Why global market declined and how does it affect your loan approval process for salaried customers?
Global market on Monday saw a drastic change and most of the economy of the entire world saw a deep decline. The global market declined and the main contributor for this economic slowdown is China. The carnage began with an 8.5% drop in China’s Shanghai Composite index. Following the suit, the markets in Japan, Korea and Australia followed the same.
Chinese Market Slowdown
For the past 25 years, the Chinese Economy has been a main part of the World Economy and has a significant contributor. For the past several years, Chinese Market has been impressive and has seen a growth of 7% to 8% annually. The export-oriented development strategy which put Chinese people to work, making products for international companies are one of the significant factors for the significant contribution in the world economy. But, with inherent limits, the country with high living standards, it is becoming harder to compete with other low-wage countries. Thus, the need is to diversification of the economy, and the need to produce more goods and services for domestic consumption rather than for export.
Thus, an internally driven growth is needed within the country, which is not possible owing to different reasons. Thus, for past some years, the slowdown in Chinese market can be seen, which is in fact, the primary reason for the slowdown and yesterday’s slump was an example of the really critical situation of China.
Another reason for global market decline
Another reason for the slump can be attributed to the thing of the past. Many Western countries are still suffering an economic hangover from the 2008 financial crisis. Generally, central banks fight recessions by the process of cutting interest rates. But as both in the United States and the Europe, short-term interest rates have already fallen to zero, thus making these techniques ineffective.
Effects on loan approval process for salaried customers
With the period of uncertainty coming again in the market, the fear of losing jobs and many such crises comes again. People along with the lenders are reluctant to loans. Those people who have already applied for loans, the bank have to reassess their criteria. The reassess of whether the person can have any issue regarding the repayment of loan amount is one of the effects because of the economic slowdown. People may lose their jobs and in that condition, the EMIs along with the repayment become an impossible. Thus, banks have a fear of losing their money. Many Banks tend to take time for the approval of a loan application by playing a wait and watch game and then making a decision of approval or un-approval of loan.
Thus, with the economic slowdown, the loan rejection cases may see an upward movement, while loan application seeing the drop as people feels unsafe while taking loans.
State Bank and Project Tatkal for Home Loans
The largest bank – State Bank of India has its wide scale operations spread all over the country. With the largest networks of branches, the bank holds a high responsibility towards its customers in the delivery of the best services related to all spheres of the banking.
With this purpose, the state bank of India has launched a project named ‘Project Tatkal’, which is an initiative to provide the services at the doorsteps and accelerate the process of home loans for the people.
Benefits of the Project Tatkal
Under the Project Tatkal, the process of the Home loans will be facilitated within time gap of 10 days. As soon as the bank is in receipt of the application form and the complete documents, the process of the Tatkal loan is initiated and all efforts for the urgent disbursement of the loan amount is done. Thus, bringing the complete process to the maximum of 10 days under the ‘Project Tatkal’ is an ultimate reality. However, the implementation of this scheme is done at important centers and with the sizable home loan amount.
The State Bank of India launched this initiative on 3rd July, 2015 and with the scheme to be launched in a phased manner, the project will be rolled out across the bank branches.
Online customer acquisition solution by the State Bank of India
With the State Bank of India also introduced an online customer acquisition solution, which is famously known as OCAS. The process of an instant e-approval of home loan applications is also an option. It was launched on 28th May, 2015 prior to Project Tatkal.
The major cities of India will be the first to get the lovely benefits of the Project Tatkal. The State Bank of India is looking to facilitate a huge number of people. Thus, the State Bank of India has launched this project with the novel concept of providing Home loans to the people in the minimum time.
How to avail the scheme
Just go to the nearest branch of SBI. Make an inquiry about the Tatkal Scheme. In case, the scheme has been launched for the particular branch, submit the application through the Tatkal Scheme. Submit all the required information and documents. Wait for 10 days and you will surely get an approval and will get your loan process done within the stipulated time. Now, you can easily get the Home loans within 10 days!
The State Bank of India always stands at the forefront in introducing new initiatives for the benefits of the customers. This scheme is surely going to add more prospective customers to it and will surely be a brand booster and will be a milestone in the Home Loans.
Personal loan is not a difficult task nowadays. some time back, when bank transaction were very critical because of lack of information about approaching for loans. Many customers who are working in IT companies like TCS, Wipro, Infosys or any other companies in Hinjewadi or Magarpatta City had to go to the bank branch for any kind of personal loan application in Hinjewadi or Magarpatta city. Earlier loan was provided only by loan agents in Pune. Now the time has changed. Banks are reaching their customers online very quickly and they want to have direct relationship with them. Banks are introducing themselves directly with the customer it is creating a tough competition among the agents and DSAs. Customers are benefited in the process in the form of best offers on personal loan.
A personal loan for IT employee in Pune, a customer named Mr. Ajay Patil was working in a MNC company with a monthly income of Rs. 65 k. Mr. Patil was getting his salary credited to HDFC bank account. He had never taken any loan before that. When he came to apply for Personal loan at Dealsofloan team, the manager asked for some specific docs related to KYC norms and other financial documents. Mr. Patil provided all the documents to the bank manager and went back to home as usual. After four days bank person called Mr. Patil for an update about the loan status. “Congratulation Mr. Patil! Your loan has been approved for Rs. 3 Lacs for 36 month @ 15% reducing interest rates”. Ajay got surprised as he never thought , he would get the loan so quick. The prompt follow up of DealsofLoan sales team made it possible.
Mortgage loan interest rates definitely have enough phenomenal impact on the customer’s overall eligibility for loans. This is happening the rate of interest component can be increased the monthly EMI and it has become applicable on any new mortgage loan. Such property loan EMI is confirmed at the time of product disbursement. While any of loans EMI do not vary and after all the entire terms of mortgage against property. Searching the low property loan rates at the time of availing the property mortgage makes the customers eligible for large amount.
The USP of mortgage loan lenders in India is that it has fix criteria for which all the bankers normally consider a customer to be eligible for property loans. Bankers check about the intention, capabilities & previous credit history of the customers. Another the most common factors in all of them is the actual income of the first applicant. This total income always should be adequate or higher than the applicant’s average expenses, and other obligations which are apart from the applied mortgage loan installment. Normally somehow normal expenses vary from person to person. A customer who has more number of dependents would obviously be required to hold back more amount out of his regular monthly income than one who do not have any dependent person in his family.
eg. If the applicant is getting about Rs.15000 per month, and he has two dependents in his family, then in my opinion it would be really very difficult for applicant to get any mortgage loan in normal income program. At the same time in the same scenario for an self employed customer with same situation bank can provide mortgage loan in the liquid income program where credit team directly assess the rough balance sheet where cash income can be added back in to net profit and it goes up to three times of existing net profit. It is very easy program for secured loan segment in India. Loan against Property is the second most important loan option for any banker. This is just this because of its lower chances of default in any circumstances for any time. The customer becomes loan eligible for enough amount of property loans from any of good bank or any other financial institutes in India. At times, this margin may mean ability to purchase the dream home.
Our expert guidance will helps you to avail various loans like Personal Loan for salaried or self employed, Home Loans for all new or existing borrowers, Complete range of Mortgage Loan, low income based Business Loansetc. Also we can get you Educational Loan for higher education in India or abroad Educational. It started with a wider vision to cater various loan requirements. We have a very good bucket of product program and we take the complete responsibility of providing one stop solutions to all your loan requirements.
We are driven with motto “For easy and Quicker Loan Program in market from best banks”. We have something special and it is specifically designed for people not for bank to provide hassle free loan solutions and is equipped with the details of various loan options offered by different Bank’s in India. Deals of loan bring all the loan products to your door step by continuous efforts in staying connected with the banking world. We strive for excellence by continuous upgrading of our knowledge with latest banking policies and products.
We welcome all your financial queries and feel honored on effective addressing of your requirements of financial assistance. We really appreciate the values & believe that delighted customer is our valuable investment. We join our hands in realizing your dreams and goals by providing timely and absolute solutions to your loan facility availability. We have innovative team for customer care to focus on our daily growth that makes you stay comfortable even in your financial crisis having every hope that is ready to support you and enhance the door step services.
We facilitate you to reach those extended hands (banks and financial institutions) in your loan requirement. We have an experienced team having vast knowledge on banking practices and policies of particular product. Our entire team is 100% dedicated in relation building to address all your financial requirements on rapid grounds. We are enjoying our work and constantly engaged in pooling required information on various loan products available in Indian Banking System.
Know about Property Finance Loan:
EMI debt management or consolidation is often a key reason behind loan refinancing. In the event you find yourself wrestling around the exact EMI repaying challenges every month, it may become a great plan to obtain a new mortgage on your own existing mortgage by refinancing it. Before you do some another plan make use of the new or existing lender loan to pay for off all your lesser debts. Normally this leaves you with just one private bank loan compensation every month. Just need to think about best deal and pick a normal repayment plan which you already know you are able to tackle easily. Debt consolidation is the best option for reducing your EMI burden.
For anyone in India who is eager to save rupees by decreasing the monthly EMI load of one’s present property loan, we should find a fresh new financing plan from lowest interest rates. It may perhaps assist you to save a good sizable sum of amount and it is more cost effective if the recent mortgage loan is linked while using the variable market level from banking industry. The present interest rate is rather high as compared to new interest rates as well as the banking sector trend reveals no inclination for new or old of climbing down of market rates. If you are matured and good buyer or good borrower than you should have saved lot and it would be a great deal of funds by opting out of your property finance loan and getting it refinanced on lower cost. The whole focus should be to have a lowest and fixed-interest rate bank loan with a realistic interest rate and prefer the best bank from market while selecting.
We have seen several times when we go for inquiring a refinancing from market bank corporations fall short to mention about some standards. The whole things are linked with the money and what the actual expense of refinancing matters. Now the the time when we have got lot of option available in market like SBI, HDFC, ICICI and like that from where we can get the lowest interest rates on Loan Against Property and it could be lesser than existing rates.
Basic Fundamentals lending Interest Rates:
To understand how banks declare their interest rates, we need to know about the basic of lending cost, what is the current cost of funds. Normally lending cost as per market is approx 9% per annum and if we add some fix cost of lending then it will go up to 11% for non banking financial companies. But banks has large benefit of in house customers having huge current account base. The average minimum account balance is greater than Rs. 10,000 and it can go up to 10 lacs for some unique account. If we talk about average bank balance of current account base where bank do not need to give a single rupee against the minimum average balance maintenance. On the basis of this knowledge, we can say, bank has their own fund for lending without paying interest rates. So the average costs of interest rates are 10%, where there is negligible expense on funds distribution against the mortgage loan & Home Loan.
Comparison between Fixed Rate & Reducing Rate:
For general awareness, there are two types of interest rates available in market from financial industries.
- Reducing interest rate
- Fixed interest rates
PSU banks, private banks, co operative banks are lending reducing interest rates. Apart from these lenders, non banking finance companies like some micro finance companies are also offering reducing interest rates. So if you want to get Property Loan or another housing loan, always prefer reducing interest rates. Actually interest amount is charged on fixed principle loan amount till the outstanding reaches to zero. On the other hand if we get a loan on reducing balance than the interest to be charged will be on remaining balance principle amount rather than whole principle outstanding amount. So whenever we inquire about interest rates always ask for reducing interest rate.
Property Mortgage Rate depends on current banks or finance company base rate and their lending rates. Mortgage Loan interest rates are available from 11.5% to 18.5% reducing basis. Loan against property is the easiest way to get instant case Loan Against Property.
Equitable Mortgage Registration
Good news for all borrowers, planning to borrow a loan against your property anywhere in India as mortgage from any of bank or any other financial institution. From 1st April’13 onward it is mandatory for all borrowers to intimate the loan transaction detail to the concern registrar. Simply say this is completely something new and for the same reason I am excited to share my experience with you all.
I am using my personal example to explain easily to all viewers. Some time ago I have taken a new housing loan from well known private bank and after some time it has done a part disbursement. I got a call from bank and the person updated me that along with the bank guy I have to get some agreement papers submitted to joint sub-registrar’s office. He said, it is mandatory and it has to be done within 30 days of loan agreement done or stamp duty paid by borrower.
No need to panic Just wait a while…
Here are some important points waiting for you and I am sure it will be very helpful! You can call your advocate or any registered consultant to help you in this agreement or directly go to your local Haveli office in Pune city. I would like to let yo know that there are only three Haveli offices for joint sub-registrar where you can do your intimation of registered agreement in Pune. You can do it directly without taking any help from advocate. You just need to go at Haveli No 23 near GPO and it is opposite to BJ Medical College Girls Hostel, Pune.
The credit officer of the Loan Provider banks will give you the set of agreement documents attested by him with photographs and he will tell you to visit at joint sub-registrar office at Haveli No. 23. As the credit manager was a private bank , he will help you every time. Those people have taken Mortgage loans or housing loan from public sector banks like SBI or BOI have to do it by themselves. Please check the below given list of required documents.
- Complete filled intimation form with franked for Rs.100 and the same needs to be submitted of mortgagor duly signed by bank authorized signatory. Generally your bank can franks if not than you need to do the same from any of another banks like Axis bank, SBI, Corporation bank etc.
- Point no. 18 on the said agreement notice of form to be enclosed with duly signed and executed (franked) with copy of loan Agreement, both side accepted loan sanction letter and property Index-II copy of property mortgaged duly signed by bank official.
- Need to do self-attested identity proof, address proof (PAN Card) Copy of the designated credit officer from the bank along with company stamp.
- Need to do self-attest KYC documents (PAN Card) Copy of all the loan applicants.
So this is the complete information about Equitable Mortgage Registration for home loan/ Mortgage Loan in Pune city..
Mortgage Loan without paying EMI!
Mortgage Loan without paying EMI is the most shocking news for all. Control on default is small and rural cities in India are the biggest challenge for all banks and other financial institutions in India. RBI stands a clear instruction to all PSU banks and private banks to do light underwriting at the time of processing of any education loans application in these rural areas. The largest bank of India SBI is agreed with the RBI’s policy. Actually the motive is behind light underwriting is to serve most important financial program to all people which is very important for growing our next generation and progress of our nation.
Banks should do instant process on education loans and other agree base loan everywhere. Also the main responsibility is all borrowers should repay their loan in timely manner. Property loan is another concern in all rural places and township where the clear title is not available, property search report is also not in proper manners kind of more hurdles are there so bank a not comfortable to lend their money in to open market, so availing mortgage loan in these cities is very risky. Mr. Gaurav Sharma owner of “Maa Traders” is very renowned distributor of Vodafone ESSAR Ltd for District Bhind in Madhya Pradesh provides us the complete information about market reports.
Before you believe on this just read it very carefully and you would laugh if you come to know that there is a place in India where many people are taking loan like monthly income and they want to use the funds in to their daily life style even they do not pay a single installment of their loans, collection agency do not have sufficient manpower thus the loan borrowers are enjoying the loan as their income!
It is a common thing in some places in India where the default rate is so high and bank don’t want to take more risk in those particular areas, so most of bankers are not entertaining to new borrower application for processing new loan facility. General information of finance is not available on public domain. People are not aware about the definition default and even them just taking this very casually. Mortgage Loan without paying EMI is a biggest hurdle in the banking growth. Know more about recent changes in Loan Against Property programs.
Also know about different Loans at Get Loans Provider.
Now avail Mortgage Loan from Micro finance Companies. As we are aware about our financial market and it make in line as it starts from RBI to PSU Bank, Private Bank, Co operative bank, NBFC and other micro finance companies in India. In our life sometime we are in to urgent requirement of cash funds and at that time we try everywhere and want to get funds from anywhere. Even we are ready to borrow money against security collateral it may be our fixed asset like unmovable property like your home or commercial property.
If your property has all legal papers and have complete legal document and other permission to construction and other aspects as well as your income support ability than only you are proper eligible for getting financing from any of reputed banks and financial institutions in India. Otherwise you have to wait for any traditional money lenders. Also whether they offer loan to you or not it is completely their choice.
Microfinance Company: A finance company which has got all the approvals from RBI to run his business for rural market to cater the untouched segment of emerging India. Microfinance Company has complete infrastructure like other NBFC. Microfinance companies policy are slight flexible than any of bank and other finance company, just they do not have their own funds, they raise funds from local or foreign investors and these investors comes as equity partner. Interest rate is the challenging part of the business because they are lending funds at 18% to 26%.
The interest rate is high but they have sufficient customer base. They lend their fund against property, and even they are not doing hard credit. They do not lend high ticket size loan as mortgage maximum amount of funding is average of Rs. 25 Lacs in urban and not more than 15 lacs in rural areas. Now lots of companies are doing well in mortgage for example some of Microfinance Company in India like Vistaar Finance, Subham Housing, and Ujjivan Housing etc.
Mortgage Loan from Microfinance Companies is costly sometimes but the loan is for those customers who are not eligible from banks or reputed finance companies. It is good to get loan from anywhere instead of any private money lender because after all your valuable property involves in the transaction and it always must be in safe hand.