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Things to keep in mind before buying a house if you have kids

Posted on by HomeCapital Team

“I will buy a house someday” is one of the grandest aspirations in many people’s lives. And when someone has kids and is looking for a house, the house-hunting process just gets deeper or more specific. When kids are born, they become the top priority in life and so in every aspect. Let us have a look at how to narrow down your search for a house to move in with your kids.

The house-hunting process is mainly in two phases, one is finalizing the location and the other is the checklist for inside the complex/ standalone building.

1. Location

This is the most important aspect to begin the house-hunting process. There are more activities outside the house than inside, especially when you are moving with your kids.

i. Daycare centre

If you have kids less than 5-6 years, you need to ensure that a daycare center is available in the vicinity. Some large complexes include this facility in their premises.

ii. Schools/ colleges

Whether your kids are in school or college, it is essential to check whether the locality has reputed schools and colleges.

iii. Traffic density

This aspect needs to be checked if you have small or young kids. High traffic density may be a bit of concern for the traffic flow as well as noise pollutions. In this case, check for the apartments/houses in the by lanes.

iv. Kids play area/ garden/ park

It is about engaging kids in various activities to keep them mentally and physically healthy. So, it is best to check out a kids play area or kids zone or garden with lush green grass or a park to play in open.

v. Sports club/ health club

This is yet another essential thing immaterial of the age of your kids. A well-equipped sports club in your vicinity will possibly create an interest in sports for your little one. For grown-up kids, a health club will be useful for routine fitness and staying energetic.

vi. How safe is your locality

This is the most important aspect to check whether the locality you plan to buy a house in is crime-free or with a minimal crime rate.

2. Inside the apartment complex/ house

Once you have finalized your location, it is half the job done. There are a few but important aspects mentioned below which you need to check before you close in for your house deal.

3. Check for a young population

This is beneficial in the upbringing of the kids as they will find friends of the same age or with small age differences. They can spend time together and if you find a classmate of your kid in the same building or the complex he or she may have a lifelong friend. Moving into an apartment with a young population can turn out to be a good experience, new friends of the same generation to hang out with.

4. Security and surveillance

This is the most important aspect when you plan to move into a house or apartment with your kids. Ensure that the complex or building is secured with reputed manned security as well as 24/7 high definition CCTV surveillance cameras. This will help you to track your child’s location.

5. In house safety

It will be in your best interest if you plan the interior designing of your house considering the highest kid safety standards. However, with regard to the house provided by the developer, you must check that the windows have been installed with safety grills and the balcony grill must be around 4-4.5 ft tall.

6. Children fun area and other leisure activities

This has already been mentioned in the location section. However, some apartment complexes do provide a kids zone area and even have dedicated leisure activities areas for kids.

7. Speed control for cars

If you are planning to move into an apartment complex then check whether the developer has installed an adequate number of speed breakers where there is greater movement of residents. In case, you are moving to a standalone building, you can check the same in your neighbourhood.

Making your kids house hunting partner

This may sound different but it is exciting. Once you have finalized your location and now narrowed it down to the last 3-4 choices, it will be an ideal family move to involve your kids. Let them have a look and possibly be active in making a choice. You have now narrowed it down to your last few kid-friendly options and involving your little ones, will leave them with a happy and lifelong memory.


So, narrowing it down to your dream kids-friendly house may feel like a long process. But thinking about your kids and also your childhood for the things you enjoyed and missed, it may be an exciting process. It may be an exhaustive process but for an exciting and happy journey of life. 

Impact of increasing electric vehicles demand on real estate

Posted on by HomeCapital Team

The number of electric vehicles (EV) on the road is increasing by the day and companies providing charging stations are seeing an increase in demand from real estate developers as well. What was once a niche market, EVs have gone mainstream with many people purchasing these cars due to their low maintenance costs over time compared to combustion engine-powered counterparts such as SUVs or sedans.

The government is currently working on plans to install electric vehicle charging stations in order to increase the number of green cars that use gas-powered alternatives. The idea has been gaining momentum as more companies start partnering up with builders for projects still being planned, but demand from housing societies and old colonies is also rising because they’re willing to invest in these types of infrastructure investments now.

The electric vehicle (EV) market has been growing due to government push

The demand for electric vehicles is on the rise. This can be attributed, in part at least, because more people now want to move towards environmentally friendly modes of transportation-which we see from housing societies and RWA’s alike, so is the opinion of many EV charging startups.

While the need to increase EV charging infrastructure is clear, it’s not an easy task. The major factor that affordability must meet for residents associations will make or break this project in many ways and the startups have been working on different models so their needs can be met as best possible.

Market overview

The Indian Electric Vehicle Market was valued at USD 5 billion in 2020, and it is expected to reach USD 47 billion by 2026, registering a CAGR of above 44% during the forecast period (2021-2026). Companies are installing electric vehicle (EV) friendly infrastructure by providing charging stations in apartments and residential areas with their partnership with the government. They have planned on creating 10 thousand of these across different complexes as well.

Developers have tied up with partners in Bengaluru, Gurgaon, and Pune. The residents are ready to free up to 10% of total parking space for EV charging stations as cars remain parked at home for a long period of time and hence, all the charging can take place at home.

The share of EVs is expected to reach 8-10% in two-wheelers and up to 30% in three-wheelers by 2025. The penetration level in cars and trucks is expected to remain low in the meanwhile.

Kalpataru, a real estate developer in India is now offering EV charging-enabled parking at its upcoming projects. This facility was previously provided for some of Kalpataru’s past developments as well.

Electric mobility, being the future of personal transportation, EV adoption is expected to skyrocket in the coming years. Hence, it has become vital to building EV-friendly ecosystems at homes and commercial places.

The government has taken steps to reduce India’s reliance on crude oil imports and curb vehicular pollution by incentives for auto manufacturers who produce electric vehicles.

To conclude, many developers and even RWAs are demanding EV-friendly infrastructure in cities like Mumbai, Pune, Bengaluru, Hyderabad, and Delhi-NCR with mainly the current negotiations being on a model that ensures zero capital expenditure by builders and housing societies.

Impact of your lifestyle on your home buying decision

Posted on by HomeCapital Team

From the thought of buying a new home through the entire planning to the homebuying decision, it takes months or even years. Financial arrangement plays a big role but lifestyle is the governing factor. Lifestyle is one big ocean of human behavior. Generally, homebuying decision begins with narrowing down to a budget. However, if you list down your lifestyle to the minutest detail, you will realize that your home buying decision will be smooth and easy. All we have to do is to think about the way we lead our life right from the moment we get up till we go to bed.

Lifestyle consists of several aspects like health consciousness, comfort and convenience, quality, trend and style, and security & privacy. Let us have a look at these aspects in brief and it will enable you to make a sound decision to buy your dream home.

1. Health consciousness

If you are a fitness freak or a sports lover, you would surely like to have a gymnasium or tennis court/swimming pool/squash court in your vicinity or ideally in your residential premises. In a large apartment complex or a township, amenities like a swimming pool, gymnasium, yoga room, badminton/ tennis/squash court, jogging track, landscaped garden, clubhouse, etc. are made available. In smaller complexes, you may not have all the amenities but the essential ones like gymnasium and yoga room are available. Nowadays, developers provide a gymnasium in a standalone building as well.

2. Comfort and convenience

i. Spaciousness or size of the apartment

If you are used to a large size apartment or you are having an evolving family then you may consider having a larger home than your present one. It is advisable to have a look at the flat or home by yourself once you are happy with its pictures seen online or a brochure.

ii. Ventilation and natural illumination

This may not be necessarily a part of someone’s lifestyle but while buying a new home this is a ‘must have’ aspect from a health point of view. Natural light not only will save your electricity but also provide positive energy and make you feel better. A well-ventilated home will provide you with the much-required fresh air.  

iii. Water conservation and energy efficient systems

Water conservation depends on the chosen locality. Some regions of the city do not have a 24/7 water supply or enough water supply or storage. In these cases, you must choose a home where water conservation is done through rainwater harvesting and/or water treatment plants are installed. Some urban areas are well equipped with overhead or underground water tanks which can store and supply adequate water throughout the day.

iv. Daily/weekly domestic shopping

If you are used to shopping for your groceries, fruits and vegetables, stationery, and household products, self-grooming, etc in your vicinity then it is worth checking an apartment in a complex or a township. In some places, even a standalone building has these shops in the ground floor front space. Alternatively, you need to find a property close to these shops these should be available at walking distance.

3. Quality

This is that aspect one should never compromise. This is about the quality of construction. It is also about the basic interior which a developer provides like tiling, doors, paint, kitchen platforms, bathroom fittings, etc. Even if you are having all the amenities at a good price, the quality of the home cannot be compromised as you will be living there. The quality check can be done by researching the developer and visiting his/her completed projects. You can also discuss with the buyers of those projects.

4. Trend & style

If you are a trendy or a stylish person with a taste of suave and sophisticated design both indoor and outdoor then choose a project and an apartment with high aesthetic value. On the exterior, a building having beautiful elevation, landscaped garden, seating area, waiting for lounge can be considered. While at the interior, an apartment with more open spaces, a spacious deck, an office room with required electrical and wifi connections, and a fully equipped bathroom is another one.

5. Security & privacy

Manned security and 24/7 CCTV surveillance is the need of the hour and this aspect also cannot be compromised.

If you are a quiet person, then a well-researched apartment in a standalone building in a by-lane would be an ideal choice. In an apartment complex, there are many residents using the amenities. If you are used to crowded places or living with more people, then a township lifestyle may suit you.

6. Property maintenance

The more amenities you choose as per your lifestyle, the higher is the property maintenance value. In a township or an apartment complex, the monthly maintenance is higher than in a standalone building. However, if your lifestyle demands and you find a budget-friendly home in a township then go ahead. Alternatively, an apartment in a standalone building in a well-facilitated locality is also a good choice.

On a concluding note, once you have a baseline budget and a list of your lifestyle aspects, you can easily differentiate between need and want. This will help you in streamlining your budget and zero in on your dream home. 

5 Things you need to get a pre-approved homeownership loan fast

Posted on by HomeCapital Team

A pre-approved home loan is sanctioned without having to submit the property details or before finalizing the property. Your pre-approved loan amount is based on your creditworthiness, your income, and your current financial position.

Traditionally, when a bank or lender gives you money to purchase a home, you need to show the documents that prove the existence of the property. The value of the property is calculated by the bank or the lender and then accordingly you get the loan.

Your pre-approved loan solely depends on the proof of your ability to pay your loan back over a period deemed fit by the bank or the lender. Nonetheless, a collection of documents and proofs is needed to set the ball rolling and then enable the ball to reach its destination.

How to accelerate your pre-approved loan disbursement

Here are the things that can speed up your pre-approved loan disbursement.

1. Make sure you have a healthy credit history

Your credit history is particularly important when you are being considered for a pre-approved loan for purchasing a home. Your credit history tells the lender how dependable and consistent you are when paying back the money you owe.

Have you been using a credit card frequently? Have you been paying your dues on time or does your bank remind you repeatedly before you make the payments? Have you taken a loan previously? Did you pay it back, along with the interest, on time?

If yes, there is no need to worry about your credit history.

Considering how important your credit history is, it is crucial that you pay all your dues on time and maintain a healthy credit history.

Even if you think that there may be some anomalies or you haven’t been consistent when paying your dues, make sure all the dues are cleared over the past six months.

You may not agree with your credit report and if you think you can rightfully raise a dispute, certainly do that so that by the time you apply for a pre-approved loan to purchase a home, your credit history doesn’t become a roadblock.

2. The age factor

The age factor depends on how much money you plan to loan and how much amount per month you are ready to pay back. The more money you take, the lower is your monthly payment amount, the more years you are going to need to return the full loan.

For example, if you are in your early 30s it is easier for a bank or a lender to give you a loan because you will be able to return it in the next 30 or so years.

3. Your monthly income

Your monthly income shows your capacity to pay back the loan along with the interest. When calculating the amount of loan that you intend to take, make sure that you can comfortably pay it back in monthly installments with your current salary or monthly income.

If you get a salary, you will be asked to furnish your employment proof attested by your company or employer. If you have your own business, you will need to submit documents that show that you are the owner of the business or the partner of the business.

4. Bank statement

You must have some cash reserves to take care of the collateral issues. The lender may ask you to submit your bank statement of the past six months and any property papers that you may have. The valuable assets must legally belong to you.

Factors to hasten the disbursement of your pre-approved loan

Here are some factors that can hasten the disbursement of your pre-approved loan so that you can easily purchase the home of your dreams.

1. Faster disbursal

Most of the formalities and verifications are already done in the early stage. The lender just needs the finalized property documents. As soon as your lender validates your property documents, your loan amount is disbursed.

2. You are in greater control when looking for properties

Since your loan amount is not proportional to a chosen property, you have greater flexibility regarding what type of property you want to purchase. You can do house hunting based on how much money you have with you instead of doing guesswork.

3. Greater negotiating power

When you get a pre-approved home loan, your builder or your seller knows that you have money. You become a safer bet. Instead of negotiating with people who haven’t yet arranged finance, he or she knows that you already have the means to purchase the property. This gives you greater bargaining power.

4. Easier down payment

HomeCapital helps individuals fast-track homeownership, especially for those individuals who are buying their first home and don’t have enough capital to make the down payment. With a pre-approved home loan, you can get an idea of the amount of down payment assistance you require from HomeCapital.

Although there are many benefits of getting your loan approved in such a manner to purchase a home, there are also many restrictions. For example, the owner or the seller of the property may have many contenders and he or she may not be sure of finalizing your offer because he or she doesn’t know whether you can pay for the property or not. Once all the information you have submitted is verified and the lender has found your credit score to be healthier and a safer bet, the pre-approved home loan should be disbursed in no time.

Things to remember before you buy a new home in 2022

Posted on by HomeCapital Team

New home buying is one of the most important milestones in our life. This is a high investment activity and hence has to be done carefully and with high attention to detail. Let us have a quick run-through with some of the key aspects of new home buying.

1. Requirement analysis

You may think that home budgeting should come before requirement analysis, which is right. This is the first step of your home buying process. However, in the post current era, things have changed. There has been a big change across several aspects of the real estate domain like design, financial assistance, and flexible payment options, etc. Even not considering the current scenario, it is always a smart move to conduct a detailed property survey across the pricing and what it has to offer. This will help you finalize your requirement.

Your lifestyle will be the key player in determining your home requirement. For example

i.  If you are working from home or traveling a distance to reach work

ii. You are a fitness freak or exercise occasionally

iii. You have kids going to school/college

This will give you the core idea of the property you are looking for and accordingly will form the basis of the survey. A few more aspects are discussed in the later sections of the blog.

2. Home budget

The second step of the new home buying process is standing on a clearly defined budget. Requirement analysis and home budgeting are not really two discrete steps but rather you can say that they run in parallel. However, you must have a minimal spending figure based on your income, savings, and investments. You also need to keep around 10% buffer to the minimal figure. This will give you some flexibility providing you with more options for new home buying.

3. Location

Generally, people prefer to buy a home in their current location unless they migrate to a different city.
When one has spent entire childhood in a particular location, it becomes an emotional attachment with the location and hence one prefers to be there. However, people do change location but it has to match with their lifestyle. You need to check a few aspects of location as mentioned below and it may differ from city to city.

i. Good infrastructure – roads, trains, bridges, metros, buses, cabs, auto-rickshaws.

ii. Education – Schools, colleges, and other educational institutes

iii. Essentials – Hospitals, blood banks, and diagnostic centers, health & fitness clubs, sports club,
    grocery stores, super stores

iv. Entertainment – Film & drama theatre

4. Property survey

As mentioned earlier, a property survey works very closely with your base home buying budget and lifestyle. However, property finalization must be done after the selection of the developer. For example, you may like the apartment but if the developer is not meeting certain standards or adhering to specific government regulations then you may have to choose another property.

5. Selection of your home

Once you have finalized the location and have a list of properties to choose your new home, you need to check the following things based on your lifestyle

i. Well-designed apartment with minimal or no space wastage. It has to be well ventilated along with a good supply of natural light.   

ii. Dedicated car parking for the owner and even better if few visitors parking is also available.

iii. 24/7 CCTV surveillance as well as manned security.

iv. Eco-friendly apartments with solar power solutions, rainwater harvesting, solid waste management, and energy-saving LED lighting systems.

v. On-site maintenance team to address home utility issues like electricity, plumbing, mechanical, etc.

vi. Health and sports facilities like gymnasium, swimming pool, table tennis, squash, jogging track, etc. Nowadays, even smaller apartment complexes have a compact terrace gymnasium and a small sports room.

6. Finalizing the developer

Your home buying process does not just end at its selection but you need to check a few things about the developer as mentioned below.

i. Check whether the developer is RERA certified

ii. Check the presence of developer and other homebuyer’s reviews

iii. Pay a visit to the developer’s previous projects and speak to their buyers and know their experience.

iv. Construction quality and timely delivery of previous projects

v. Once you have done the above checks and now plan to buy your home, ask the developer about flexible payment options.

If you can wait for a year or two then you can have a flexible payment option along with the project development.

7. Payment plan

This is yet another important aspect of home buying. You need to know a few things mentioned below to devise a sound payment plan.

i. Have a clearly defined budget with or without the option of a bank loan

ii. Check out the payment options offered by the developer.

iii. If a bank loan has to be taken then also check out its interest rates, amount of EMI, repayment options, and foreclosure charges.

iv. Do consider 10-15% above the home price for interior design works

Once you know the agreement value of your home, then you can also account for the stamp duty and registration changes that you would need to pay from your own savings.

New home buying is not an event or a small task of the day but it is a process that takes months or even more than a year. So, it is always better to go through each step diligently to enjoy a smooth, happy and satisfying experience. 

Stamp duty calculations in Noida to be as per carpet area

Posted on by HomeCapital Team

The Noida Authority as of late ordered that registration of apartments ought to be based on their carpet area. The move might carry genuinely necessary relief to homebuyers who had requested that registration of flats ought not to be dictated by their super area, which permitted a few developers to raise the expense of an apartment. Notwithstanding, to get the advantage of stamp duty calculation based on carpet area, the state government issued a notification.

What is the new stamp duty rule?

The new rule mandates the registration of flats based on their carpet area rather than the super area.

While developers and a few purchasers have welcomed the order, others said further explanation is required. Likewise, it is not yet clear whether the rule will assist in bringing down costs for homebuyers.

This request by the Noida Authority will offer a lot of relief to homebuyers as it will lessen their registration fee cost for the apartments and subsequently bring down their overall property acquisition cost.

This will save Rs 1 lakh to Rs 2.5 lakh per purchaser, contingent upon the size of the apartment. A few buyers said the fight to pay the right stamp duty on the specific area of the flat has borne fruit and the sub-registrar of Noida Authority cannot constrain purchasers to pay excess stamp duty.

The Supreme Court had given a notification to Noida Authority in this regard on October 25.

The Real Estate Regulatory Authority (RERA) had as of now ordered before that developers should sell flats dependent on their carpet area rather than the super built-up area. Nonetheless, while developers did mention the carpet area of the flat, there was vagueness when it came to registering them, which was for the most part charged dependent on the super area.

With this request now, outright clearness has been given and homebuyers are set to profit from this.

After the introduction of RERA rules, most developers have effectively switched to these guidelines and have updated their prices. As per the president of the CREDAI Western UP, assuming we look at the ground reality, this will not be bringing any distinction whatsoever to the general apartment cost or the income acquired by the government registration department and the government exchequer.

The Uttar Pradesh Stamp and Registration Department of Noida is prepared to execute this request assuming the Noida Authority has ordered that the registration of a flat be done based on the carpet area. Notwithstanding, right now both the records (on super area and carpet area) are being registered. Having said that, assuming someone needs to sell a flat registered as per super area premise before RERA in 2016, wherein the deed just notices super area, that must be done. Presently, there is an arrangement for both. The registries are executed based on records given by the Noida Authority, purchasers, and the developers.

In April 2021, Haryana RERA had said that the sale of property based on the super area would be treated as a fraudulent/unfair trade practice by the promoter. The conveyance deed – an agreement where the seller transfers all rights to the legal owner – too should be executed on carpet area premise as it were.

According to the Haryana RERA Act, which came into power in 2017, developers are permitted to sell property based on actual carpet area but due to ambiguous definitions, they often evaded this necessity. Prior to the Real Estate (Regulation and Development) Act, 2016 came into existence, there was no legal description for the term carpet area. The Act gives specific/concrete meaning of carpet area, which has tended to the vagueness and uncertainty in this regard.

What is the difference between carpet area and super built-up area?

The Real Estate (Regulation and Development) Act, which came into being in 2016, unmistakably explains that the cost of a flat is to be determined via carpet area and not super area.

The Act defines carpet area as “the net usable floor space of a flat, barring the area covered by the external walls, areas under services shafts, exclusive balcony or veranda region and exclusive open terrace area, yet incorporates the area covered by the interior partition walls of the flat.”

Basically, a carpet area is that part of a flat that can be utilized to lay a carpet. It doesn’t include the lobby, lift, stairs, and play areas.

Segment 4 of the Act says that each promoter ought to apply to the RERA for registration of a real estate project and give, in addition to other things, the carpet area available to be purchased in the project, alongside the area of the balconies or exclusive open terraces with the apartment.

A housing society comprises different common areas. While purchasers need to pay a month-to-month maintenance charge for the upkeep of these spaces, they additionally need to pay out cash for a proportionate part of these spaces at the time of purchase.

Developers typically add the loading factor, or built spaces not exclusively allocated to the purchaser, to the carpet area to come up with the super built-up area. This often incorporates the corridor, lift lobby, lift, and now and again, even amenities like pools, gardens, clubhouses, and tank spaces. This gives clients the feeling that they are purchasing a huge apartment.

What is the likely advantage for homebuyers?

The new rule should result in homebuyers paying less for apartments and lower stamp duty.

A condo with a super area of 1,200 to 1,300 square feet valued at Rs 2,000 for every sq. ft. would cost Rs 24 lakh to Rs 26 lakh. Nonetheless, by taking just its floor covering space of 1,000 sq. ft. into thought, the expense would drop to Rs 20 lakh.

There will be a decrease in the stamp duty payable on the off chance that the estimation depends on carpet area and not super area and the circle rate stays unaltered.

On the off chance that the circle rate for an apartment is Rs 4,000 for every sq. ft. of super area and this rate applies to the carpet area, then, at that point, there will be a decrease in the total stamp duty payable. The difference could be just about as much as 20%.

For an apartment with a super area of 1,000 sq. ft. and a carpet area of 800 sq. ft., the value for stamp duty (Rs 4,000 for every sq. ft.) would reduce by Rs 8 lakh. Resultantly, the stamp duty payable will be brought down proportionately.

Likewise, there is no doubt of a refund where purchasers have paid stamp duty on super areas and have yet to finish the registration.

Regardless, the circle rate has yet not been notified based on carpet area as per law.

Anyway, what’s the catch?

Some legal specialists say the Noida Authority’s choice is good since it is mandated by the RERA, as well.

This will help purchasers in knowing the specific region they are getting from the developer, which they were not when just the super area used to be disclosed.

Legal experts also speculated that buyers might need to hang tight for notice by the Revenue Department of the state legislature of Uttar Pradesh wherein the circle rate computation ought to be determined based on carpet area and not super area to avail of the advantage of stamp duty calculations based on carpet area.

Unsecured loans and how can you apply for them?

Posted on by HomeCapital Team

Loans that have no requirement of any type of bond are called unsecured loans. Some also refer to them as signature loans as you just need to sign to meet the lender’s parameters to be eligible for the loan. In the case of unsecured loans that do not ask for collateral, the interest rates are often higher than usual and the lender expects higher credit. 

The credit of the borrower has an adverse impact if the loan account ever defaults. There is a possibility when such instances crop up that the lender might choose to bear it. On the other hand, they could approach the court to get reinstitution. However, being an unsecured loan means they cannot capture the borrower’s assets unless the legal system deems fit to do so.

Things to keep in mind

An unsecured loan is given merely on the basis of the salary and good credit history of the borrower. There are no assets provided to the lender as collateral. The credit ratings that are needed to be eligible for an unsecured loan are considerably higher due to the risk that the lender faces. There are several types of unsecured loans including home renovation loans, credit cards, vacation loans, and many more. The lender holds all the power to access and decide whether the credit of the borrower is sufficient to get a loan. The borrower also escapes the unethical lending practices when they apply for an unsecured loan.

How do I get an unsecured loan?

The various ways of applying for an unsecured loan are highlighted below:

1. Website of the company: Almost all of the market’s biggest lenders now provide their services through their websites. You can apply for a loan using your credentials on the bank’s official website.

2. Loan aggregators: Third-party loan aggregators can assist you in locating unsecured loans at good rates on the market.

You may evaluate the various loan packages and select the one that best meets your requirements. You may compare interest rates and processing costs from several lenders before making a final selection this way.

3. Branch office: You may also apply for a loan through a lender’s branch office. This is no longer the most popular option among today’s borrowers. You may utilize this option to apply for a loan if you are not Internet aware.

Unsecured loans come in a variety of shapes and sizes, and they may be used for a variety of objectives. Borrowers can get unsecured revolving loans like credit cards and personal lines of credit in addition to standard term loans like personal loans and school loans. The following are the most prevalent unsecured loan types:

1. Individual loans – Personal loans are essentially unsecured bank loans that may be utilized for everything from dream vacations to home renovations to medical and other unexpected expenses.

2. Credit cards – While the credit-based system is on a steep rise, they are in fact one of the most common forms of unsecured loans that people might not even be aware of. The creditworthiness of the individual informs the amount of credit they are eligible for and it is adjusted accordingly.

3. Student loans – Unsecured loans often include those that are given by the government or private student loans. Unfortunately, the government-sanctioned loan could have a short due date until it has to be returned. They can also capitalize on the borrower’s federal tax to get the money back that they have lent.

Unsecured loans are therefore those that do not require you to keep any of your assets as collateral. These loans are given based on the credibility of the borrower and on good faith that the borrower will return the amount that they are capable of repaying. We have highlighted the various ways that you can apply for them and the types of unsecured loans that exist. 

What is a fixed-rate mortgage and how is it different from an adjustable-rate mortgage?

Posted on by HomeCapital Team

The kind of loan whose rate of interest does not fluctuate during the entirety of its term is called a fixed-rate mortgage. This is what sets it apart from the other types of mortgages that are available in the market. Particularly the mortgages that have an adjustable rate. One of the most popular kinds of mortgage is the one that is fixed for a period of 30 years. It is followed by the 15 years fixed mortgage. There are a few lenders that do not adhere to these fixed terms, but instead, they let you set the terms according to your needs like 18 years or 20.

Advantages of fixed-rate mortgages

It refers to a set amount that is payable every month which is not prone to change. During the entire duration of the loan’s term, the same amount and interest are to be paid in a fixed-rate mortgage. It creates a pattern of predictability of the amount of interest you have to pay. You can also take the help of various loan charts to see how much interest you will have to shell out during the entire duration of the loan. It is also extremely straightforward and easy to understand. In case, the complexities of finance are too much for you to navigate, the uncomplicated nature of a fixed-rate mortgage leads to an understanding of the amount that you have to pay which can grant cause your mind to rest.

Disadvantages of fixed-rate mortgages

The monthly payment is not flexible so it cannot be decreased. The only way you can reduce your fixed-rate mortgage is by refinancing. Contrarily, its interest rate is higher than its counterpart such as an adjustable-rate mortgage (ARM) which has a comparatively lower rate. To begin with, the amount of money you need to spend on interest can really cut into your budget. If the term of your loan is 30 years, the possibility of you spending more on interest in a fixed-rate mortgage is much higher as compared to an adjustable-rate mortgage. In case, you don’t mind paying that much due to the benefits you receive in a fixed-rate mortgage, you could easily save even more if you opt for a 15-year fixed-rate mortgage. The main repayment is comparatively unrushed and relaxed initially. The amount of interest you are paying is higher, which results in reduced principal payment as compared to ARM, even if your payment every month is the same.

Difference between an adjustable-rate mortgage and a fixed-rate mortgage?

Currently, what sets them apart is the beginning rates that are very little to nothing at all for ARM as compared to fixed-rate mortgages. The thought is that if the risk remains the same but you have to pay the same amount, why to bother. Once interest rates become higher, customers might opt for adjustable-rate mortgages more, however, the difference between the two needs to increase considerably before that happens. While interest rates are beginning to recover from their pandemic slump, there is a possibility that they will still remain at the bottom for the foreseeable future. It is resulting in the arm’s appeal to wane in the economic upheaval society finds itself. If you want to sell your house prior to the resetting of the rates, ARM is the preferable option. However, all of this is based on whether the house rates will remain where they are, or go up.

Mortgage rates being the lowest ever, it would be advisable to opt for a fixed-rate mortgage. However, there is no prediction if this will continue as the pandemic keeps changing our day-to-day lives. This pandemic has imparted one main lesson which is that you cannot know what is going to happen in any sector of society. So, keeping this in mind, if you are looking to refinance or buy a house, fixed-rate mortgages are the best choice. Keep in mind all of the points we have highlighted above to make the right choice based on your circumstances. 

Karnataka government to launch digital wallets for storing property records

Posted on by HomeCapital Team

The government of Karnataka has announced plans to launch a digital property wallet in an attempt at easing the process for owners. The government will before long launch a digital wallet with a smartcard and key for putting away property records.

Kaveri Blockchain Project for property digital wallets

The Centre for smart governance(CSG) has taken up a blockchain project to digitize and verify property records in Karnataka. The venture, named Kaveri Blockchain, is an entirely owned subsidiary of the state’s government agency that aims at making registration more transparent with this innovative technology.

The property records smartcard will revolutionize the way property owners transact business. From government-claimed properties to agricultural land and residential homes, each owner has a card stored in their name that records all transactions made on these types of assets with ease. As many as 67 kinds of land transactions are recorded including the sale, buy, rent, contract, gift deeds, and so on – will be recorded and can be checked using the smartcard. CSG has already launched a pilot in the Tumakuru locale, with farmers and property owners enrolling their property records and completing property transactions utilizing just the smartcard. 

How does the wallet framework function?

The government will issue a smartcard with a chip in it to property owners whose names have been enrolled by the revenue department against the land/properties they own. It is given to any individual who expects to register a property or as of now possesses one. 

The card is then validated at the local sub-registrar office with an e-KYC process, wherein the person’s Aadhaar number is confirmed and biometrics are recorded. Once the Aadhaar number is confirmed with the records protected in the Kaveri portal, the same will be secured in a blockchain and can be accessed any time by the proprietor utilizing a four-digit password. 

However, with regards to the smartcard and key, the proprietor will be able to access it through a kiosk installed at the sub-registrar’s office. In case of a sale, the purchaser will likewise be given a smartcard. 

When the buyer and the dealer show up at the kiosk, they can utilize the card and access the records to check that there is no encumbrance on the property which is being bought. The sub-registrar, who will have access to the property documents through his master key, can register the sale after cross-checking all the details.

When the sale is completed, land records will be very quickly transferred into the name of the purchaser, which can be affirmed through his own smartcard and key.

In its testing stage, in the course of the last one month, the centre for smart governance has given 781 smartcards and managed 310 transactions.

Top 5 Areas to Buy Flats in Chennai

Posted on by HomeCapital Team

Chennai is one of the first metros in the country. It has been one of the largest employment hubs having large Indian as well as international corporations. It also has one of the top academic institutions, a blend of traditional as well as modern culture society. Over the last decade, Chennai has speedily developed in infrastructure and industry. There is a great range of prices when it comes to buying flats in Chennai across different localities across the city. Being a coastal city, it has its own beauty and plush seafront localities like Boat club, Besant Nagar, etc. Let us have look at the top areas to buy flats in Chennai.

1. Besant Nagar

Besant Nagar has a historical presence as it is one of the oldest localities in South Chennai. It is a British-era neighbourhood and hence has a heritage value. However, it has a lot of state-of-the-art commercial and residential developments. And even in the pandemic period, the property prices in this locality have soared.

The types of properties available are residential apartments, individual plots and houses. The average property price here is less than Rs.18,000 per sq. ft.

2. Nungambakkam

This is yet another British-era neighbourhood with a European flavour of life. Nungambakkam is one of the elite neighborhoods with giant corporations, important government offices, renowned academic institutions, big shopping malls, tourist attractions, five-star hotels, and a variety of restaurants, and more. It is located to the southwest end of Chennai around 6 km away from Poonamallee Highway.

The average property price here is around Rs.19,000 per sq.ft

3. Adyar

Adyar is a southern located suburb of Chennai known as Adaiyaaru. This is also one of the oldest localities. This is also known for being a green area and Elliot’s Beach in its vicinity makes it a sought-after area to buy flats. It is famous for shopping malls as well as a variety of finest restaurants. It has easy access to hospitals, educational institutions, and banks.

This is a neighbour of Besant Nagar which is also an upscale area. Adyar is the home of the famous IIT Madras.

Property prices have a big range. Nevertheless, the average property price is Rs.12,000 per sq. ft.

4. Thiruvanmiyur

This is another southern neighbourhood and has its own beach which forms a great tourist attraction. It is known for being a host for the first IT Park. It is also a proud owner of famous temples like Valmiki, Maruundeeshwarar, and Thiruveethi Amman, and a few more on its list. It has well-connected transport systems with a Metropolitan Buses network and also a dedicated railway station. It is also home to Software Technology Parks of India (STPI), an organization of the Ministry of Electronics and IT, Government of India, and a big hub for IT Companies.

The average property prices range between Rs.8,000 – Rs.13,000 per sq. ft.

5. Mylapore

Mylapore is Chennai’s central locality. It is one of the oldest and fairly developed localities. It shares its borders with a few upscale areas like Kodambakkam, Nungambakkam, Tenampet, and Alwarpet. It is famous for Ramakrishna Math and Kapaleeeshwara Temple.

Mylapore is also known for low and medium-rise buildings offering affordable buying of flats in Chennai city.

The average property price ranges from Rs.10,000 – Rs.17,000 per sq. ft.

Boatclub is the most expensive locality located near Adyar River and surrounded by lush green areas. This locality is famous for being a home for celebrities, HNIs, and other famous personalities. The price here ranges between Rs.40,000 – Rs.50,000 per sq. ft.

Chennai is a city where you will find a large range of property prices in a specific neighbourhood and hence easier to buy a flat as per your budget and requirements. Ultimately, the decision to buy a home should rest on your own individual situation, financial readiness to afford a property, life stage & career progression, and whether you are committed to owning it for at least a few years.