Home Loan Protection

A home loan is a sum of money borrowed from a bank or a money lending firm at a fixed interest rate and paid back monthly with an Equated Monthly Instalment (EMI). Yes Bank, one of the country's leading private banks, has reduced the interest rate on home loans. The Yes Bank's Home Loan allows you to pursue your dreams without having to worry about money. They offer a variety of loan terms and competitive home loan interest rates to help one achieve their financial goals. The Yes Bank provides appealing home loan options at competitive interest rates, as well as a wide range of loan amounts and terms.

Features 

• The interest rate on a Yes Bank home loan starts at 8.95 percent.

• The Yes Bank charges a processing fee of up to 2%, with a maximum of $15,000 per transaction.

• The Yes Bank's lowest home loan EMI calculator per lakh on a home loan is Rs.836 per lakh, with the lowest interest rate of 8.95 percent and a loan term of 25 years.

• On floating rate loans, Yes Bank makes prepayment with no penalties.

• Extended loan terms of up to 35 years are available.

• The process of documentation is simple.

• Processing time is fast.

• Balance Transfer and Top-Up Facilities are also available.

• Service at Your Door.

• Individualized strategies for self-employed people are offered.

Eligibility

• The age limit must be about 23 to 60 years.

• Income - 

• Salaried: Rs. 25,000 per month.

•  Self-employed: Rs. 4 lakh per annum.

• Work Experience -  

• Salaried: 2 years.

• Business stability/Self-employed individuals: 2 years.

• Loan Amount is about Rs. 10 lakh to Rs. 5 crore.

Eligibility Criteria for the PMAY-

• The house should ideally be purchased in the name of a female household head or in the joint name of the male household head and his wife.

• The beneficiary family does not own a pucca house in India in the name of any of their members.

• In the cases of married couples, either partner or both would be liable for a single subsidy if they own their home together.

• The beneficiary family must not have received central assistance under any other Government of India housing scheme or any benefit under any other PMAY scheme.

Documents Required-

• Complete loan application has been completed and is the size of a passport. 

• Proof of identity - Passport/License/Voter Driver's ID/PAN.

• Proof of residence - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport .

• Business evidence such as VAT/service tax registration, company incorporation details, business address proof, profit and loss account, and balance sheets approved by a CA, a copy of partnership deed, and evidence of business life and profile.

• Property Documents - Title Chain in the Past: Conveyance deed, sales deed, allotment letter, copy of an authorized plan for construction/extension, possession letter, most recent property tax receipt.

Conclusion:

Home loan by Yes bank provides a home security plan to ensure the applicant's property is protected. You are able to include your spouse or family member also as co-applicant for the loan. All co-owners of the house, on the other hand, should be co-applicants. You can get a loan for around Rs.10 lakh as the minimum amount. If you are eligible, you can connect your home loan to the PMAY (Pradhan Mantri Awas Yojana) scheme. You have the option of switching from fixed to floating interest rate loans and vice versa. Part prepayments assist you in reducing the remaining loan balance, which reduces the amount of interest due. Paying the same Home Loan EMI after making part payments would raise your contribution in the principal sum, allowing you to repay the loan faster.

Various Benefits of Home Loan

In any loan that a borrower or customer is sanctioned with, it is common for them to expect various types of benefits associated with the type of loan they have been granted with. So today, let us see some of the benefits that are associated with home loans and how people can enjoy these benefits.

First before directly looking at the various benefits of a home loan let us understand the simple procedure behind the home loan. The home loan is just like the other loans which are opted for by the people who are in need and require a certain amount of money for their purpose related to their homes and houses. There can be various requirements that are associated with their houses such as for the purpose to renovate or any other types of improvements, for the construction of a new house, or it might be as simple as a loan to take and move ahead in search for a nice house. So this way home loans are not just restricted to one purpose and it is totally up to the borrowers and the customers wish to avail of the house loan for anything they wish to fulfill in their lives related to the house. Now this itself can be considered to be one of the biggest benefits that people can enjoy when they wish to take up a home loan.

One thing which most people are not willing to pay is the taxes that are associated with almost everything in today’s world. So to make this easier for the public, the Indian government has made it a point to reduce the amount of tax that is related to that of the home loan. This is nothing but, the principal amount that is to be paid by the borrower or the customer is reasonable enough with a certain amount of tax deduction associated with it. So this way, the borrower and the customer can concentrate more on their saving rather than worrying about the amount that goes for paying up all the taxes to the government. But one important thing to make a note of is that this tax reduction is only implied after the full construction of their respective houses is done. So the houses which are under construction cannot enjoy the tax reduction policy of the Indian government and should pay accordingly.

One more biggest advantage is that, for instance, if a borrower has taken the first home loan under Yes bank home loan, and then the second time also if he avails for the home loan for his or her second house, he or she is eligible enough and has all the rights to claim for the reduction on the tax for the entire house loan interest rate amount and can equally enjoy the total tax deduction benefits to the fullest. This way, the tax reduction policy works more than well enough for the second home loan that the borrower or the customer opts for.

Home loans have the benefit that a borrower or a customer can enjoy without paying a single penny for any of the prepayment charges the lending institution like banks ask for. Home loans are unique in this way when compared to other types of loans which charge the borrowers and the customers with some of the other kind of prepayment fees which might be a waste for the borrowers and the customers. But one more point to make a note of in relation to the prepayment charges is that in case of a borrower or a customer opts for the floating type of interest rate for their home loans, then they would be subjected to pay a certain amount in the name of prepayment fee that is requested by the lending institutions.

As home loans have these monthly repayments in the form of installments it is very easy for the borrowers and the customers to make their payments without missing their last due dates and hence most of them opt for the home loans which are easier for them to fulfill their dreams in building or moving into their dream houses.