Things to know before you apply for a Home Loan

India is a great place to buy a real estate asset, as all you need to have is the will to buy the property of your own choice, for the rest there are number of companies and banks to provide home finance. 

There are new policies and initiatives that have been taken by number of banks and financial institutions have come up with number of repayment options as well as loan options in the financial market.   

Home Loans:

The loan that is offered to the customers who want to buy, construct or renovate a residential property is eligible to apply for Home Loan. Home Loans are unsecured loans as they are provided without a security, depending upon an applicant’s financial condition and profiling.

NRI Home Loans:

NRI Home Loans are simply like any other home loans issued to individuals living abroad for purpose of career or business. These too are insecure loans as not backed up by a financial security. There are a few things that may differ from a regular Home Loan, for example the rate of interest, the tenure and also the finance amount may differ. 

Loan against Property:

Loan against Property or Property Loans are loans which are offered to interested customers against their real estate asset. These are secured loans as are backed by a real estate asset of the customer taking out loan. There are a number of documents which are required to be submitted while borrowing Loan against Property India. 

Documents necessary for Property Loans:

Your Evidence of residence - A ration Card / Telephone Expenses / Power Expenses / Voters Card will do.

Evidence of Identification - A Voter's Card / Motorist's Certificate / Company's Card will do.

Your latest Bank Declaration/Passbook - from where you can show your wages / incomes being acknowledged from the past 6 months.

Salary Slip - last 3 several weeks with all deductions shown. A Form 16 from the last 2 years will also be required.

Copies of all Real estate asset Records - of the property in question that you select to commitment for the loan.

*If you are a self employed professional/individual, you will require the following documents:

Certified Financial Declarations for the past 2 years.

Evidence of Property - A ration Card / Telephone bill / Power bill / Voters Card will do.

Evidence of Identification - A Voter's Card / Driving license / Company's Identification Card will do.

Your latest Bank Declaration/Passbook  - from where you can show a wage / income being acknowledged from the past 6 several weeks.

Copies of all Real estate asset Records of the worried property that you select to commitment for the loan.

Lodha Palava City, the first smart city of India for its Smart People

Even though the city of Mumbai in the last 9-12 months has seen some slowdown for the real estate industry, Abhinandan Lodha, deputy managing director, Lodha Developers is confident of growth for his organisation. 

According to him the new 4000 acre Lodha Palava City project would garner a bottom-line of around Rs 600 crore every year, over the next 5-6 years and a total of around Rs 4000-4800 crore, over 8 years after paying all the taxes.

Lodha Palava City is a 4000 acre township located in suburban Mumbai. Out of that 250 acres have been developed and sold which has over 20,000 units exist. They are now developing 650 acres and expect to have 1 lac units by 2025. Current pricing ranges from 40 lakhs to 60 lakhs for 1 to 3 BHK. 

The company has grown by around 27 percent as compared to last year both in terms of topline and bottomline. Current debt for the company stands at Rs 5600 crore, which is fully serviced by internal accruals, said Lodha. The Lodha Group has absolute ambitious plans to make the city a dream for each Indian. 

Lodha group has not left any stone unturned to ensure that they have a huge success to Palava City. Lodha Palava City is world’s finest Town Planning Companies, Architects and Professionals who have studied the development across the globe.

This project will give an average of 60 to 90% returns to the Investors and Home Buyers across a time frame of 5 years plus. With a staggered payment approach and Bank Funding there is no other project available with a ticket size of 40 Lakhs plus to match the infrastructure with this project. 

With Mr Bachchan being the Brand Ambassador, it brings the added confidence to the home buyers and investors who have grown up seeing the Shehenshah of Bollywood and with him being the First Citizen would mean a lot to them. In an Industry First move, the Lodha Group has signed in Mr Amitabh Bachchan as the First Citizen of the Palava City, the New City for the New Generation developed by the Lodha Group.

Banker and Developers take necessary initiative to boost sales in Real Estate.

Bankers and Developers on same wavelength to make Real Estate a better place! The rate of interest may now vary between 15 and 35 basis points across the banking industry can fuel the demand which is already being stoked by the government’s programmes such as Smart Cities, Affordable Housing and Digital India with a focus on reducing the inflows into cities which are bursting at the seams.

With the reduction in interest rates by the banks has acted like a spark that the real estate market had been waiting for, with Home Loan interest rates on a slope, lenders are now more optimistic. SBI and Housing Development Finance Co which have shed their reluctance in passing on the Reserve Bank of India’s past rate cut.

New policies and initiative taken by the RBI and Indian government together like reducing the interest rates in Home Loan as well as building 100 smart cities are seen as a major step in boosting the stagnant real estate sector.

As per the I-T law, the buyer of an immovable property worth Rs 50 lakh or more is required to deduct (and deposit) withholding tax at the rate of 1% from the consideration payable to the seller. In case of failure to comply with the provisions, interest and penalty are imposed on the buyer.

Buying an apartment and your TDS formalities are thus, if the purchase price of your flat is Rs 50 lakh or more, then you have to comply with the tax deduction at source (TDS) obligations. You will be required to furnish information about the tax deducted and deposited online on the Tax Information Network (TIN) website in Form 26QB 
(URL is https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp).