We offer loans to meet personal needs of salaried individuals, where a monthly interest is changed under simple interest calculation.
The ownership of a house is one of the key signs of success among the fast-growing Indian middle class. As the income of the average Indian family increases, there has been a continuous increase in the desire to own a house and this has lead to the price of property to reach very high in last few years. This situation has made dream for the common man to purchase their home through just savings. So home buyers have multiple options to seek a home loan from banks as well as NBFCs.
Home Loan Characteristics
Here we have different features of a home loan to help you understand the home loans in a better way.
Banks are keeping home as collateral for loan purposes for security to involve a low level of risk for the lender. If you are unable to pay the loan for any reason, the lender can legally auction off your property to retrieve the outstanding loan amount. Interest rate of a home loan is lower than the interest rate of an unsecured loan, such as a personal loan, Business loan. You can apply for a home loan jointly with your spouse, family members or others as co-applicants. The amount of the home loan can vary based on your income, credit history, the locality where you are planning to purchase. Home loans usually have longer repayment tenures which range from 5 years to 30 years. The repayment time period for a home loan is fixed at the time you apply for home loan. home loan can preclosure at any time after few month as per RBI guidlines. Some banks charge a prepayment fee if you prepay a loan while some do not. Therefore, home buyers should compare the home loans available to find the best home loan offers. The Equated Monthly Installment (EMI) is the money you pay each month to repay your home loan principal amount and its interest amount. Thus when calculating the Home Loan EMI, both the accrued interest on the loan and the principal amount are taken into account. Home loan includes a number of associated charges, such as registration charge, processing fee, penalty on prepayment, commitment charge and miscellaneous charges (documentation/consultation).Banks usually maintain a margin of at least 20% when sanctioning a home loan. Thus, the home loan amount provided to you only covers a maximum of 80% of the estimated value of the house being purchased. Additional costs such as down payment, registration costs, etc. have to be borne by customer. They can avail tax benefits on home loan as per provisions of the IT Act, 1961, which are subject to change.
Personal loan is to be used for various purposes, like a wedding, remodeling your home, paying for your higher education fees or planning for a holiday, and a personal loan can help you to fulfil all your requirements. As the loan has varied advantages, it caters to the need of every section of individuals. Personal loan can also be availed without collateral, and hence can be availed by salaried individuals. You can find a variety of loan options with the interest rates starting from 10.99% and Loan amount starting from 25k to 25Lacs. We will find the best suitable BANKs/NBFCs offering minimal interest rate best suited for your profile.
Personal Loan Eligibility:
Eligibility for borrowers must meet following basic criteria to apply for loan:
- The borrower must be an Indian Resident
- Minimum age - 21 years
- Valid government issued identity proof
- Valid bank account
Documents Required for Personal Loan:
- PAN Card
- Address proof by showing any one of these - Passport, driving license, Voter ID, post-paid/landline bill, utility bills (electricity/water/gas)
- Bank statements - where your salary is deposited, for the last 3 months
- Pay slips of the last 3 months
A Business loan is a short term financial instrument exclusively designed for business purpose and advanced to self-employed proprietors as well as entities such as partnerships, private and public limited companies. A Business Loan can be utilized for various business reasons such as to maintain business operations, invest in equipment, set up a new branch and other purposes related to business. Business loans are usually provide based on the business turnover and IT returns filed for 2 or 3 years.
One of the major benefits of Business loans is that they are usually unsecured with no Security like Built property or guarantors and most banks offer pre-payment facility with minimal charges. Another important benefit is that if the business is a corporate entity and there is a default, the burden is not solely on the owner but on the company as a whole. The company is liquidated to clear the loan in such an extreme scenario.
The banks are funding Business Loan amount from 5 Lakhs & Above with Simple KYC & Income documentation for tenures from 12 – 36 months and can be repaid through EMIs.
Mortgage Loan you can leverage the property you own to avail additional finances when you need it or to purchase new property. From property mortgage to long term loans you can expand your business, acquire an asset or satisfy personal financial requirements through Mortgage Loans facility.
A mortgage loan helps you raise money so that you can make up for your financial shortage and also purchase what you want. Mortgage loan is a Secured Loan. The loan is secured on the borrower's property. Going forward, the borrower needs to repay the loan as well as the interest amount on the loan within a particular period of time. Once the repayment is completely done, you will be able own the property on your name or get back your belongings. Mortgage loans are also known as or claims on property or liens against property. In case, you stop repaying your mortgage loan, the lender/bank has the complete right to possess and sell the secured property. A mortgage loan involves the following components - principle, interest, tax and insurance. Principal is the amount you actually borrow from your lender. Interest is the reward your lender receives for lending you the money. The interest rate plays a major role in increasing the size of your mortgage loan. Higher interest rates lead to higher mortgage payment. Tax and insurance payments are added to your monthly mortgage payments. Insurance provides you protection against future injuries that may be caused to your property. Also, your real estate taxes will be added to your monthly payments. The government will collect this tax on yearly basis and use that amount to fund various public and social sector activities. So, when you take a mortgage loan, you also need to understand the above mentioned components that affect the size of your mortgage repayments.
Mortgage Loan Eligibility
The following factors are considered while determining your eligibility for a mortgage loan:
Your total annual income. Minimum age needs to be 21 years. If have any existing liabilities. Valuation of your property. Number of dependents you have. Your total work experience and experience in your current job. Financial documents. Both salaried and self-employed individuals are eligible to apply for mortgage loan.
Documentation required for a Mortgage Loan
The documents required for a salaried and self-employed individual differs little. A salaried individual needs to submit the following documents: A filled loan application form, A few passport size photographs. Proof of identity, As proof of identity you can submit voter card, driving license, PAN card, passport, employee ID card etc. Proof of address. Normally banks accept ration card, Aadhaar card, telephone bill, electricity bill, voter card and driving license as address proof. Your latest salary slips. Form 16 issued by your employer. Bank statements of last 6 months And a processing fee cheque.
A self-employed needs to submit the following documents:
Application form, recent passport size photograph. Identity proof, Proof of business existence, Proof of education qualifications, certified financial statement for the last 3 years, Last 3 years income tax return certificate, Last 3 years profit and loss (P&L) statement. Last 6 months bank statement Processing fee.
SME (Small and Medium Enterprises) Loans
Small and medium enterprises are critical for the country’s economic and social development. SME is the biggest employment provider next to agriculture. The SME plays a major role in creating jobs and generating income for the low income group. SME fosters economic growth, social stability and contributes to the development of the private sector.
Access to financial services is vital for the SME sector to survive in any economy. SME Loan is offered to fund small and medium sized enterprises. There are various banks in India that work hard to provide SME finance to the small and medium enterprises.
The SME loan policy has been framed keeping in mind the following objectives:
To improve credit flow to SME sector. To formulate norms to SME sector to ensure that the adequate and timely credit is available to the sector. The SME Loan policy also provides guidelines to the branches offering credit to the SME sector and to formulate norms of lending to the SME sector. To devise an organizational structure to handle SME credit portfolio in a focused manner.
The policy will cover the following:
Composition of the SME sector Guidelines on lending to the SME sector SME loan factory model Policy on credit rating and pricing Identifying thrust industries Discretionary lending powers Training needs Reporting and monitoring system
If it is a manufacturing enterprise, it will have up to Rs.25 lakh invested in plants and machineries. If it is a service sector enterprise, then up to Rs.10 lakh will be invested in equipment.
If it is a manufacturing enterprise, it will have above Rs.25 lakh and up to Rs.500 lakh invested in plants and machineries. If it is a service sector enterprise, then above Rs.10 lakh and up to Rs.200 lakh will be invested in equipment.
If it is a manufacturing enterprise, it will have above Rs.500 lakh and up to Rs.1,000 lakh invested in plants and machineries. If it is a service sector enterprise, then above Rs.200 lakh and up to Rs.500 lakh will be invested in equipment.
Banks are advised to fix their own targets to achieve the 20% yearly growth in credit to the SME sector. Banks are advised to ensure that 60% of the total advances to small enterprises must go to micro enterprises.
40% must got to micro manufacturing enterprises who have up to Rs.5 lakh invested in plant and machinery and micro service enterprises that have up to Rs.2 lakh invested in equipment.
20% must got to micro manufacturing enterprises who have above Rs.5 lakh and up to Rs.25 lakh invested in plant and machinery and micro service enterprises that have above Rs.2 lakh and up to Rs.10 lakh invested in equipment.
An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives.
Mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities.
For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund.
Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment.
A closed-end fund is often incorrectly referred to as a mutual fund, but is actually an investment trust. There are many types of mutual funds, including aggressive growth fund, asset allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund, crossover fund, equity fund, fund of funds, global fund, growth fund, growth and income fund, hedge fund, income fund, index fund, international fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund.
A Demat Account is an account that allows investors to hold their shares in an electronic form. Stocks in Demat account remain in dematerialized form. Dematerialization is the process of converting physical shares into electronic format. A demat account number is required to enable electronic settlements of all the trades. Demat account functions like a bank account, where you hold your money and respective entries are done in bank passbook. In a similar form, securities too are held in electronic form and are debited or credited accordingly. A demat account can be opened with no balance of shares. You can have a zero balance in your account.
As it is difficult to hold shares in physical forms because it involves a lot of paperwork, long process and risk of fake shares. So, for simple and seamless trading and investing, Demat account is must to trade in India’s stock exchanges. Although the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form but this option is not preferable any more. A demat account holds the certificates of financial instruments like shares, bonds, government securities, mutual funds etc. So, it involves the process of converting physical shares into electronic form and credited to investor’s demat account.
Financing one's car through a Car loan can be happy experience. One needs to analyze key information and customize a loan plan with one's banker or financier for optimum benefits and we at Apna Loan Guru stand beside you to help you buy your dream car while managing finances easily.
Every working adult dreams to own a car, a house and a good companion. The retail automobile market worldwide targets this human demand for tangible assets. While a few who are born rich with a silver spoon, can afford to buy a car with entirely own funds, many who are born in the middle or working class, often resort to a Car loan...
Machinery & Equipment Loans
Any manufacturing or service industry which requires machineries, can take term loans to purchase the machinery. By doing this, the capital expenditure cashflows can be distributed in multiple years, while the benefit of production can be achieved immediately. Other than nationalized and co-operative banks, there are certain NBFCs which has a complete focus on machinery term loans. We have 6 NBFCs which focuses on machinery funding.
Important USPs of Machinery Loans are:
Machinery Loans are accessible for all the SME sector industires. These machinery could be either made in India or imported from other countries. With our expert team and tie-ups with all leading banks as well as NBFCs, we ensure fast approval and disbursal of loan for the machinery purchase requirements of our clients.
By availing machinery loans through us, you will enjoy numerous benefits such as: -
Avail finance from source of your choice i.e. NBFC or Banks