how many EMIs you want to pre pay   Select –>                (in Months)
 

Prepayment comes with its benefits and disadvantages. There are several advantages of making prepayment as freedom from market risks, benefit from lower interest rates and most importantly completion and payment of loan obtained. However, the prepayment is also a subject to risks, especially where mortgage investments are involved to make payments. Also, some banks and financial institutions levy prepayment charges to the borrowers to compensate for finishing the deal early. There also some other costs involved which may prove harmful for the finances of the prepaying borrowers.

Prepayment calculators are based on the basic model of calculating the installments for the customers. However, the prepayment calculator would generate full amount of the loan balanced and to be repaid at a given date, with interest payments. This type of calculator would take into consideration the following things such as:

  • Balanced Loan: the amount to be repaid at the date of closing the deal
  • Interest rate at which the loan was obtained
  • The maximum year of tenure for which the deal was made
  • Any costs or prepayment charges involved in this process
  • Amortization schedule or part paid amount (if considerable)

How does Part Payment Help?

Calculators are used in financial industries especially for finding exact amount by the banks or financial institutions. The loan calculators are uniquely designed for involving various terms like period of the loan, interest rate, total amount and so on. It then calculates the monthly installment or the balance payment for the sake of the customer. Almost all authorized lenders use the repayment and part payment calculator to avail the exact details to their borrowers.

Loan Amount  
Tenure (in Years)                                 Select 1 2 3 4 5
Interest Rate  %per annum
Part Payment Amount  
After how many Emi you want to make part payment   Select

What is meant by Part Payment?
It has been seen that when people take loans, they accept to pay the total payment with the rate of interest that is applicable on that amount. However, with normal repayment policies people pay off only the interest on mortgage, not the amount that has been taken as the loan. Thus, there is another option to use their investments at the end to cover up remaining balance. However, not all customers own investments or properties for such conversion. Thus, this option serves as a working solution for only few customers.
For all other customers of loans and mortgages, part payment is a great option. Here, the monthly installments are divided into the interest payment and mortgage repayment. The parts can be arranged as per your choice. You can devote a larger part for the interest, and a smaller amount for the payment of loan. These part payments do not assure that the whole amount of loan will be paid at the end of tenure; however, they make at least a part of repayment on their account.

Part Payment Calculator
Part payment calculator carries out the measurement of the monthly installment to be made with the bank, along with interest rate and loan amount. It takes into account various things like the loan amount, minimum assured period for the payment, interest rate, and future predictions and so on.  These payments are arranged by the banks and financial institutions. So, if you want to apply for the part payment system, then you first have to intimate your lending bank in advance. Thereby, the lender will consider your request and start the scheme on your account.

Part time calculators are also available on various websites on Internet. You have to fill up your details in the installed software under the name of part time calculator. It will give you an exact picture of the amount you will have to pay as monthly installment and advantage you will obtain with this scheme.

Better compare EMIs with same tenure And then with rate of interest

(1) Check your reimbursement power (EMI) : You repay the loan in equated monthly installments, or EMI, consist of principal as well as interest as its constituent. Since you pay an equal amount month after Month, these payments are called equal monthly installments. The EMI depends on the amount of the loan, the interest rate and the term of the loan. It Is an unequal combination of principal repayment and interest cost every month. In the Beginning bank recovers their interest payments and gradually more of the principal repayment by the end of the loan tenure. EMI amount should range maximum to the 40% of your monthly income. One should consider offers from various banks as it may differ from one bank to another bank. Your involvement into the process might end up in a win- win situation for you.

(2) Market around (Rate of interest): Today there are many lenders in the market. Every bank is offering loans Whether it’s a nationalized bank, private bank or foreign bank each of them is there in the show. Every bank offers different personal loan rates and home loan rates according to the profile of the customer. So, before finalizing a deal one should consider deals from various banks and than come to a conclusion. And aware of the fact that some people might mislead you by charging high rate of interest at reducing rate and might inform the same at flat rate of interest. So, its always advisable to check full detail with the banks and do better comparison in respect of EMIs , Tenure and rate of interest and keeping tenure as constant with all the banks will ease your comparison and will result in better analysis, finally leading to a prudent decision.

(3) Tenure: It’s one of the most important factors that one should keep in mind while taking loan. It refers to the no. of years for which the loan has been taken. Longer the tenure higher will be the interest paid and lower will be amount of EMI to be paid and vice-a-versa. It is one of the parameters which helps in comparing the EMIs from different banks keeping it constant for relationship and easing the judgment.

(4) Loan Disbursal Time: Loan disbursal time is the period in which loan is processed and the customer receives the demand draft from the bank. Disbursal time differs from one bank to another bank. Its an important factor because there is always a reason behind taking a loan if the opportunity of that objective is lost than its of no use better ask your bank the Turn Around Time and take the loan considering your urgency or better plan it in advance.

(5) Processing Fee, Administrative Charges & Pre-Payment Charges: When you Borrow, Your loan carries other charges as well apart from interest that may include Processing Fee which bank charges to process your file and pays to the processing hubs, charges may vary from 1-2% of the loan amount sanctioned by bank. Besides this there is Pre-Payment Charges also which loan carries for the Pre-Closure of the Loan it’s always advisable to take loan which has no penalty for the pre-closure of loan because it might happen in the long-run you have enough money to pay your debt and thereby save interest on the same else you can have the opportunity to get your loan transferred at low rate of interest.

(6) Insurance Facility: Some bank offers insurance facility by charging small amount of premium which is added to the EMI paid for the loan amount and the person is insured for the amount he has taken loan and incase something unexpected happens. Assured amount will be given to the bank without burdening the members of the family.

NBFC:-

Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions typically are restricted from taking deposits from the public depending on the jurisdiction. Nonetheless, operations of these institutions are often still covered under a country’s banking regulations. The specific banking products that can be offered by NBFCs depends on the jurisdiction, and may include services such as loans and credit facilities, savings products, investments and money transfer services.

  • Services provided:-

NBFCs offer most sorts of banking services, such as loans and credit facilities, private education funding, retirement planning, trading in money markets,underwriting,  stocks and shares, TFCs(Term Finance Certificate) and other obligations. These institutions also provide wealth management such as managing portfolios of stocks and shares, discounting services e.g. discounting of instruments and advice on merger and acquisition activities. The number of non-banking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. Non-bank institutions also frequently support investments in property and prepare feasibility, market or industry studies for companies.

However they are typically not allowed to  take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments.

  • Classification:-

Based on their Liability Structure, NBFCs have been divided into two categories.

  1. Category ‘A’ companies (NBFCs accepting public deposits or NBFCs-D),
  2. Category ‘B’ companies (NBFCs not raising public deposits or NBFCs-ND).

NBFCs-D are subject to requirements of Capital adequacy, Liquid assets maintenance, Exposure norms (including restrictions on exposure to investments in land, building and unquoted shares), ALM discipline and reporting requirements; In contrast, until 2006 NBFCs-ND were subject to minimal regulation. Since April 1, 2007, non-deposit taking NBFCs with assets of `1 billion and above are being classified as Systemically Important Non-Deposit taking NBFCs (NBFCs-ND-SI), and prudential regulations, such as capital adequacy requirements and exposure norms along with reporting requirements, have been made applicable to them. The asset liability management (ALM) reporting and disclosure norms have also been made applicable to them at different points of time.