Yesterday night we invited one of our family friends for dinner. Quite surprisingly, dinner ended up with fight between husband and wife. The bone of contention between husband and wife was "How to Spend their Annual Performance Bonus?". Best part is that Bonus is yet to be paid. Husband will receive Bonus with March's salary and wife will receive in April's salary. Wife would like to buy Diamond Set and plan holidays abroad both costing 4.5 lakh. She told husband to save rest. Please note that total bonus payout is 5 lakh :). I was avoiding interference in their personal matter but then i ... Read More
Impact of Low Value Loan on CIBIL Score
Loan in any form is not good for financial health of an individual specially low value loan. I don't believe in Good Loan or Bad Loan, it should be avoided (If possible). Rather i believe in credit discipline and good credit practices to improve CIBIL score. I do agree that for an asset like property, an individual cannot be save such a huge amount to buy property without home loan. Barring few exceptions i.e. high value assets, we can manage our finances to avoid low value loan / borrowing. In my opinion, a Loan should be availed if following 2 conditions are fulfilled (a) Purchase / Buy ... Read More
11 Questions You Should Ask Builder
Its an irony that we don't pose relevant questions to builder while buying a property. A typical trait is that we spend more time probing and bargaining for low value items than big ticket purchase like a house. In a recent behavioral study, it was concluded that we probe and bargain most while buying from roadside stalls. Nothing new in this as i have never seen people bargaining in malls. This study holds true for property purchase from builders. A buyer is afraid of asking too many queries from builder. If i suggest my clients to ask few imp questions from builder, Builder has standard ... Read More
Composite Loan – Two in One Home Loan
Composite Loan is a mix of Land Loan and Construction Loan. It is not very popular jargon in Indian Mortgage Industry. One of the reason is scarcity of land in big cities i.e. buyer prefer flats in big cities. The concept of independent house or villas is more relevant in small cities due to availability of land. As i promised in my last post that next post will be dedicated to composite loan. Yesterday i visited one of the leading PSU Home Loan provider to get some clarity on Composite Loan. Whole branch took 45 mins to understand what is Composite Loan. Loan Manager of the branch called ... Read More
7 Facts You Should Know About Land Loan
Land Loan or Plot Loan (used interchangeably) is one of the most confusing subject for borrowers in Loan / Mortgage segment. Confusion is normally between Home Loan, Land Loan and Composite Loan. All three are different products with different features, benefits, Terms and Conditions. Unfortunately all three i.e. Home Loan, Land Loan and Composite Loan are loosely referred as Home Loan only. At macro level, Land Loan is sanctioned only for purchase of residential plot or piece of land. Composite Loan is Land Loan + Construction Loan i.e. to complete construction on plot. In most of the cases, ... Read More
Buying a Property from Landowners Share
At the time of property purchase, many people are not aware that flat they are buying is from landowners share. Recently one of my client came to know only on the day of property registration that his flat was landowners share. Builder kept him in the dark. He was shocked but didn't have any choice but to go ahead with the registration. Though its a complex topic and each case is different from another. I thought of writing a separate post on same. Majority of the under construction property disputes are between Builder and the landowners. One of the most common reason for dispute is ... Read More