Home Loan Balance Transfer

Process of transferring your loan from one bank to another is popularly known as Home Loan Balance Transfer.
Interest rates and charges are as per the prevailing home loan rates and charges.

Home Loan Balance Transfer Process

  • Check if you are eligible to transfer the loan
  • Decide if you want to transfer your loan; Calculate net savings
  • Initiate and complete the home loan transfer process

Step 1:- Who is eligible for Home Loan Transfer?

  • Individuals within the age of 21 to 65 years
  • Borrowers with a running home loan, on which 6-12 EMIs have already been paid
  • Borrowers with no history of default or delays in EMI payments on existing home loan

Step 2 :- How to calculate the savings on Home Loan Balance Transfer?

Calculate net savings on home loan transfer using MyLoanCare’s Balance Transfer Calculator

Benefits – Savings on interest expense by switching to lower interest rate loan

Cost –

  • Prepayment charges, if applicable, to be paid to existing bank
  • Processing fees and other legal/technical charges to be paid to new bank

Savings – 

Net Savings = Benefits – Cost of loan transfer

Net Savings = Low or Negative, Don’t Transfer

Net Savings = Positive, Transfer Your Loan Today

Step 3 :- How to transfer your Home Loan?

  • Compare and select the best home loan bank offer at www.myloancare.in.
  • Apply online for home loan transfer to the new bank at www.myloancare.in.
  • Request for a No Objection Certificate (NOC) and foreclosure letter to your existing bank.
  • Submit KYC, income, property and loan statement to the new bank for appraisal.
  • Sign loan agreement and pay processing charges after receiving sanction from new bank.
  • New Bank to disburse the outstanding loan amount to your existing bank.
  • Existing Bank to transfer the custody of your original property documents to new bank.
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Top 5 questions to ask from your home loan service provider

A house is the most valuable asset in everyone’s life. If you’re planning to take a loan for the same, then it is good to know about your loan’s term and conditions before you sign the dotted lines:

Here are some tips for the same:

Rate of interest: Rate of interest will depends upon loan amount, your profile, your property type, it’s market value and prevailing market interest rates. Hence you must check applicable rate of interest from multiple banks before you finalize the same. Check Home Loan Interest Rates in India.

Lender type: Is your lender a bank / NBFC. Banks rates are based on base rate. However NBFCs rate are based on PLR (Prime Lending rates).

Rate Spread: In case of floating rate loans, the applicable interest rate is sum of base rate (decided by bank) and spread. Hence whenever base rates are changed, applicable rates are automatically changed (in fixed spread cases). Hence one must know the spread being offered by bank and spread type (is it fixed or variable)

Processing Fee: Depending upon the loan amount and customer profile, some lenders are ready to negotiate the processing fee. Hence, we highly recommend negotiating hard on this before finalizing the deal.

Pre-payment / Part payment penalties: In case of floating loans, generally there is no penalty for pre-payment and part payment. However it is better to get it clarified from the lender. Also in case your loan is fixed for some time, it is highly recommended to know about the penalties before-hand.

 

Enjoy Year End discounts on Loan against Property

We all know how useful loan against property is for getting easy cash to grow your business or realize your other dreams. Here is one more reason for you to look at availing loan against property in March 2015 in case you need money.

Banks are offering exciting discounts on mortgage loans to meet their year-end disbursement targets and also passing on the benefit of recent repo rate cut by the RBI.

Loan against property calculator-MyLoanCare.in

Banks are keen to grow their loan base as the financial year draws to a close. As banks compete with each other to get customers, they are willing to offer lower interest rates and processing fee discounts like never before. Some of the key offers available in the season are:

  • Loan against property starting at 11.50% per annum compared to card rates of over 13% from leading banks
  • Overdraft facility at 11.60% – 12.0% vs. normal rates of over 13%
  • Tenure Upto 18 years from NBFC’s and Upto 15 years from banks
  • Lowest EMI of Rs. 2199 per month per lakh
  • Processing fee discounts of Upto 75%, with offers available at 0.25% compared to cards rates of over 1%

Best part in 2015 is that there are no prepayments or foreclosure charges on floating rate loans sanctioned to individuals.

What Purpose can loan against property money be used for?

  • Growing your business
  • Renovation of your home
  • Children’s education and marriage
  • Medical treatments
  • Vacation and entertainment
  • Buying another property
  • Repaying higher cost personal loans and credit card loans

What are the key features of loan against property?

  • Loan available against any registered freehold commercial property or loan against personal property
  • Loan tenure Upto 15 years; can extend to 18 years on some cases
  • Easy and fast processing – typically 7-10 days
  • You can get Upto 75% of market value of residential property and Upto 55% of market value of commercial property
  • Low interest rates starting at 11.50% in offer period, else 13% plus

Compare the Loan against Property Interest Rates?

How to take the best loan against property at lowest interest rates, lowest EMI and lowest processing fee? Simply logon to MyLoanCare.in  and you can check out the latest offers or speak with a loan advisor. No charges.

Documents Required for Loan against Property :-

  • Residence and identity proof of the person who is taking the loan
  • Last 6 month salary slip for salaried people and business proof and certificate for businessmen
  • Last 6 months bank statement
  • Completely filled loan application form and a passport size photograph
  • Property title documents

MyLoanCare.in brings the loan against property and enables the loan borrowers to unlock the value of their property. You can mortgage any commercial, residential, or any other property to complete your financial requirements.

 

Procedure and Cost of Breaking Fixed Deposits before Maturity

Fixed Deposits are one of the most popular savings products in which an investor deposits lump-sum amount for a fixed period of time at a fixed rate of interest. What is important to understand is that while the interest rates may fluctuate, the interest rate on your fixed deposit will stay locked at what it was at the time of opening the account.

There may emerge several situations, where the investor may need to break his fixed-deposit ahead of its maturity date. These situations are typically emergency situations, where the investor requires immediate liquidity for personal or business needs. An investor may also be tempted to break the FD in a situation where prevailing interest rates on Fixed-Deposits are much higher than the rate at which he created the Fixed Deposit and hence, the investor wants to move to a higher rate FD account.

Fixed deposit

However, while RBI regulations allow customers to break their FDs pre-maturely, it also allows banks to charge penalty from their customers on breaking FDs before maturity. Typically, in a bid to discourage customers from breaking pre-mature fixed deposits, banks may charge a penalty of 0-1% on the applicable interest rates. Some banks even go to the extent of allowing interest rate equivalent to the prevalent rate of 1 year FD even on FDs of longer tenure, in case of pre-mature withdrawal.

The difference between 1 year FD and five year FD can be high as 3 percentage points, thus resulting in a significant loss for the investor. Some banks also prescribe minimum lock-in-period of a few months to a year, before which breaking of a Fixed Deposit is not allowed.

Hence, an investor, while taking a decision to break a deposit needs to calculate the associated costs. In normal circumstances, it shall be advisable to limit the decision to break Fixed Deposits to a situation of dire emergency or to a situation where the investor expects to return a higher return on the funds realized from breaking a FD even after incorporating the associated penalties on pre-mature withdrawal.

The customer may also evaluate the option of taking Loan against FDs if he needs funds only for a brief period of time and is not too keen to pay a heavy penalty on breaking his FDs.

Once you decide to break a FD, the process of breaking the fixed deposits is pretty simple and quick. There may be minor variations in the procedure for PSU and private banks or for FDs created online vs. offline.

At the time of creating a fixed deposit, banks issue a receipt of fixed deposits against which you can get a fixed deposit certificate issued from a bank. You can use the same deposit certificate to request the bank officials to break your Fixed Deposit.

You will need to write an application mentioning the reason to break your fixed deposit along with your account deposit number. You will also need to fill the form for pre mature withdrawal of FD.

Further to this, the bank officials can process this request immediately by clicking on a reversal entry in their system.

In case of fixed deposits created online from your internet banking account, majority of the banks would allow online breaking of your Fixed-Deposit.You need to go to the “service request” section of your net banking and can fill a request to break your fixed deposit before maturity online in the Fixed-Deposits section. For the banks which do not provide an option of online withdrawal, you will need to follow the process of offline breaking of Fixed-Deposit as mentioned above.

 

 

5 Credit Card Precautions to Protect Your CIBIL Score

Worried about the safety of your credit card? Heard about how a small mistake by your friend while using his credit card cost him dearly?  Concerned about not being able to get a loan with a low CIBIL score in case your credit card is stolen and misused?

Protect Your CIBIL Score

Relax. In today’s time and age, using a credit card is no more a luxury but actually a necessity. So, don’t worry and no need to stop using your card. You just need to take some basic care and take five basic precautions that will help you avoid a low CIBIL score:

1. Keep your password and PIN secure:-

The Reserve Bank of India has mandated that all online and offline credit card transactions in India must be authenticated by password and PIN or one time password (OTP). So, your credit card cannot be used in India for making a fraudulent credit card transaction online or offline unless someone hacks your password and PIN.

Read more:-

In India, we come across a very strange instance of people using credit cards at fuel pumps. Nothing wrong with it except that some people just don’t want to step out of the car and actually tell the PIN to the petrol pump attendant instead of feeding it into the machine. Now, if the pump attendant fraudulently clones the card, he can easily misuse it at any merchant location. Blame for this misuse clearly lies with the user and not with the bank.

2. Avoid transacting on international websites:

As regards the requirement for a PIN or OTP, there is a catch. This requirement is not valid for credit card transactions outside India or online on websites hosted outside India. So, it is possible that someone may use your credit card on one of these foreign merchant locations or websites hosted outside India if he/ she know your credit card number, expiry date and CVV. As a precaution, avoid making transactions on global websites that do not ask for the PIN or OTP.

One simple solution is to prefer RBI’s NEFT and RTGS modes for transferring money in India and SWIFT for international transfers. These can be accessed from your netbanking account and are fast and safe at the same time.

3. Keep your CVV number secure:-

CVV is a three digit number printed on the back side of the credit card next to the card number above the signature strip. Most websites require the user to enter the CVV number so as to ensure that the user actually has the credit card and is not just using a stolen credit card number. Banks recommend that the CV number be memorized by the user and then scratched off the card surface. The problem is that with multiple cards and so many other passwords to remember, this is easier said than done.

However, some merchant websites may not ask the user to enter the CVV number. So, take care that the site you are transacting on takes CVV verification in addition to the card number an expiry date.

4. Prefer chip based cards as opposed to magnetic strip based cards:

Now, what’s this? Let us explain. Actually, the front of the card which has your name, card number, expiry date and in some cases, a photo, has no machine readable authentication details. In earlier days, cards used to be recognized by the black colour magnetic strip that you see on the back side of the card. The problem with the magnetic strip is that it (or more precisely, the authentication data on the strip) can be duplicated and copies on to another similar magnetic strip using some simple readers.

Nowadays, banks also offer a more secure form of card which comes with a EMV chip as opposed to a magnetic strip. The chip contains the authentication data and the benefit is that the data on the chip cannot be copied unlike a magnetic strip. OK, we stand corrected. Impossible is nothing. So, data of chip is far more difficult to copy as opposed to that on a magnetic strip. So, prefer cards with chip as opposed to strips.

5. Place your signature on back of credit card:-

Why do banks have signature strip at back of the card? This is to ensure safety of transactions at physical merchant locations. The teller or the salesperson accepting payment by credit card is expected to get your signatures on the payment slip and match those against those on the back side of the card. Any mismatch between the two will lead to suspicion and the merchant may either deny the transaction or insist on further verification from the concerned bank.  The bank may call up the actual customer on his registered contact number and manually authenticate the transaction. In case no signature is placed on the card, technically the card is invalid. However, as opposed to looking at this as a rule that you must follow, consider this as a safety feature for your own good.

 

3C’s of Credit and Why a Wrong Credit Report is A Problem

Even before people start earning, they get introduced to the world of 3C’s – “credit reports” and “credit scores”, kept by the 3 “credit bureaus”. Why these 3C Are’s important and what control can you exercise to ensure you keep these 3C’s on good terms. For you to get the best credit terms on your mortgage or auto loan or even credit cards, you must take care of these 3C’s.

Main job of credit bureaus, Experian, Equifax and TransUnion, is to keep a track of each person’s past credit history and after that create a report and generate a score from that collected data. So, your past financial history such as payment track record of your credit card, loan (home loan mortgage, auto loan, or any other type of loan), your repayment history and total number of time you have sought credit is recorded in a single report, a “credit report”, and the first C. On the basis of this information a score is generated, called the “Credit Score”, the second C.

3C’s of Credit and Why a Wrong Credit Report is A Problem

Finally, this data is shared with banks and other lenders by the third C, the “credit bureau” on their request. When you approach a lender for a new loan or even renewal of an existing facility, the first thing they do is to access your 2C’s from the third C. Only then would they decide whether to extend you credit and if yes, at what terms.

This idea looks perfect because the system ensures that there is extensive record keeping of a person’s credit behaviour and this useful data can help the banks and lenders take effective credit decisions. But the problem starts when your credit report is messed up not because you defaulted on some payments but because somewhere in the system, the record keeping was not correct.

What are wrong credit reports and how they are destroying the financial lives of people?

From the past couple of years, we have been hearing plenty of horror stories that how many financial lives have been destroyed due to wrong data in their credit reports. How can you as an individual ensure that the data in your credit report is 100% correct?

First, let us tell you why this is a problem you must care about:

Suppose you are a student who wants to take an education loan and when you apply for the loan, bank rejects the loan application as they are unable to find your credit history – perhaps because you have never availed a loan or credit in the past.

Another situation could be when a person applies for a home mortgage but the bank rejects the loan application because the credit report carries an outstanding dues entry for a credit card which you have already closed many years ago.

Reasons for wrong data in the credit reports:

It is not as if someone is playing mischief with you. It’s just that the data in a credit report is pulled from multiple sources which are incorrect themselves. Unfortunately, this is a system fault but its effects are often faced by the individuals and not the credit bureaus or banks that generate and maintain this data.

Other major problem is delayed communication between the bank and the credit bureaus.

3 things to do to keep the 3 Credit C’s in good health:

First and foremost, you must periodically check your credit reports by availing the free report entitlement and check that the data is correct.

Secondly, if you are likely to need a significant loan in the future, start building your credit history by availing small loans or credit cards.  Remember to be regular with your payments against these loans and cards.

Thirdly, ensure that you are not a victim of an identity theft or identity fraud where some unauthorized person avails credit from banks masking his own identity with yours. Such loans will appear in your credit report and must be notified to the bank and the credit bureau immediately on being sighted.

By practicing these three, you can ensure that you avoid the consequences of wrong credit reports and you maintain a healthy credit score at all times.

 

Free CIBIL Score Calculator: Creditscore-creditreport.com

CIBIL Score always important for any person who wants to take a loan. Loan can be car loan, vehicle, loan, education loan or personal loan. Basically, CIBIL scores calculated taken into account various algorithm by some of the top credit agencies. Some of them are Highmark, Experian, and Equifax. Credit score for each past loan applicant are available both online as well as offline. For getting credit score, a loan applicant has to spend some money from his/her pocket.

Sometimes, people simply want to check their CIBIL Score before applying for a loan. In case you are looking for a best CIBIL score calculator, use our CIBIL score calculator for free of cost.

Free Credit Score Simulator

How to Calculate CIBIL Score :

  1. The very first thing for calculating CIBIL score for home loan, you need to select the total number of loan which you currently have.

2.Enter, any one number from ‘1’, ’2’, ’3’ and fill some important details such as “Current amount overdue”, “when did you last miss or delay an EMI”.

  1. In the 3rd step, you need to select the closed home loan among the number 1, 2, or 3.
  2. In the 4th step, select the “closure status” and “written-off/disputed amount” and click on Next button.

Now, Vehicle loan may be select automatically.

  1. Again, follow all the steps which we have do in case of home loan and hit the Next button.
  2. Complete all these steps “credit card” option be selected.
  3. In the credit card option, fill-out some data like “Currently running credit cards”, “closed credit cards” and personal details such as Name, Email address, phone number, location and hit the Submit button.

Once submitted, our free CIBIL Score calculator immediately calculates your complete CIBIL Score.