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Home Loan Moratorium Period: What Is It, and Why Is It Important? 

Posted on by HomeCapital Team

The decision to get a home loan in order to finance the purchase of a home is a significant step financially. Moreover, depending on how many other financial obligations you have, it may not always be possible for you to begin the repayment process quite immediately. It’s also possible that you’ll need to postpone the repayment of your home loan if your investment project is delayed because of construction issues. That’s where the home loan moratorium period comes into the picture.  

What is a Moratorium Period?  

During a moratorium period, the borrower is exempt from making a monthly EMI payment on their home loan. This implies that you are not required to immediately begin making payments on your home loan. Instead, you might use an EMI holiday before restarting your payments. Financial institutions provide this option so that borrowers may improve their financial planning and get more familiar with the tedious obligations of a home loan in a way that is more straightforward. 

What Does the Home Loan Moratorium Period Mean? 

Although the word ‘moratorium’ was more often associated with student loans in the past, even housing loans now come with a predetermined moratorium period. For example, if the development is delayed for whatever reason, the bank may let you take a break from making your monthly EMI payments, provided it is specified in the home loan agreement 

Once the borrower receives a home loan amount, their tenure for loan repayment starts from the date mentioned in their loan agreement. The repayment of the loan is made through Equated Monthly Instalments (EMIs). Moratorium period is when a borrower does not have to make any payment to the financial institution from which the loan was taken. However, the borrower will still be liable to pay interest generated during this holiday tenure. 

In a situation where the possession of the house gets delayed then banks can allow you to go on an EMI holiday, based on the agreement finalised between the bank, developer and the buyer. There is a period of 18 months or until one month after the facility is completed, whichever comes first. The time period might be as little as one month for properties that are already prepared for occupancy.  

However, one should not confuse the meanings of a moratorium and grace period. While both of these facilities are time-based and offer you a time advantage in loan repayment, both serve fundamentally distinct purposes. A grace period is usually an extended time given to the borrower to clear any dues. 

However, you may be eligible for a reduction in the interest rate on the loan if you start making payments before the whole loan amount has been disbursed. 

Things to Consider Before Deciding on a Moratorium Period 

  • This grace period may seem appealing to prospective homebuyers, but they should be aware that they are still obligated to make interest payments during this time. The interest payments may be assessed on a monthly, quarterly, or one-time basis, depending on the terms of the loan. 
  • A borrower’s total EMIs is increased by the interest incurred during the moratorium period, and the resulting new EMIs are recalculated. Typically, the interest rate might climb to 10% of the entire principal and interest amount. 
  • A strong connection exists between the No EMI plan and the Moratorium Period scheme. Under the No EMI plan, the interest on the loan is covered by the developer until the time when the buyer really takes ownership of the house. When it comes to deciding how long the grace period will be, the bank and the developer engage in discussion and negotiation. Even if the overall loan amount has not changed, the developer will be responsible for paying any interest that accrues during the moratorium period. 

Is Your EMI Impacted in Any Way By a Moratorium? 

You have the option of paying the moratorium interest when it is charged, i.e., during the moratorium period. As the interest has already been paid, this circumstance will not affect your EMI.  

Another payment option that won’t affect your EMI is choosing to pay the interest due during the moratorium period following the initial EMI schedule. In this manner, your monthly instalment payment would stay the same, and the only thing that would change is the tenure of your loan. 

If you don’t use the above-mentioned options, your EMI will be affected. After that, the interest that has accumulated will have to be compensated by increasing your EMI payment.  

Is a Moratorium Right for You? 

If you’re facing financial hardships, the moratorium has the potential to provide some much-needed respite.  

However, if your present financial situation allows you, continue to make payments on the loan. Due to this, you won’t have to worry about carrying an extra interest load when the moratorium time is up. 

If you are still in the beginning stages of repaying your home loan, it is in your best interest to keep making your EMI payments. This is because interest often accounts for a larger amount of the EMI in the early phases of the loan.  

Conclusion  

The management of one’s finances is, in fact, a route that is challenging and calls for perseverance in order to navigate it successfully. Therefore, it is essential for you to exercise extreme caution when it comes to the management of your finances, and this is particularly true in the event that you have chosen to get a home loan, which is a long-term commitment. A loan moratorium might make it easier for you to lay out a repayment plan without feeling rushed. 

Decide on your future home and apply for your down payment financing at HomeCapital as soon as you’ve finished comprehending the moratorium period. By filling out the online application, you may acquire a no-interest loan for up to 50% of the down payment amount. You can repay the loan in a variety of ways that suit your requirements. 

What is An MCLR-Based Home Loan?

Posted on by HomeCapital Team

The interest rate that you pay on your home loan plays a crucial role in determining the overall repayment amount. It might affect your monthly EMI by increasing or decreasing the cost of borrowing. For this reason, it is essential to exercise caution while selecting a home loan. As long as you take out a fixed-rate house loan, your interest payments will stay the same. A floating-rate loan, on the other hand, allows your interest payments to fluctuate with the variation in the benchmark rate. Banks use the MCLR as a basis for determining floating-rate loan interest rates. 

It is thus possible to profit from a decrease in the MCLR rate within a short period of time. Let’s have a better understanding of what the MCLR stands for and how it impacts your EMI payments. 

What is MCLR? 

Marginal Cost of Funds based Lending Rate is the acronym for MCLR. It is a term used to describe the lowest possible annual percentage yield at which a banking institution would be willing to lend you money. The banks establish your interest rate based on this internal benchmark or reference rate. Formerly, banks relied on the base rate as the primary factor in determining interest rates. But in 2016, the Reserve Bank of India replaced it with MCLR.  

What Makes MCLR Different From the Base Rate? 

Before 2016, banks operated under a base rate system that determined the lowest possible interest rate at which they would lend you money. The bank’s interest rate calculations comprised the base rate in addition to a statutory spread of fifty basis points. Under the base rate system, borrowers did not reap the benefits of the predicted drop in wider market rates. Changes in the RBI’s interest rate were not effectively passed on to borrowers.  

However, even if lenders were able to pass on rate reductions to borrowers, they had to wait for a long time to reap the benefits. The base rate mechanism was changed to the MCLR in 2016 to eliminate this issue. Most importantly, the reduction in interest rates is carried on to borrowers more quickly via MCLR-based loans. 

This is all well and good, but you might be wondering how the change affects your home loan, right? Let’s find out. 

How Does the MCLR Influence Your Home Loan? 

If the MCLR rate changes, your monthly payment, as well as the length of your loan, will adjust accordingly. Your EMI or duration can go lower if the MCLR goes down. On the other hand, since MCLR-based house loans come with a reset period, it’s possible that you won’t see any immediate benefits from switching to one of these loans, provided the reset period is just around the corner. Home loans determined using the MCLR may provide clarity to the process of determining interest rates. Additionally, it makes the process of passing on the benefits of reduced interest rates to borrowers easier. 

RBI Recommendations for MCLR 

The Reserve Bank of India has established the following guidelines in relation to the MCLR system: 

  • MCLR adjustments should have no effect on fixed-rate mortgage loans. 
  • Financial institutions must disclose the MCLR rate for different repayment terms. 
  • When computing the MCLR rate, banks must consider both their deposit balances and borrowings. 
  • The floating home loan interest rate on the authorised date will stay the same up to the subsequent reset date, based on the relevant MCLR. In the repayment conditions agreement communicated with the borrower, reset dates are indicated. 

How is it Calculated? 

To begin, it is essential to remember that the following elements will determine the MCLR rate offered by each and every bank. 

  • Payback tenure premium – In order to cover the risk, banks shift the load to the borrowers by charging an amount in the form of a premium. 
  • Expenses that the bank must bear in order to run its operations 
  • Carryover deficit in the Cash Reserve Ratio (this is normally equivalent to four per cent of the funds that are deposited by clients of a bank into accounts that they have established with that bank.) 
  • Cost of funds on a marginal basis (the charges that were spent by the bank in order to get finance for the bank’s operations.) 

After figuring out all of the above factors, you will be able to calculate the MCLR rate that is used by financial institutions. RBI recommends the following formula for this purpose: 

Marginal cost of funds = (Marginal borrowing cost * 92%) + (return on the net worth * 8%) 

Conclusion 

For borrowers with fluctuating interest rates, MCLR offers some relief from the base rate. If you applied for a house loan after April 2016, there is a good chance that the interest rate on your loan is tied to the MCLR. On the other hand, the interest rate on house loans availed before April 2016 will be determined by the base rate. However, if you choose, you may change it to MCLR.  

Once you’ve mastered MCLR, it’s time to choose a new house and apply for a down payment assistance loan at HomeCapital. Apply and get an in-principle sanction in less than one minute for interest-free down payment assistance of up to fifty per cent of the property’s down payment amount. 

Complete the application form to qualify for zero-interest down payment loans of up to fifty per cent of the property’s total value. 

Factors That Will Drive The Real Estate Sector in 2022 

Posted on by HomeCapital Team

2021 was a year of recovery for the real estate sector. Following the pandemic, the sector came back with slow growth and new projects. The change in shift came due to people seeing the value of owning a home during hard times and as an investment option. In 2021, due to low-interest rates, deals from the government and great prices, there was a steady decline in unsold inventory.  

2022 too, is expected to be a good year for real estate. The demand for homes has increased as people start looking for projects to accommodate their needs. Several new trends have also emerged in the last few years, which are expected to drive sales in 2022. 

Integrated Living 

The real estate sector is catching up with the concept of integrated living. New home buyers prefer to live in areas with all modern amenities readily available. And what is better for that than integrated spaces? With amenities like hospitals, schools, multiplexes, and parks, integrated living projects will definitely see an uptick. This trend has been seeing growth for a while now.  

Home buyers want to lead a peaceful and self-sufficient life that is secure. Integrated living spaces are the solution to this desire and, as such, are one of the factors expected to drive the sector in 2022.  

New Hotspots 

The real estate sector has been making significant inroads and investments in the suburban region. Due to most spaces already occupied in major cities, this was bound to happen soon. These micro-markets have seen a continuous inflow of people from rural regions due to IT economic zones. As these places are cheaper compared to the city and have major essentials and educational institutions, they’re a hit amongst home buyers.  

These suburban regions also have good access to the main city and are a great alternative for homeowners. They’re available at lower prices compared to those inside the city while having all the facilities that make metro projects so attractive in the first place. As such, these new hotspots emerging in the sub-urban area have become trendy real estate locations for home buyers.  

PropTech in the Real Estate Sector

The real estate sector is expected to undergo significant digital transformation in 2022. With the adoption of technologies like AI, ML, and Big data, a transformation is already underway. The sector is preparing to integrate with PropTech innovations in places like marketing and back offices. These factors are expected to improve the whole real estate sector and make it more user-friendly. PropTech is also expected to remove any middlemen in the sector and contact buyers directly to the seller.  

Real Estate Sector as an Investment 

The prospect of a home as a long-term investment has become stronger than ever. 2021 saw a surge in secondary home buying as people started releasing the benefit of real estate investment. It was also a time of vulnerability in the market, and while all other assets have had problems, real estate has remained strong. This has given it an image of a secure and safe investment. Its lack of volatility and higher expected returns also make it very attractive to investors. 2022 is expected to witness an increase in real estate as an investment option.  

Interest from NRIs 

A house in the country acts as a security shield for NRIs. They can fall back on it in times of crisis. This provides them with an option of exploring business prospects or retiring in the nation. 2022 is shaping up to be a perfect year for NRIs to invest in the real estate sector. A combination of factors like the depreciating rupee, low-interest rate, great offers, and availability is sure to attract NRIs looking for a home in India.  

Lifestyle Changes 

People increasingly prefer to live in low-density areas with lower populations. The desire for peace of mind and stability has also increased. And so has the demand for individual, independent homes. Individual homes give more freedom to the homeowner when compared to an apartment, where the decisions need to be made collectively. This is why plotted developments have been seeing a steady rise for a while. This demand is expected to stay on course and entice more developers into entering this space.  

Conclusion 

The real estate sector as a whole remains optimistic for 2022. And why not? When everything was coming down due to the pandemic, real estate remained strong. And now it is expected to show strong growth in the coming years. In fact, by 2025, it is expected to contribute 13% to the GDP as per NAREDCO and Asia Pacific Real Estate Association (APREA). Going by recent trends, the future of real estate is quite promising. And the integration of technology can propel this sector to even greater heights.  

Are you a prospective homebuyer? Are you short on the down payment required for your dream home? If yes, then visit HomeCapital and get up to 50% of your down payment as a loan. Your HomeCapital Down Payment Assistance is just a few clicks away with quick online approval, and hassle-free and fast disbursal of down payment.  

What Do You Need To Know About Home Loan Foreclosure? 

Posted on by HomeCapital Team

Home loan foreclosure, as the name suggests, is the method of repayment of remaining loans in a lump sum. By doing this, instead of paying the EMIs, the borrower gets to close the loan and save on interest. Previously such foreclosures charged a payment of 5% of outstanding principal. However, from April 2012, according to RBI circulars DBOD.No.Dir.BC.107/13.03.00/2011-12 dated June 5, 

2012 and DBOD.Dir.BC.No.110/13.03.00/2013-14 dated May 7, 2014, the central bank has mandated all banks to stop charging this fee for home loans with a floating rate of interest. Further, it also states that banks shall not charge foreclosure charges or pre-payment penalties on any floating rate loan products other than business loans to individual borrowers, with or without co-borrowers. If you’re also considering home loan foreclosure, take a look at the factors to consider before you go through with it.  

Factors to Consider for Home Loan Foreclosure 

Tax Benefits 

You must know this by now, but a home loan allows the borrower to claim tax deductions under Section 24 and 80 C. This is based on the principal and interest repayment. Home loan foreclosure means that you will no longer be able to avail these tax deductions. So, before you close your loan, see if you can claim tax deductions under other acts. If you can, then you can close your loan with ease of mind. If not, then run some numbers to find exactly how much you’ll lose out on tax deductions and whether it’ll be a good move or not. 

Equated Monthly Instalments 

Your Equated monthly instalments (EMIs) are generally based on your monthly income. However, you can ask your bank to increase your EMI and lower the tenure. A higher EMI means lesser net income. And disposable income is essential for everyday expenses and investments to build wealth. For this reason, always ensure that your monthly EMI doesn’t exceed 40% of your budget. A smaller EMI will mean that you can save a lot more. But if you find that EMIs eat up a significant portion of your monthly income, barely leaving your financial room, it may be better to go for a home loan foreclosure.  

Future Expenses 

If you’re going through with a home loan foreclosure, then you might be thinking of dipping into your other savings. Before you do, list out your short-term and long-term goals and expenses. Make sure that you have enough for your retirement, healthcare, emergency, and children’s education. Only consider home loan foreclosure if you have enough savings to not disturb these goals.  

Time of Foreclosure 

Do the maths. Sometimes it may be more beneficial to not do a home loan foreclosure, for example, at the near end of the tenure. At such times the savings made from the foreclosure will be small, but it will certainly erode your savings. It may be possible that investing those savings instead of using them for foreclosure will give a higher return. Planning is also vital. You need to make a clear-cut plan for the foreclosure and not just haphazardly jump into the fray. 

How to Foreclose Your Home Loan? 

Inform the Lender 

Your lender will have a large number of loans running at once. Though they will have your loan in the system, it’d be better to make a formal announcement for home loan foreclosure. This way, you’ll spare yourself from any future problems that may arise due to human error.  

Do the Required Documentation 

Make sure that your documentation is in order. Include the original loan agreement and all previous EMI receipts. You don’t want to dash in the middle of the process. Having them in advance will speed up the process.  

Asses Payments 

Home loan foreclosure is a layered process. Verification of payment and documents is done several times. It is advised to be present physically at these verifications to smoothen out any problems if they arise.  

No Objection Certificate (NOC) 

You need a no-objection certificate for home loan foreclosure. It will be issued by your bank and will serve as insurance against any future claims of non-repayment from the bank.  

Remove Lien 

An optional step. If you have a lien that prevents you from selling the house, terminate it as your loan is not paid. This is a lengthy step and can take up to 10 days.  

Retrieve Security Checks 

Collect your post-dated security cheques if you have submitted them to your lender. The better option is to have everything online in the form of an Electronic Clearing Service (ECS), which can be cancelled with a few clicks.  

Get an Encumbrance Certificate  

An Encumbrance Certificate (EC) states all the financial transactions that are related to your property. This basically says that your property is free from liability. Get it after your home loan foreclosure.  

Retrieve Documents 

Once your home loan foreclosure application is submitted, retrieve your documents submitted during the loan application. Especially property documents submitted as collateral. 

Update Credit Report 

Loan repayment can positively impact your credit history. Once you do a home loan foreclosure, don’t forget to update your credit report for the sake of future benefits.  

Conclusion 

Home loan foreclosure can be lucrative as you will be free from interests and long-term obligations. However, keep an open view regarding it and properly assess your situation before proceeding with it. It’d be smart to plan the whole process and keep these points in mind when proceeding with it.  

If you ever feel in need of another home loan for your second home in the future, approach your lender. And also HomeCapital will help you get up to 50% of your down payment completely interest-free.  

How does Buying or Selling a Home Help the Economy and Your Community?

Posted on by HomeCapital Team

When buying or selling a home, most families only tend to consider the immediate impact it has on their lives. However, the real estate transactions can have a big impact on the economy and the surrounding community as well.

You may ask, how is it possible for a single house to have such a significant impact on the economy? There are numerous industries and businesses involved in selling a home, to begin with. Let’s have a look at them.

Planning and Construction of a Home

There are 4 key phases in which the housing market contributes to the economy:

  • During the planning and land development
  • During the actual building of the house
  • At the moment of sale or selling a home
  • Upon moving in

At different points during the process, the involvement of a large number of experts is required. Some of which include contractors, specialists, attorneys, municipal and town authorities, and so on. These experts play a crucial part in the process of having new houses completed. Helping out with real estate transactions at varying levels, for both newly constructed homes and existing ones, is a lucrative line of work for several professionals.

Buying or Selling a Home

In addition to meeting your individual requirements, buying or selling a home makes a lasting mark on the community. This is because there are multiple parties involved in each step of the process. These mostly include multiple attorneys, town and municipal authorities, bankers, mortgage officers, and specialists from title firm employees.

Every single person you collaborate with, has their very own team of specialists working behind the scenes. It may be your go-to real estate agents, architects who designed the house, and the construction workers. This demonstrates how your decisions to purchase or sell a home can affect the surrounding neighbourhood.

Home Maintenance and Renovation

A whole new category of economic activity has been created only because houses need a lot of care and maintenance. There will be a need for gardeners, builders, plumbers and electricians. In addition, one of the most important pillars of economic activity is home renovation.

Contractors for house improvements will need to drive trucks, just as gardeners and construction workers do. This will require them to spend money on fuel and further stimulate the economy. People who make improvements to their houses spend money on raw materials. This greatly helps the economy, for instance, the lumber and metal industries. A diverse selection of businesses helps to maintain a healthy local economy while also highlighting a community’s distinct characteristics.

How does Selling a Home Impact the Economy and the Local Community

While it may seem that a real estate transaction is just beneficial to those involved in the buying or selling of a home, it has far-reaching impacts on those in the surrounding community. This is particularly true in locations with a large movement of population. Since the local government takes note when there is a need for something and makes an effort to ensure that it builds up in a way that will benefit the majority of inhabitants moving into the region. This makes it possible for businesses to rebound and fill vacant storefronts.

Several metropolitan districts have undergone major transformations as a direct result of new homeowners moving into the region. People can build stores and other essential infrastructure, such as schools and hospitals, thanks to the development of properties. This results in the employment of more people and contributes to the expansion and improvement of the community as a whole as well as its economic conditions. In fact, earlier there were many localities which had certain neighbourhoods, where nobody ever wanted to purchase a property. Today, however, these are the very same places that are the most attractive and desirable. In a nutshell, you might as well be able to play a role in revitalising a neighbourhood and transforming it into one of the most sought-after locations to reside in a city or a town.

Wrapping Up

When people buy or sell a home, they have a major impact on the economy and the communities in which they live. If you’re looking to buy your dream home, check out HomeCapital.

HomeCapital is the first down payment loan provider in India, which makes it easier for you to buy a home by offering interest-free credit up to 50% of the home down payment amount. You can use the interest-free loan towards paying of stamp duty payments*, payments on possession and any other payments towards purchasing your home.

*Only applicable for projects in Maharashtra

Is it Possible to Transfer a Home Loan Multiple Times?

Posted on by HomeCapital Team

When it comes to a home loan, everyone wants to get the best possible deal. Even a slight decrease in the interest rate can translate to a large sum over time. For instance, for a home loan of Rs 50 lakh at 8% over 20 years, you’d have to pay almost the same amount in interest. However, if the interest rate is decreased by just 0.5%, the payable interest would be Rs 46.5 lakh. That’s a saving of Rs 3.5 lakh. If you’ve already taken a home loan and found another lender with better rates, rates, then you can transfer your home loan over to them. This enables you to save costs on interest.

What is a Home Loan Transfer?

High-interest rates have a direct impact on the finances of a person. Many times, these interest rates coupled with long repayment periods can result in exorbitant interest outflows. Couple this with rising expenditure and inflation, and this can be a real problem. Home loan transfer is the facility that lets a borrower shift to another lender with lower interest rates. By shifting to another lender, borrowers can end up saving a significant amount in payable interest. After you shift the loan, then you’ll need to pay the remaining loan to the next lender. Be aware, though, that a home loan transfer involves some additional fees. Plus, it can be quite a cumbersome and tedious procedure.

Things to Consider Before a Home Loan Transfer

Negotiate Interest Rates

Before you consider shifting to another lender, do negotiate with your current one. While interest rates are generally fixed, there is a chance for negotiation sometimes. Negotiation for interest rates should ideally be done before taking the loan. But you can also do so during the duration of repayment. If you’ve been a loyal customer to your lender with a good history, your request may be approved after checking through your loan payment capacity and credit history.

Credit Score

You should always strive to have a good credit score. It indicates your fiscal discipline, and many lenders check it before approving a loan. Even for a home loan transfer, it is an essential component. Your new lender will likely check it before approving your request. Suppose you’ve been inconsistent with your repayment. This means chances of your balance transfer request will decrease.

Additional Charges

You won’t be able to transfer your home loan just like that. Additional changes in the form of processing fees, administration charges, inspection fees, and others will be levied. There will be some charges which will be levied by your new lender too. Before you jump, the ships consider whether you will come out in overall profit due to the home loan transfer.

Terms and Conditions

After you’ve selected a new lender for your home loan transfer, ensure that you properly go through the terms and conditions. Do this to properly understand the functioning of your new lender and avoid any potential hidden charges. Make sure that you understand what it is that differentiates your new lender compared to your previous one.

Tenure

If you’re nearing the tenure of your loan repayment period, then a home loan transfer is not advised. This is because of the additional fees that will be incurred. When you’re almost at the end of the repayment period, the additional charges are usually greater than the interest left on your loan. In such a case, a home loan transfer will only result in increased money outflow.

Can You Transfer a Home Loan Multiple Times?

In short, yes. It is perfectly okay to transfer your home loan multiple times if you so wish. Though there are several reasons why you should be cautious about it in the first place:

  • You will have to pay additional charges each time you change lenders.
  • By doing this multiple times, you can potentially incur greater costs in additional charges. Thus, rendering the purpose behind home loan balance transfer useless.
  • The process itself is time-consuming and requires a lot of documentation and effort.
  • There’s also the fact that a home loan balance transfer makes less sense as you go deeper in your tenure. Changing the lenders at such a late stage simply doesn’t make sense.

So, while it is certainly possible to change your lenders multiple times, it only makes sense if you make an overall profit. Before you shift from lender to lender, ensure that your savings are greater than your costs.

Conclusion

A home loan transfer is a great way to reduce your interest burden. Home loans are long-term, large capital loans. This means that the total interest on them is generally very large, almost equal to the principal itself. For such loans, even a small difference means significant savings. Before you go through it, though, do consider the charges and the effort that you’ll spend on the process itself.

And while a balance transfer is good, remember to opt for your down payment assistance from HomeCapital when you initially take out your home loan. With no interest rate and easy processing, the platform adds provides up to 50% assistance to your savings towards your home down payment.

What is a Land Registration ID, and What are the Documents Involved?

Posted on by HomeCapital Team

Real estate investment is a highly lucrative prospect for many businessmen. However, it comes with a prerequisite set of responsibilities and legal compliances that a landowner is expected to adhere to. To help potential land owners comply with the legalities of owning land, here, we’ll explain a bit about what a land registration ID is and what documents are involved in the process.

A land registration ID is an identification number that is used to identify a particular plot of land. It is a part of the record of rights, register of land, disputed cash register, crop inspection register, etc. This ID is also used to give geological information that is related to the land to which it is assigned. This includes things like the type of soil in the land and the size of the plot, agricultural, irrigation, and crop data. Hence, it is important for every landowner.

How to Apply for a Land Registration ID?

Most of the processes that need to be done for the successful application for a land registration ID can be done online. The only aspect that needs to be done offline is the submission of documents. This needs to be done in person at the concerned office. Here are the steps that need to be taken for online registration of land ID.

  • Find out the circle rate of the area under which your land comes in. This is the first step toward land registration ID. The circle rate depends on a number of factors, such as the purpose of the land and its type.
  • Calculate the stamp duty and the registration fee to be paid for your land. Find out the rates online for your state and arrange the money in advance.
  • Go to the online website of the land registration ID for your state. Pay the stamp duty and the registration fee online on the website itself.
  • Get an appointment with the sub-registrar office for a consultation. This is an essential part. Make sure that you get a consultation with the sub-registrar of the area in which your land is.
  • Be prepared with witnesses. In addition to the buyer and the seller, two additional witnesses are needed to finish the registration process. These witnesses need to sign the documents that are to be submitted to the sub-registrar’s office.
  • Finally, visit the sub-registrar’s office on the date of appointment. Submit the property documents to complete the process for registration. You will now be allotted a land registration ID for your land.

List of Documents Needed for Land Registration ID

The land registration process is initiated online, while document submission is made offline in the sub-registrar’s office. For the online part, an individual is required to purchase e-stamp papers and then pay the registration charges online. Some important information to be given during the online process include:

  • Description of the land and its data, such as pin code and area.
  • Nature of the property, i.e., whether the land is to be used for industrial, commercial, or residential purposes.
  • The mode of ownership, whether it will be a purchase, gift, or lease.
  • Demographic detail of the owner of the land like name, occupation, and age.
  • Proof of property document like the title deed.

Document list to be submitted directly to the office of the sub-registrar office of the area under which the land is:

  • A non-judicial stamp needs to be submitted. It must mention the total value that the plot of land entails.
  • E-stamp paper that bears the same value as stamp duty.
  • A copy of the PAN card.
  • Proof of receipt of payment of the online land registration ID and the undertaking.
  • ID proof in original of all the parties that are included in the process. This includes the seller, buyer, and both the witnesses.
  • 2 passport-sized photos are to be pasted on every copy of the document on the side of both the buyer and the seller.
  • Receipt of TDS of the land if its total worth is in excess of Rs 50 Lakhs. This is not needed for lands with a value below Rs 50 Lakhs.
  • In case the property is a house property, its documented history of ownership is necessary.

Conclusion

Understanding the concept of land registration ID is vital to fulfilling all duties that come as a landowner. It is important to stay fully informed of all the documentation that is involved during the buying and selling of land property. It is equally important to stay up to date with all the updates regarding land rules.

If you’re also a hopeful homeowner or landowner, it might be worth the time to check out HomeCapital. HomeCapital is India’s first down payment loan provider, giving out up to 50% of the down payment value as a loan. The best part is that it is completely interest-free and unsecured.

Online vs Offline Home Loans: A Detailed Comparison

Posted on by HomeCapital Team

In today’s technology-driven world, we can shop, invest, host business meetings, etc., from anywhere around the world as long as we have an internet connection. These technological advancements of the 21st century have also seeped into the home loan process. An individual can apply for a home loan from the comfort of their home through an online application process. However, for people not well versed with the internet or those who don’t have access to it, the offline home loan process is still available.

To decide between online and offline home loans, you need to be aware of each of their merits and demerits. To help you in this decision, this article compares the features of online and offline home loans in detail.

Comparison criteria

We will discuss various comparison criteria one by one to decide which is better offline
loans or online loans.

Eligibility

For online home loans, your eligibility can be easily determined from the home loan provider’s website, where they provide tools like a home loan eligibility calculator. In this process, there is no need to talk to a loan officer or visit the loan provider’s office. All that is required is to provide the financial data that is needed for the eligibility calculations. Hence, it is more convenient. In the traditional offline loan process, your eligibility for home loan is determined by the loan officer after discussion and evaluation. This can be a time-consuming process and requires a bank visit.

Documents

In the case of online home loans, the website lists the documents that are required for the home loan. These documents can be easily submitted digitally when applying for online home loans. The offline home loan procedure requires the physical submission of the documents to the loan provider’s office. There is a risk factor involved in this, as important documents may get misplaced in the offline home loan procedure.

Processing

Online home loan applications are stored digitally and promptly responded to. The processing wait time is much less, and there is no chance of misplacement of loan applications in the online procedure. Offline home loan processing can take longer as the documents have to be physically verified and scrutinized. The processing can involve an application form check, eligibility calculation, credit score check, etc., which has to be done manually and can be quite a hassle. Long queues are also the adverse reality of offline home loans as home loan providers see a huge load of applications every day.

Charges

The charges involved in the online home loan procedure such as legal and technical fees, processing fees, and GST charges are mentioned on the website. No other additional charges are imposed. For offline home loans, a commission of agents may be imposed as additional charges in some cases.

Product Comparison

Home loans are a big deal because they deal with a large sum of money. To make sure that you are making the right decision, comparing different home plans is essential. This allows you to see the interest rates, processing fees, and other such aspects. Comparison between home loan products is easier online because information and brochures are easily available on the website of the loan provider/bank. In the case of traditional offline home loans, the marketing material from each bank’s branch or lender will need to be collected and then compared.

Convenience

The online home loan process is much more convenient because it saves time, it can be done from anywhere, and there are lower security risks involved. Online home loans can also be easily kept track of. However, it can be hard for people who are not tech-savvy to file for online home loans. In the case of offline home loans, the process is quite time-consuming. Over a telephonic conversation, an appointment has to be made with the bank, and you need to visit the office during the specified time. This can sometimes take up an entire day. There are also security risks of important documents such as identity proofs getting lost during transit or the application process. Keeping track of traditional home loans can involve burdensome bank visits or long phone calls. Everyone, including those who are not tech-
savvy, can file for offline bank loans.

Conclusion

In conclusion, whether an individual chooses an online or offline home loan depends on their needs and demands. The growing popularity of digital services and advantages will increase the prevalence of paperless online home loans in the future. However, offline home loans are also not going to disappear anytime soon and will be available for people who need face-to-face service with their home loan provider. If you are looking for assistance with your home down payment, HomeCapital has your
back. We are the creators of the first home down payment assistance program in India. With the help of our assistance program, customers can get 50% of the down payment as an interest-free loan to buy their dream home.

Why is it important to have a spacious home for a healthy lifestyle?

Posted on by HomeCapital Team

A home is a place that provides you and your family a safe space to live and perform your daily activities. Thus, ideally, it should be designed in a way that ensures maximum comfort for both you and your family members. Spacious homes, for instance, often impact your mental as well as physical health positively. This is because they offer personal space and privacy, the primary factors necessary to achieve peace and harmony.

With the emergence of the pandemic, most people had a dramatic shift in their lives and had to spend most of their time at home which ultimately turned into their school and workplace environment. Thus, it has resulted in an increased need for larger and more spacious homes. We have prepared a list of the advantages that spacious homes have to offer. Keep reading to know more.

How do spacious homes enhance your living conditions?

Air circulation and sunlight

A spacious house typically features open spaces that are brightly lit with the help of broad windows. Small and cramped houses, on the other hand, have narrow corridors and rooms that do not have proper air circulation or sunlight. The latter can severely impact your mental as well as physical health due to low-quality indoor air. This leads to a greater risk of infectious and air-borne diseases. Spacious houses, on the contrary, have ample space for proper air circulation and ventilation that effectively decrease germ concentration in the air. Thus, a spacious home leads to a more healthy, cozy, and positive environment for your whole family.

Spacious personal space

For most homebuyers, a home is so much more than a roof over their heads. A spacious home enables every individual in your family to have a personal space where they can perform their respective work without worries. A large home provides you with the option of combining functionality along with aesthetics which in turn leads to an ideal living environment. At the end of the day, who wouldn’t prefer to enjoy their ‘me time’ in their private spaces?

Ideal home office

As already stated before, due to the impact of the pandemic on various industries, several people started to work from home. This is indeed quite an advantageous situation as the respective individuals will be able to work in a quiet, and comfortable environment. A spacious home allows you to set up your own personal office. You can be at ease and work at your own pace in a peacefully stimulating environment. Moreover, a personal workspace at home helps in cost reduction as well. Besides this, the latest studies and research have shown that an ideal home environment leads to increased productivity.

A clean and uncluttered environment

The best part about living in a spacious home is the fact that you can allocate a place for anything and everything including storage. Moreover, you can customize storage spaces as per each family member’s needs. This helps avoid cramming multiple articles into the available space. Thus, instead of going through a pile of overflowing miscellaneous belongings in shared cupboards, you can find your required item with ease in a clean and decluttered environment.

Perform health-based activities

Do you wish to improve your overall health and well-being? With the help of spacious homes, you can achieve this with ease. Spacious homes allow you to create spaces for health-based activities. For instance, you can set up a small gymnasium for working out. This way, you don’t need to commute to the gymnasium or other places for long distances yet lead a healthy lifestyle. Moreover, spacious homes have a tranquil and peaceful environment that is suitable for activities such as meditation and yoga. Therefore, you can set up rooms for performing these activities. Spacious homes allow people to completely focus on their health without having to worry about finding clutter-free rooms to exercise.

Spacious play area for kids

With the help of spacious homes, you can set up a particular room as a playroom for your kids. This will provide a safe and secure environment for your kids to play in. Kids can experiment and enjoy themselves while the elders can monitor their activities in order to avoid any accidents, injuries, or damages at home. If you are a family with kids, spacious homes have many added advantages.

Conclusion

If you think of purchasing a new home for your family or loved ones, make sure to select the one that is designed in a way that ensures maximum comfort and well-being. Spacious homes help achieve both these goals as they have many advantages ranging from personal spaces, playrooms for kids, a peaceful environment for meditation and yoga, and many more. If you want to live a happy and healthy life with your loved ones, spacious home is a must.

Luxury Homes- Next Level Living in Bangalore

Posted on by HomeCapital Team

Bangalore is known as the ‘Silicon Valley of India’. From being known as the garden city of India to being called the cradle of the IT revolution. Bengaluru has grown by leaps and bounds. Today, this southern city in India has also become the choicest luxury housing destination for high-net-worth individuals (HNIs) and non-resident individuals (NRIs). We now have a plentiful supply of luxury homes in Bangalore. The majority of these homes are available for purchase by people who don’t want to compromise on style and opulence. Buyers are usually looking for a home that will last a lifetime, and want to feel like they’re living in one of the best locations in the world. 

The thriving Bangalore real estate luxury market

Bangalore is the city of dreams for most millennials. Whether an engineer or a marketer, everybody wants to try their luck to explore their new skills and their unique self. The Silicon Valley of India is well known for its perfect weather. So, the Bangalore real estate market has a high demand for properties and the demand is increasing day by day. 

The real estate boom in the country is not limited to tier-1 cities alone. According to research, Bengaluru is one of India’s top five real estate markets and its upper-middle-class population is expanding by 7.5% every year. It has a large number of small towns that are growing and offers the perfect opportunity for prospective buyers to invest in premium boutique homes.

Bangalore offers a host of affluent neighborhoods such as HSR Layout, Koramangala, JP Nagar, BTM Layout, and Indiranagar that are home to sprawling luxury homes. Indian residents also demand more premium houses with better amenities like clubhouses, gyms, swimming pools, and jogging tracks – all usually at a price tag of Rs 2 crore or more.

A new wave of luxury homes

Bangalore is the new metropolitan city of India like no other. The emerging wealthy population and sky-high property prices in the country’s financial capital have given rise to a new category of luxury living. The long list of residential projects offers residents the opportunity to live in luxury homes and buy premium boutique homes, complete with an end-to-end lifestyle experience. From spacious apartments to luxurious penthouses. Not just that but we have seen a surge in HNI or high net income people and NRIs or non-resident Indians who are looking to invest there as they are confident about the economic growth in India

There is a huge increase in luxury housing projects launched by builders in Bangalore. These are not just any regular homes but some of the most luxurious houses that you can ever wish for. The lifestyle has become very lavish, so, naturally, they will want their homes to look similar as well. Bangalore is now one of the most sought-after destinations for India’s most affluent population, thanks to its booming economy and varied price points.

Many of the builders who create boutique luxury homes are highly specialized and cater only to this particular market segment. They find this format a unique business proposition since it is possible to construct and deliver boutique luxury projects within six to eight months, while volume luxury projects take much longer to complete. Other players deploy luxury homes as a lucrative side-line in their portfolio while they continue to focus on high-volume mid-income housing.

Conclusion

Many people have moved to Bangalore from other parts of the country, mainly because they are getting better jobs and a better lifestyle. The culture of renting apartments is also very prominent among people here. This year, luxury housing in Bangalore has seen huge demand, and prime properties get sold in no time. Experts say that this could be because the infrastructure of the city is getting developed rapidly.

India’s much-talked-about thriving real estate industry is showing no signs of slowing down. With more than 300,000 homes being sold in the past six years, affordable housing has become a hot topic. Luxury homes are the next level of living in India and are only going to get better with time. The real estate industry has given people a chance to live their dream life and for many, this is what it means to live the good life!