Saturday, November 24, 2012

Understand the Product Vendor Liability



It’s been a big worry to the buyers and to the seller when then want to purchase or sell the property which is under a loan. It is a very simple process which gives you the benefit of selling the property without closing the home loan which is there on the property. 

Banks have designed a product called “Vendor Liability” which gives you this benefit of availing the Home loan availing home loan on a property which has a loan already in the name of the vendor or seller. In the process of this loan a customer will go for a home loan as usual like in a normal home loan case. But the documents submitted to the process vary a bit to this product. Along with the regular income documents the vendor need to provide his Loan Account statement, Outstanding Letter and List of documents submitted to the bank at the time of availing the loan i.e list of property documents. These documents are to be submitted to the bank at the initial stage of the home loan processing only.

The process begins with the verification of Applicants and Co-applicants Residence, Office, Pay slips and Bank Statements. The property documents are scrutinized by a panel advocate and the property is evaluated by a technical valuer who will certify the property cost by taking the market value into consideration. Post successful verification of all the documents and Property the disbursement process is initiated by taking customers signatures on the home loan agreements. Customers will be given sanction letter from the bank which gives all the details of loan amount sanctioned, interest rate, tenure, repayment conditions and EMI details. Customer need to make all the margin payments to the vendor before initiating the disbursement process through bank and the same proofs have to be submitted in original to the bank failing which the process will not be initiated.

The disbursement will be done up to 80% of the property cost or Agreement value or Documented Value or the sanctioned loan whichever is less. Bank will disburse the outstanding loan amount which is there on the property on the vendor’s name directly in the name of the bank which has funded the loan to the vendor. The vendor need to register the property on the vendee name after closing the loan amount and post receiving the original documents from the bank and submit the registered documents in the bank which funded loan to the vendee. Post submission of the registered documents with the bank remaining sale consideration or the pending loan amount is released. It has been a best product to the Vendor’s with a liability to sell the property without any hassles. As it comes under Home Loan only all the Tax Exemptions under section 80© of income tax act are applicable on the Principal and Emi components paid to the bank.

Monday, October 15, 2012

Floating or Fixed which is the best to Opt?



 
It’s been a big myth to customers in opting the interest rate type while going for a Home Loan. Customer seeks their friends, colleagues and relatives advice that already availed a Home Loan. But still it’s been a puzzle to most of the customers how to opt and what to opt when it comes to the home loan interest rates. A little bit of understanding of the two banking terms eases the process of interest rate selection and which gives the best possible returns on the Home Loan over the period or repayment tenure.

All the home loan products are pre packed with two types of rate of interest i.e Fixed and Floating.  Fixed rate of interest is fixed for a limited period of time over the loan even if there are any fluctuations in the rates in the market. Banks will not increase or decrease the rate charged on the loan which is fixed at the time of availing the loan even if the rates comes down or goes up. Banks charge a min of 1% higher rate compared to the current prevailing rate to the customer who opts for the Fixed Rate of Interest. Post the term of Fixed the interest rate will be the rate charged on fresh loans at that time.

The Floating Rate of Interest is based on Base Rate and BPLR rates and charged according to the loan applied slabs. The floating rate can be increased or decreased if there are any fluctuations in the market. Banks revise the rates on quarterly basis on the loan amount and inform the customer about the revision of interest. If the rate is increased then accordingly the repayment tenure will be increased and if Possible banks can Increase the EMI also. 

Going for a fixed rate is better if the fixed tenure is above 3 years and taking conformation from the bank that the rate will not be revised even there are any huge fluctuations in the market makes a sense.

Thursday, September 6, 2012

Radiant Shine - Luxury apartments in bangalore

With the fresh trends in market and with the fresh technology coming up in the market it is Radiant's continuous activity to obtain and apply all those technologies to build the best residential apartments and to satisfy all those customer who trust the radiants brand for purchasing their properties in begur road bangalore.

Now radiant has come up with one of the best prestigious ventures of their company and which will be the next land mark of begur road with the mark of the best properties in bangalore to buy for a high class living. 

Radiant Shine - Properties in Begur Road Bangalore
Amenities

  • Swimming pool with toddlers pool
  • Children’s play area
  • A well equipped gymnasium
  • Indoor games room
  • Multi-purpose hall
  • Lifts
  • Generator back up
  • Round the clock security with intercom facility

Monday, August 13, 2012

Property Registration in Home Loan

It’s a very big worry to every customer on whose name they can register the property. Some customers want to register the property on their wife, mother or father’s name and will be in constant confusion whether it can be done or not. All banks do accept registering the property on mother, father or wife’s name if the sale agreement is made on their name only. It is mandatory they must be the co-applicants in the home loan application and should sign all the required documents for home loan and submit their proofs also. The amount to which the property should be registered depends on the agreement value and banks also. Some banks ask customer to register the property at market value or the loan amount availed and some banks allow customers to register the property at Govt. rates. The EMI amount will be debited from the applicant’s account but property can be on co-applicants name. At the same time applicant can take properties registered on mother, father and wife’s name as security to avail any mortgages loan from bank of financial institutions. Tax exemptions are applicable to home loans under section 80© of Income Tax Act