To avail a home loan in India is never an easy task. With rising cases of bad debts, banks are becoming increasingly wary about lending to anyone with whom even the slightest of risk is involved. While you can't change strict procedures followed by the banks, there are still some ways that can improve your chance of getting your loan approved without any hassles. Recently, three of the country's largest banks have reduced their lending rates by 0.15 percent to 0.25 percent, bringing lots of hopes among home-loan borrowers to pay less on their monthly EMIs. While State Bank of India and HDFC Bank cut their benchmark base rate by 15 basis points to 9.85% from 10%, ICICI Bank reduced its base rate by 25 basis points to 9.75%. If you're also planning to buy or invest in a residential property, consider these simple steps to avail a home loan faster: 1. Build your reserves: You should think 2-3 years in advance before planning to buy a house. Build your reserves and save a fixed amount every month so that you can pay maximum down payment at the time of availing a home loan. Banks usually provide loans for 75-85 per cent of the total value of the house, but one should strive to pay as much as possible in order to reduce the number of EMIs and the subsequent interest rates. It is advised to pay 40 per cent of the total value of the house as down payment and take loan for the remaining. The more amount you pay, better are the chances of you getting the loan approved from the bank. 2. Get co-borrowers: If your income isn't enough to get the required home loan or you're stretching it too much, there is an option of getting a co-borrower for your loan. This means that the liability of the loan will be shared between you and the co-borrower, and his/her income will also be taken into account by the bank to calculate the repaying power. Banks generally allow six co-borrowers for a home loan. Getting a co-borrower enables you to avail a bigger amount of loan as banks consider it less risky to lend to people with better income prospects. 3. Pay off your credit card bills: Banks take into consideration your credit card payment history and any other personal loans that you may have, before passing a new loan on your name. Ensure that you've cleared all your pending credit card payments and other personal loans before applying for a home loan. A well-maintained account history enables banks to forward your home loan application faster to the upper management. Try to clear all your outstanding payments few months before you apply for a home loan. 4. Maintain your bank account: When you apply for a home loan, the first thing that banks ask is at least six months of your bank account statement. Banks enquire about whether there are any discrepancies in your account in the form of a bounced cheque, an unpaid EMI or low balance at the end of each month. Banks consider it negative if you maintain a low balance at the end of every month as this would mean you are already stretching your monthly expenses and a home loan would put an additional burden on you. Tidy up your bank account, keep a healthy balance and pay all your EMIs on time, before you apply for a home loan. 5. Get all your documents in order: There are several documents required by banks prior to processing your home loan application. The documents include your identity proof, address proof, bank statements, proof of annual income and guarantor form, among others. Apart from these documents, banks also ask for application form duly signed by you, processing fee cheque, six cancelled cheques and an ECS mandate form. There are also property documents require such as copy of the allotment letter or buyer agreement and a receipt of payments made to the developer. If you've all these documents ready, there is hardly any reason that bank refuses to process your application. 6. Buy from a reputed builder: Banks do verify the property for which you want to avail a home loan. In cases when a home loan borrower couldn't be able to payback the loan amount, banks repose the property and recover the money by selling it again. It is for this reason, banks do a thorough check of the property, the builder and the location, so not to find any trouble in reselling it. It is therefore advised to buy property from reputed builders who take care of these concerns and often tie-up with banks for easier processing of your home loan application. Buying a property from a reputed builder also helps buyers to stay away from any property dispute or legal hurdles in future. Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group says, “With top banks reduced their interest rates on home loans, this is a great opportunity for people to buy their dream home. With lowered monthly EMIs and favorable economic environment, even middle-class families can afford to buy their own residential properties in India. The development will give a major boost to the real estate sector and helps in bringing positive sentiments back into the sector.” |
India is fast emerging as top business destination with several global companies and new enterprises investing in the Indian market to capitalize maximum gains. With positive growth prospects, encouragement to FDI and lenient rules for global investors, many new enterprises and start-up companies are planning to set up their offices in India to sustain in the competitive environment.
In the past few years, India has become the second largest serviced offices market in Asia, owing to a rapid increase in demand for customized office spaces and commercial properties. Stimulated by positive sentiments of the global investors, growing domestic market and expansion of R&D and IT industries, the demand for premium office spaces and serviced apartments is expected to increase further in the coming years. Serviced office spaces offer numerous benefits to start-up companies that include prestigious addresses and locations, ready to work utilities, payment flexibility and pre-installed technologies. Serviced offices provide sharing workspace to young entrepreneurs and start-up companies who want to focus on expanding their businesses while avoiding burdensome costs of setting up utilities like furniture, telephone connections, power backup, etc., in their offices. Moreover, through serviced office spaces, companies can minimize their real estate cost and upfront capital investment by paying only for the space and facilities they actually use. Looking at the increasing demand for commercial properties and office spaces, Unnati Fortune Group brings its most prestigious Executive Office Floors for start-up companies and entrepreneurs at Unnati World. Unnati Fortune Group, which is a leading real estate company in Delhi NCR, offers low rise Executive Office Floors - the exclusive commercial promenades with futuristic designs and world-class infrastructures. The Executive Floors at Unnati World are equipped with all the modern amenities that include conference centre, office support services, waiting lounge, impressive atrium, three-tier security system, fast food joints and coffee shops. The Executive floors by Unnati Fortune Group offer an unmatched experience of a corporate life blended with the utmost luxury and comfort. The commercial floors are part of Unnati World, one of the premium commercial projects Noida offered by the group. Spread over 50 acres of prime land, the project is strategically placed at most inhabited sector 144 of Noida and offers great connectivity to the residents through the Noida Expressway and FNG corridor. In terms of investment, the project offers assured 12 per cent return on investment till the offer of possession. Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group says, “With a stable government at the Centre and favorable economic environment for starting a new business, there is a rapid rise in demand for premium serviced offices in India. These offices are fully furnished spaces and equipped with all modern amenities that allow companies and start-ups to resume work without wasting time on collecting resources.” Since there are many people coming to Delhi NCR region for better job opportunities, finding a home close to office areas becomes the top priority to them. While walk-to-work culture is catching up in India, Delhi NCR region has witnessed coming of most real estate projects near commercial property segments keeping in mind the needs of office-goers and the residents. Properties near commercial areas are often costly that led most people end up buying or renting apartments far from their offices. With this, while they save on their accommodation cost, they still have to spend a significant amount of their time and money on traveling. It is because of this reason that close-to-office properties are becoming hot favorite for working professionals in Delhi NCR. Walk-to-work properties enable people to make a perfect balance between their personal and professional life by allowing them to save on their time and money in commutation. The properties are also equipped with all the modern amenities and world-class infrastructures keeping in mind the needs of working professionals. Looking at the increasing demand for walk-to-work properties in Delhi NCR, Unnati Fortune Group brings its premium real estate project in Noida. The group offers 'Unnati World' as a prestigious project that offers both the residential apartments and commercial office spaces in its vicinity at an affordable price. Spreads over 50 acres of prime land, Unnati World offers the residents with all the modern amenities that provide them all the luxuries and comfort. The project is strategically placed at the most inhabited sector 144 of Noida and offers great connectivity to Delhi and Gurgaon through the Noida Expressway and FNG corridor. Unnati World is a premium project that offers a wide range of property options including residential apartments, executive office floors, fortune suits, retail spaces and medifloors, along with others. Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group says, “With more people attracting towards walk-to-work properties, there will be rapid rise in such projects that offer both the residential and commercial spaces at the same place. Recently, the Yamuna Expressway authority has also come up with a proposal to develop the area by constructing buildings for residential, commercial, institutional and recreational purposes in close proximity to one another. All these developments will surely help working professionals to find close-to-office properties in Delhi NCR.” Good news for home-loan borrowers as country's largest banks have reduced their key lending rates by 0.15 per cent to 0.25 per cent, effective from April 10. The Reserve Bank of India (RBI) on Tuesday asked the public and private banks of why they are not reducing interest rates on home loans and other utilities even when the apex bank has cut the repo rate by 50 basis points in this year alone. In its bi-monthly monetary policy review on April 7, the Reserve Bank of India keeps key lending rates unchanged, while directing banks to pass on the benefits of the two previous cuts to customers. RBI has announced cut in key lending rate by 25 basis points from 7.75 per cent to 7.5 per cent in March this year. This was the second rate cut, the first being in January. It was largely expected that with cumulative cut reached to 0.5 per cent in this year alone, it will enhance lending powers of the banks and significantly reduce monthly EMIs on home loans. While presenting his policy statement for 2015-16, RBI governor Raghuram Rajan took the banks by storm and said, “I do not see an environment where credit growth is tepid. Banks are sitting on money, so to speak, and their marginal cost of funding has fallen. The notion that it hasn't fallen is nonsense.” He further said that banks have to cut their base lending rates owing to competitive pressure and pass on the benefits of the two previous cuts to people at the earliest. Within hours of the statement made by RBI governor, three of the country's largest banks have reduced their lending rates by 0.15 percent to 0.25 percent. While State Bank of India and HDFC Bank cut their benchmark base rate by 15 basis points to 9.85% from 10%, ICICI Bank reduced its base rate by 25 basis points to 9.75%. The cut in interst rate by SBI and ICICI Bank will be effective from April 10, while that of HDFC Bank from April 13. The much-awaited rate cuts will bring lots of optimism back into the real estate sector and also provide a major relief to home-loan borrowers to pay less on their monthly EMIs. Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group says, “The Indian real estate sector is witnessing winds of positive change with numerous developments in the past few months. Whether it's the current government's plan to build 100 smart cities in India or setting a target of providing affordable housing to all Indian citizen by 2022, the real estate sector is strengthening in the country. Now that the banks have reduced key interest rates by 15 to 25 basis points, there will be more people coming forward to invest in the real estate sector.” 'Luxury' is becoming the new normal in real estate. While the sector has witnessed lots of ups and downs in the past few years amid economic slowdown and high interest rates, the luxury segment is the one that registers steady growth with significant appreciation in property prices.
According to the Knight Frank Wealth Report 2015, India's Ultra High Net Worth Individuals (UHNWIs) invest nearly 50 per cent of their total wealth in the real estate sector, the highest across the globe, followed by the Australians at 42 per cent. The report states that as of 2014, there were 1,652 Ultra High Net Worth Individuals (UHNWIs) in India, which are expected to double to around 3371 by the year 2024. With more and more people are getting attracted towards luxurious real estate properties in India, builders too shift their focus to providing premium properties with world-class infrastructures and designs to the investors. Talking about luxurious lifestyle, Unnati Fortune Group brings its most prestigious real estate projects 'The Aranya' and 'Unnati World' in Sector 119 and Sector 144 of Noida, respectively. The projects are equipped with all modern amenities and world-class infrastructures setting new trend benchmarks of architectural excellence. Adding another feather to its cap, Unnati Fortune Group hires best architecture company ARCOP and a well-known interior designer Sussanne Khan, to design and develop its premium residential and commercial projects in Noida. Architects in Co-partnership (ARCOP) is the master planner of all the properties currently offered by Unnati Fortune Group. ARCOP is an internationally-recognized architecture company with expertise in providing best infrastructure designs across all major property segments. The company has its presence in India since early 70's through the offices of ARCOP Design Group and Ganju ARCOP Associates. Sussanne Khan, on the other hand, is a well-reputed interior designer with over 15 years' experience working on international design projects. She obtained an Associate Art Degree in Interior Design from Brooks College, Long Beach, California in the year 1995, and currently the owner of Sussanne Roshan's house of design store. Sussanne Khan has designed Vesta Villas, premium lake-facing villas with individual pools and finest architectural designs at Unnati World. Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group while talking about the future of luxury property segment in India says, “With positive growth prospects and favorable economic environment, there will be more demand for premium real estate properties in India. The current government's plan to build 100 smart cities will also help the country to attract maximum investors for real estate.” Mr. Anil Mithas says, “With these developments, the quality of infrastructure will definitely be a key motivator to the real estate growth in future.” |
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May 2015
MR. ANIL MITHAS
Chairman & Managing Director at Unnati Fortune Holdings Ltd Categories |