Home Loan


What is Home Loan?

“The nature of helping each other make the country and society progress”. “GHAR” i.e home is the basic necessity and inevitable need of any human being and everyone is having a DREAM to have one of its own but sometimes that dream becomes a nightmare because of lack of availability of funds.

There are financial institutions in the country who help these people in funding their financial needs. This type of credit extended by the financial institutions is known as “HOME LOAN”

Benefits of availing Home Loan:

  • Principal repayment deduction u/s 80C of Income Tax Act, 1961 upto Rs. 1,50,000
  • Interest repayment deduction u/s 24(b) of Income Tax Act, 1961 upto Rs. 2,00,000
  • Subsidy under Pradhan Mantri Awas Yojana upto Rs. 2,67,000
  • The value of property increases day by day so owning a house helps in Capital Appreciation and reduction of rental cost

Documents required for Home Loan:

Identity Proof (Any two) Address Proof (Any two)
PAN Card (Mandatory) Utility bill (Example: Electricity bill, Telephone bill etc.)
Aadhaar Card Aadhaar Card
Passport Driving Licence
Voting Id Card Rent Agreement
Driving Licence Lease Agreement

Passport

Property Documents:

  • Copies of all property documents that can establish the chain of ownership for the past 30 years
  • Encumbrance certificate for 30 years
  • Property tax paid receipt in case you reside in the property being mortgaged

Other Documents:

  • Loan Application form duly filled and signed
  • Passport size photographs of applicant and all co-applicants
  • Signature proof

Financial Documents:


For Salaried:

For Self-Employed:

Salary slip of last 6 months.

IT Return of last 3 years along with copy of Profit & Loss A/c and Balance Sheet.

IT return of last 2 years.

GST Registration Certificate

Form 16 of latest Financial Year

Business Establishment Certificate

Banking of last 6 months

Banking of last 12 months.

Partnership deed in case the business is a partnership firm.

Certificate of Incorporation in case of companies

Other charges of Availing Home Loan:

  1. Processing Fees: Processing fees generally ranges between 0.25% to 2.00% of loan amount. Some financial institutions charge flat processing fees irrespective of the loan amount
  2. Insurance: Both types of Insurance is to be taken by the applicant i.e Life Insurance for self and General insurance of the property to be purchased
  3. Foreclosure Charges: Generally, there are no foreclosure charges after completion of six months of loan. Rest it all depends on the financial institution
  4. Pre – Payment Charges: Generally, there are no foreclosure charges after completion of six months of loan. Rest it all depends on the financial institution

Frequently Asked Questions (FAQ’s)

1.Why should one avail home loan facility?

Repaying all the cost of owning house at a single go reduces the wealth of the person and the person remains deprived of the benefits which it can avail by accessing the credit

2. What is the maximum loan amount any applicant can get?

Generally Financial Institutions funds 75% to 90% of the property value. Rest amount is to be contributed by the owner of the house.

3. What is Encumbrance certificate and from where it can be obtained?

Encumbrance’ refers to any liability that is created on a property. An encumbrance certificate (EC) for a specific requested period, is a note of all the registered transactions pertaining to the property for that period. This certificate can be obtained from the sub-registrar’s office, where the property is registered.

4. Why an encumbrance certificate is required?

Encumbrance certificate is an assurance that the property to be purchased or sold, is free from any monetary or legal liability, such as a loan that has not been cleared, or a mortgage on the property.

5. What is the maximum tenure for which home loan can be availed?

Home loan is received for maximum tenure of 30 years subject to maximum age of 65 years for self-employed and 60 years for salaried employees

6. What are the different types of interest rates?

(i) Floating Interest Rate:

In this type interest rate charged by financial institutions is MCLR+ Spread.

MCLR is Marginal Cost of Lending rate i.e the cost of funds for the financial institutions and Spread is additional cover charged by financial institutions as per the customer’s profile.

The change in Floating Interest Rate is dependent on RBI’s change in Repo Rates.

(ii) Fixed Interest Rate:

In this type interest rate is fixed for the whole tenure of loan. Fixed Interest rate is usually 1.50% – 2.00% higher than Floating Interest Rate.


personal loan lendingpitstop.com

Personal Loan


What is Personal Loan?

Unsecured Loan given by financial institutions to the customers for their personal needs is “Personal Loan”. The customers need not disclose the needs and the end use of funds.

As Personal Loan is a type of Unsecured Loan, the interest rate ranges between 12.50% to 18.00% depending on the customer’s credit history.

Benefits of Personal Loan:

  • No collateral is required as personal loan an unsecured loan
  • Financial Institutions doesn’t ask for or monitor the end use of funds
  • Easy processing of application due to minimal documentation
  • Tenure personal loan ranges from 12 months to 60 months
  • Creditworthiness of the borrower is evaluated on the basis of its credit score, income, employment type etc.

Eligibility deciding criteria for Personal loan:

  • Applicant’s age should be between 22-59 years
  • Applicant should have a minimum salary of Rs. 15,000 per month
  • Decent credit score

Documents required for availing Personal Loan:

Identity Proof (Any two) Address Proof (Any two)
PAN Card (Mandatory) Utility bill (Example: Electricity bill, Telephone bill etc.)
Aadhaar Card Aadhaar Card
Passport Driving Licence
Voting Id Card Rent Agreement
Driving Licence Lease Agreement

Passport

Other Documents:

  • Loan Application form duly filled and signed
  • Passport size photographs of applicant and all co-applicants
  • Signature proof

Financial Documents:


For Salaried:

For Self-Employed:

Salary slip of last 6 months.

IT Return of last 2 years along with copy of Profit & Loss A/c and Balance Sheet.

IT return of last 2 years

GST Registration Certificate.

Form 16 of latest Financial Year

Business Establishment Certificate.

Banking of last 6 months

Banking of last 12 months

Employment Certificate from current employer

Charges for availing Personal Loan:

  • Processing fees for personal loan ranges between 1% to 2%
  • Foreclosure and pre-payment charges varies from financial institutions to financial institutions

Frequently Asked Questions:

1.What is the maximum funding I can get in personal loan?

The range of funding varies from customer to customer on the basis of their credit evaluation. Financial Institutions lends personal loan starting from Rs. 15,000 to Rs. 20,00,000.


loan against property lendingpitstop.com

Loan Against Property


What is Loan Against Property?

Customers can get financing from financial institutions by mortgaging their property. This type of financing is known as “Loan Against Property” (LAP).

Customers can mortgage any type of property be it institutional or industrial property, residential property, or any plot of land. The amount of loan on such property ranges between 50% to 75% of property value (also known as Loan to Value ratio).

Benefits of LAP:

  • Used for business expansion purpose
  • For meeting immediate financing needs (like working capital need), LAP can be availed
  • LAP can also be used for renovation of house, expansion of house, etc.
  • Interest rate on LAP is lower than Personal Loan as LAP is a secured type of loan

Documents required for LAP:

Identity Proof (Any two) Address Proof (Any two)
PAN Card (Mandatory) Utility bill (Example: Electricity bill, Telephone bill etc.)
Aadhaar Card Aadhaar Card
Passport Driving Licence
Voting Id Card Rent Agreement
Driving Licence Lease Agreement

Passport

Other Documents:

  • Loan Application form duly filled and signed
  • Copies of all property documents that can establish the chain of ownership for the past 30 years
  • Encumbrance certificate for 30 years
  • Property tax paid receipt

Financial Documents:

For Salaried:

* Salary slip of last 6 months.

* IT return of last 3 years.

* Form 16 of latest Financial Year.

* Bank statements of last 6 months.

* Employment Certificate from current employer.
For Self Employed:

* Registered Partnership deed (in case of partnership firm)

* Memorandum of Association (MOA) / Articles of Association (AOA) (in case of companies)

* Latest shareholding pattern (in case of companies).

* Last 2 years financials with Audit report.

* Last 12 months banking of all bank accounts.

* Repayment Track Record (RTR) of existing loans, if any.

* Property documents.

* Shop Establishment Certificate.

* GST Registration certificate.

* Declaration that borrower, Company or any of its Directors have not been debarred / blacklisted / penalized by any Stock Exchanges / SEBI/ RBI (in case of listed companies)

Eligibility for availing LAP:

  • If the applicant is salaried, then he/she should be having minimum job experience of 3 years
  • The self-employed applicant should have minimum business experience of 3 years
  • The age of borrower at the time of application should be above 21 years

Interest & Other Charges of LAP:

  • Interest rate on LAP ranges between 10% to 14%
  • Processing fees ranges between 1% to 1.5% of the loan amount
  • Prepayment charges upto 2% of outstanding loan amount
  • It is compulsory to take the insurance of the property mortgaged

Purpose of availing LAP:

  • Business Expansion purpose
  • For meeting short term working capital requirement
  • Renovation of home
  • Expansion of home
  • Medical emergency
  • Personal purpose

business loan lendingpitstop.com

Business Loan


What is Business Loan?

Funding done by financial institutions to borrowers for financing their business needs so that their business run smoothly is known as “Business Loan”.

Why Business Loan?

The growth of nation building is in the hands of MSME (Micro, Small & Medium Enterprise) which contributes ~6% in manufacturing GDP & ~25% of service sector GDP. MSME produces ~45% of total Indian manufacturing output. MSMEs accounts for 16% of bank lending.

Due to recent changes in macro economic scenarios and implementation of new laws like GST in business world, the requirement of finance has increased multiple times. We as a team are committed in helping such business houses to avail the credit facility so that lack of finance never becomes hindrance in their business growth.

Benefits of Business Loan:

  • Easy to avail as it involves minimal documentation
  • Flexible repayment options
  • Loan amount ranges from Rs. 50,000 to Rs. 1 Crs.
  • Business loan is a type of Unsecured loan
  • Deduction of interest repayment on loan amount under Income Tax Act, 1961

Documents required for Business Loan:

Identity Proof (Any two) Address Proof (Any two)
PAN Card (Mandatory) Utility bill (Example: Electricity bill, Telephone bill etc.)
Aadhaar Card Aadhaar Card
Passport Driving Licence
Voting Id Card Rent Agreement
Driving Licence Lease Agreement

Passport

Other Documents:

  • Loan Application form duly filled and signed
  • Passport size photographs duly signed across
  • Signature proof

Financial Documents:

  • Registered Partnership deed (in case of partnership firm)
  • Memorandum of Association (MOA) / Articles of Association (AOA) (in case of companies/LLP)
  • Board resolution from Companies or LLP
  • Latest shareholding pattern (in case of companies/ LLP)
  • Last 2 years financials with Audit report
  • Last 12 months banking of all bank accounts
  • Repayment Track Record (RTR) of existing loans, if any
  • Shop Establishment Certificate
  • GST Registration certificate
  • Declaration that borrower, Company or any of its Directors have not been debarred / blacklisted / penalized by any Stock Exchanges / SEBI/ RBI (in case of listed companies)

Interest rate & Charges:

  • Processing fees ranges between 1% to 2% of the loan amount
  • Interest rate ranges between 12% to 24%

car/vehicle loan lendingpitstop.com

Vehicle Loan


What is Vehicle finance?

Everyone has a dream of having “Khud ki Gaddi”. For fulfilling such dream, financial institutions fund the needs of such customers. This type of loan is known as “Vehicle Loan”

Benefits to avail Vehicle Loan:

  • Deduction of interest paid on loan under Income Tax Act, 1961 if vehicle purchased in name of business
  • No need to pay upfront the hefty price of vehicle
  • EMI option available

Documents required for Vehicle Loan:

For Salaried: For Self-Employed:

* Salary slip of last 6 months

* IT return of last 2 years

* Form 16 of latest Financial Year Banking of last 6 months

* Employment Certificate from current employer
* IT Return of last 2 years along with copy of Profit & Loss A/c and Balance Sheet

* GST Registration Certificate.

* Business Establishment Certificate.

* Banking of last 12 months

Other Documents:

  • Loan Application form duly filled and signed
  • Passport size photographs duly signed across
  • Signature proof

Financial Documents:

For Salaried: For Businesses:

* Salary slip of last 3 months.

* IT return of last 2 years.

* Form 16 of latest Financial Year.

* Banking of last 3 months.

* Employment Certificate from current employer

* IT Return of last 2 years along with copy of Profit & Loss A/c and Balance Sheet certified by CA.

* GST Registration.

* Certificate Business Establishment Certificate.
Banking of last 12 months.

* Partnership deed in case of partnership firm.

* MOA and Board Resolution authorising one director to execute the agreement in case of company

Eligibility Criteria for availing Vehicle Loan:

  • Minimum monthly income should be Rs. 15,000
  • Employment stability of atleast 1 year
  • Minimum age at the time of application should be 21 years

Interest rates and Charges:

  • Processing fees ranges between 0.75% to 1% of the loan amount
  • Interest rate ranges between 10.75% to 14%
  • Prepayment charges varies from financial institutions to financial institutions

education loan lendingpitstop.com

Education Loan


What Is Education Loan?

The baton of good future of any country is in the hands of its youngsters which is possible not only through good but quality education.

As per the census, ~48% of Indian population belongs to lower income group and ~46% of population belongs to lower-middle and middle-middle class group. This means that children of majority of population in the country remains deprive of good and higher education. Due to such poverty like situation baton holders of country start doing labour work so as to become helping hand in their family.

We, as a team are committed in helping such families so that not a single deserving child remains deprived of higher education. We help these baton holders in getting “Education Loan” for their higher studies from different financial institutions.

Why Education Loan?

The standard of living is continuously increasing day by day. The proportion of private institutions is increasing at a faster pace than government institutions because of increasing demand for quality education. For funding such increased cost of education, financial institutions have come up with a product called “Education Loan”.

In this product of Education Loan, financial institutions funds for tuition fees, living expenses, hostel fees, mess fees, laptop expenses, travel expenses, etc.

Benefits of Education Loan:

  • Reduction in financial burden of parents as they need not pay the whole cost in one go
  • Financial institutions give moratorium period for the course duration during which the parents need not to pay anything.
  • The interest paid on education loan is deductible under section 80E of Income Tax Act, 1961 for period of 8 consecutive years.

Eligibility for Education Loan:

  • Student must be resident of India
  • You should fall in the age bracket defined by the respective financial institution
  • You need to apply to a recognized college/institution
  • Co-applicant who has a regular source of income

Documents required for applying for Education Loan:


For Salaried:

For Self-Employed:

Salary slip of last 6 months

IT Return of last 2 years along with copy of Profit & Loss A/c and Balance Sheet.

IT return of last 2 years

GST Registration Certificate.

Form 16 of latest Financial Year

Business Establishment Certificate.

Banking of last 6 months

Banking of last 12 months

Employment Certificate from current employer

Other Documents:

  • Loan Application form duly filled and signed
  • Signature proof
  • Passport copy in case of abroad education

Educational Documents:

  • SSC, HSC, Graduation, Post-Graduation degree certificate
  • Admission Letter/CAS/i20 if applicable
  • Test Score of entrance exams such as GMAT, GRE, TOEFL etc.

Financial Documents of Co-Borrower:

For Salaried Co-Borrower:
*Salary slip of last 6 months.

* IT return of last 2 years.

* Form 16 of latest Financial Year.

* Banking of last 6 months.

* Employment Certificate from current employer
For Self-Employed Co-Borrower:

* IT Return of last 2 years along with copy of Profit & Loss A/c and Balance Sheet certified by CA

* GST Registration Certificate.

* Business Establishment Certificate.

* Banking of last 12 months of all Savings A/C and Current A/C.

* Professional Qualification certificate (if co-borrower is self-employed professional)

* KYC of Partnership firm & Partnership deed (if co-borrower is partnership firm)

* KYC of company, MOA & AOA, Shareholding pattern attested by CA (in case co-borrower is company)

Documents required If co-borrower is NRI

For Salaried NRI Co-Borrower:

* VISA stamped passport.

* Copy of work permit.

* Salary slip for 3 months and salary account of latest 6 months.

* Updated bank statement of NRE/NRO account of latest 6 months.

* Copy of CDC of 2 months for Merchant Navy.

* Copy of card of POI/OCI for person not having Indian passport.

* 2 years of employment proof abroad with latest contract copy.

* Residence proof of abroad & India.

* Power of Attorney to be executed from the country of stay.

* HR E-Mail Id

Interest Rates & Charges:

  • Processing fees on Education loan ranges from 1% to 2% of loan amount. Some financial institutions charge flat processing fees
  • Interest rate on loan ranges from 9% to 15% depending on the course opted by student, academic background of the student, collateral offered by student’s parents
  • Travel Insurance is to be compulsorily availed by the student
  • MRTA is to be compulsorily taken by the student

Frequently Asked Questions:

1.From when does the repayment of loan gets started?

There are 3 types of products in Education loan

(i) Simple Interest Loan: In this type of loan the borrower has to pay only the interest amount accrued on loan till the completion of course. After course completion actual EMI starts.

(ii)Partial Simple Interest Loan: In this type of loan the borrower has to pay only lump sum fixed amount as decided by the financial institution till the completion of the course tenure.

(iii)Equated Monthly Installments: In this type of loan actual EMI starts from the day of disbursement. There is no moratorium period in this type of loan

2.What is moratorium period?

The period for which the actual EMI doesn’t gets started is known as moratorium period. Generally, the moratorium period is equal to the course tenure

3.Is Education loan always secured?

No. In secured Education Loan some property is offered as collateral. But sometimes if the academic background of the student is strong then the financial institutions may offer Unsecured education Loan means loan without any collateral.

Normally the rate of interest on Unsecured Education loan is slightly higher

4.Can Education loan be availed for both Domestic & Overseas education?

Yes, Education loan can be availed for both Domestic & Overseas Education

5.On what factors the rate of interest on Education Loan depends?

Following are some of the major reasons on which interest rate on Education loan varies:

  • Course preferred by the student
  • Country in which the student is willing to study
  • Academic background of the student
  • Whether the loan is secured or Unsecured
  • Type of collateral offered by the borrower
  • Credit score of the applicants

childern loan lendingpitstop.com

Childern Fees Financing


With the growing use of technology, increase in demand of quality education at school levels has increased and due to this education cost has increased which has shaken the financial plans of the families. Education sector is not spared from the demand of financial needs from the Banks/NBFCs.

With the focus to make the quality education within the reach of each and every future calibre of our country we have come up with a product named “Children Fees Financing”

What is Children Fees Financing?

CFF means financing the education cost of children, thus helping numerous families to manage their financial plans as per their set goals.

How the concept of CFF works?

The whole fees of the child will be financed by the financial institution and parents will be given the option to repay the loan amount in 4-7 equal monthly instalments which will be a Zero cost EMI. Due to such EMI the burden of paying hefty fees to schools gets reduced and parents can manage finance accordingly.

Benefits to Parents:

  • Zero cost EMI loan i.e interest free loan
  • Facility to repay in 4-7 EMIs
  • Zero paper work involved
  • Reduction of burden from paying hefty fees of education upfront
  • No prepayment charges

wedding loan lendingpitstop.com

Wedding Loan


What are Wedding Loans?

The most auspicious occasion of any person’s life is “Shadi” i.e to tie the “knot of love”. Every person has a dream to organise his/her wedding in style by booking their favourite venue, purchasing favourite jewellery, purchasing clothes, booking best photographer & favourite caterers, best makeup artist and so on.

We as a team take care that such dreams don’t gets fade away due to lack of unavailability funds. We help such love couples get loan for wedding i.e “shadi ke liye loan” (“Paisa humara, khushiyaan aapki”)

Wedding loans are type of Unsecured loan where no asset is offered as collateral.

What are the benefits of Wedding Loan?

  • No need to worry about huge expenses incurred during marriage
  • Easy financing with minimal documentation
  • Flexible repayment options

Eligibility & Documents:


For Salaried:

For Self-Employed:

* Salary slip of last 6 months.

* IT Return of last 2 years along with copy of Profit & Loss A/c and Balance Sheet.

* IT return of last 2 years.

* GST Registration Certificate.

* Form 16 of latest Financial Year

* Business Establishment Certificate.

* Banking of last 6 months.

* Banking of last 12 months

* Employment Certificate from current employer

Financial Documents:

For Salaried:

* Salary slip of last 3 months

* IT return of last 2 years

* Form 16 of latest Financial Year.

* Bank statements of last 6 months.

* Employment Certificate from current employer

Interest Rate & Other Charges:

  • Processing fees on Wedding loans depends on the loan amount
  • Interest rate on Wedding loans starts from 11.25%
  • Foreclosure and Pre-payment charges vary from financial institutions to financial institutions

Non-Convertiable Debentures


In the time market volatility, one of the best ways of earning fixed return on investment is to invest in Non-Convertible Debentures.

Company raises money from public by issuing debt paper for a specified tenure where it pays a fixed interest on the investment. This paper is known as a debenture.

Types of Debentures:

(i) Convertible Debentures:

Convertible Debentures are those which gets converted into equity share on maturity.

(ii) Non-Convertible Debentures:

Non – Convertible debenture do not have the option of conversion into shares on maturity. The holders of such NCDs get principal amount along with accumulated interest on maturity.

Security of NCDs:

Secured NCD is backed by the assets of the company and if it fails to pay the obligation, the investor holding the debenture can claim it through liquidation of these assets.

There is no backing in unsecured NCDs if company defaults.

Company seeking to raise money through NCD has to get its issue rated by agencies such as CRISIL, ICRA, CARE and Fitch Ratings. A higher rating (e.g. CRISIL AAA or AA-Stable) means the issuer has the ability to service its debt on time and carries lower default risk. A lower rating signifies a higher credit risk.

Interest Rate on NCDs:

Interest rates on NCDs are generally higher than interest on savings bank account or interest on fixed deposit. Generally, interest rate on AAA rated paper ranges between 9.50% to 10.00%.

The interest on such NCDs can be paid either quarterly, half yearly or annually. Companies having lower credit rating offers higher rate of return on NCDs.

Frequently Asked Questions:

1.Are NCDs listed on exchange?

It’s not necessary that NCDs are listed on exchange. It depends on issuer whether to get it listed on exchange or not. If the NCDs are listed on exchange then they can be sold on the exchange and the gain or loss on selling depends on the interest rate prevailing in the market at the time of sale.

2.How the gain on sale of NCDs taxed under Income Tax Act?

If the NCDs are listed on exchange, then gain or loss on sale of such NCDs is treated as short term or long-term capital gain. Short term or Long-term Capital gain depends on the period of holding of such debentures.

If the NCDs are not listed on exchange then total additional amount received on maturity and during the holding period of the NCDs will be treated as interest income and taxed under the head “Income from Other Sources”.