Home Loan Insurance: All You Wanted to Know

 January 2022

Here is everything you wanted to know about home loan insurance policies in India.

Home loan insurance, also referred as mortgage insurance, is a cover that protects a home loan borrower from adverse situations. Availing housing finance means a long-term repayment responsibility for a borrower, hence a home loan insurance policy ensures a borrower is helped and covered in case he is not able to repay his home loan EMIs.

What is home loan insurance?

A home loan insurance policy ensures the home loan of a borrower is paid by the insurance company in case the person is unable to make the EMI payments due to unforeseen circumstances. Such situations may arise due to sudden death of the primary borrower, job loss, or major accident. The terms and conditions of your home loan insurance policy depends on the type of policy you have taken. Many comprehensive home loan insurance policies are available in India that offer different covers.

Home loan insurance providers in India

Almost all banks in India have insurance subsidiaries that sell home loan protection plans. The State Bank of India (SBI), for instance, has SBI Life; ICICI Bank has ICICI Lombard; HDFC has HDFC Life and HDFC Ergo. However, there are banks that don’t have an insurance subsidiary tie-up with life insurance providers and general insurers companies to sell home loan and home loan insurance packages.

Is it necessary to buy a home loan insurance policy?

You are not obliged to buy a home loan insurance policy, though the bank providing you the loan would make it sound like you must. Banks always budge the borrower to go for a home loan insurance policy as it guarantees him loan payment even if the borrower is not able to pay. The insurance company will help in such case. However, for their own good, home loan borrowers must buy a home loan insurance policy. Financial planners are unanimous in their opinion that home loan borrowers must buy a home loan insurance policy to get cover against any misfortune.

Home loan insurance premium

In majority of the home loan insurance policies, the borrower has to pay one-time premium to the insurance company. However, there are also home loan protection plans where the borrower can pay the policy premium in certain installments. The amount of money you pay as the home loan insurance policy installment depends on the home loan amount, and the type of cover you have opted for. Your age and medical records affect the home loan insurance policy premium amount. Basically, the older you are, the higher is the premium, and the more physically fitter you are, the lower is the premium.

Home loan insurance coverage period

A home loan insurance policy remains effective throughout the home loan repayment tenure. Once the loan is fully paid, the insurance protection ends. The home loan insurance policy would lapse after the death of the borrower. The same is true if the home loan is transferred to another bank. The home loan insurance plan coverage reduces as you repay the home loan. If you have already paid Rs 10 lakh out of home loan of Rs 30 lakh, the protection plan will pay only Rs 20 lakh to the bank, in case of a mishap.

Home insurance versus home loan insurance

Home insurance and home loan insurance are two different services. While the former protects your home in case of an adverse situation, the latter would take care of your pending home loan in case you are unable to pay due to some mishap.

Tax benefits on home loan insurance

Those who have purchased a home loan insurance policy can claim deductions under Section 80-C of the Income Tax Act, to pay the home loan insurance premium. But, if you have borrowed money to pay the home loan insurance premium, you will not be able to claim the deduction.

Also read: New Year Goals For Home Owners In 2022

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New Year Goals For Home Owners In 2022

 January 2022

The purchase of a property, may have a significant bearing on your monthly finances in 2022. We look at ways to deal with these changes smoothly

Housing affordability in India was probably at its peak in 2021, amid record low home loan interest rates and government-sponsored incentives towards housing ownership. This affordability was further boosted by developers offering waivers in the form of stamp duty or GST reduction as part of their festive deal for 2021. Monetary incentives along with a change in sentiment with regard to housing ownership in the year, also prompted many prospective buyers to take the plunge and seal the deal for their future homes, in 2021. The question is, what lies ahead for these new home buyers in the year 2022?

For those who purchased their new homes, this is just the beginning of a new era, where your financial management skills will be put to the test. We look at how to deal with the expenses of a new house, without much hassle.

Rearrange your monthly expenses

Owning a property involves taking care for it and ensuring that it is supplied with every necessity. Many new expenses will come your way in the form of EMIs, maintenance charges, utility bills, repair costs, upkeep bills, etc. This is precisely why renting has been very popular among the millennials. Nevertheless, for new home owners, the changed fiscal scenario would require you to rearrange your expenses in such a manner that your bills are paid in time, without causing too much strain on your monthly finance.

Go slow on furnishing the new home

While a new home may require new furniture, fittings, drapes, curtains, lighting, etc., getting all of them in one go might be disastrous financially. Thus, it is necessary to chalk out a detailed plan, to go about the re-modelling gradually. While the first year, your savings could be used to change the furniture, the next year could be used to improve the lighting fixtures. Adjust with your old furniture and other things till you have saved enough to make a new purchase.

Keep an eye on interest rate movements

Housing loans are already at record low rates. You could get a home loan at 6.40% annual interest, currently. While the chances of rates being lowered further are slim, as the Reserve Bank of India (RBI) is likely to tweak policy rates sometime in 2022, to tame a stubbornly high inflation, while also boosting consumer spending, it is a good idea to keep yourself updated with all changes in the world of home finance. Changes in the repo rate would eventually reflect in your EMI outgo. Even though the RBI held rates unchanged for the ninth consecutive time in December 2021, sector experts are of the view that the RBI may not have much leeway in the coming months, owing to persistent high inflation.

At this juncture, note that the RBI in its bi-monthly policy review takes a decision to make changes in key lending rates, following which, banks make changes in their respective interest rates. Banks will never intimate you about changes in rates. Hence, in your own interest, keep a track of these things.

Avoid taking fresh loans

Lending rates are at record lows. This makes auto loans, home renovation loans, etc., quite affordable. As banks present it, this could be a once-in-a-lifetime opportunity to own a vehicle or to get all those expensive furnishings for your new property. This might certainly tempt you to purchase a new car or go for a complete remodeling of the property right after your home purchase. This would, however, have an adverse bearing on your monthly finances. Overburdening yourself with new loans at this point would amount to poor judgement, as the economic conditions also pose a risk on job security and business safety. It is advisable to sit tight and maintain a wait-and-watch mode, right now.

It is only after a significant portion of your home loan is paid off that you should think of applying for a fresh loan. Having to serve two big loans would be a big burden, otherwise.

Do not opt for too many insurance products

As part of home loans, banks also push you to buy home insurance and home loan insurance policies, primarily prescribing all their arguments in favour of these products, playing on the fear factor. The kind of uncertainties we have seen in the recent times, may also prompt us to opt for insurance, in order to face any future difficulties in a planned manner. However, one should not lose sight of the fact that taking excessive insurance, makes a huge dent on one’s yearly earnings. Unless you understand the product properly and its intended benefits, do not purchase home insurance and home loan insurance products only because your banks recommend it.

Save up for small repairs and maintenance

With usage, your new property will be subject to the normal wear and tear. The paint on the wall will lose its sheen over some years. Grout lines may appear on the floor, despite regular cleaning. You would get a leaky tap or faulty electricity wire. Sometimes you would have to call an exterminator for pest control or a plumber to fix a choked pipe. These would, by and large, be regular occurrences that would not only need immediate handling but also cost you. Keep saving additional money every month. to address such issues in the new property. If left unattended, these issues could significantly impact the property’s health.

Adjust your social life to cut down unnecessary expenses

A new home also makes it incumbent upon the owner to make certain changes in one’s social life. You may have to significantly cut down the number of movie outings, fancy dinners and trips to malls, meant for leisure activities. House ownership also means you will be able to throw less number of parties in a year or at least reduce the number of guests invited at each such occasion. Even if you cut the numbers of these celebrations by half in a year, you will be able to save up a significant amount of money, to take care of your new responsibilities as a house owner.

Also read: Home Loan Guide: How To Decide The Lender And Tenure Of Your Home Loan?

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Vastu Shastra Tips For Office, To Bring Prosperity At Work Part-2

 December 2021

Vastu tips for placing plants in the office

To bring positivity and some freshness to your workplace, you can consider adding the following plants at your office. This list has been consolidated keeping in mind the extremely dry conditions due to air-conditioning.

• * Basil plant


• * Money plant.


• * Lucky bamboo plant.


• * Lotus plant.


• * Lily plant.


• * Snake plant.


• * Cactus.


• * Lemon balm



You can also consider keeping jade plants on your desk. Apart from this, areca palm plants and dracaena plants are good options, as it brings good luck and prosperity.

Vastu tips for conference/meeting rooms

According to Vastu, the best direction to have a conference or meeting room, is the north-west. This direction is also suggested for marketing and sales staff, as they require motivation for improving their performance. You can also plan a waiting room in this area.

Vastu tips for choosing office furniture

• * For north-facing workstations, things like files, documents and electronic appliances like computers, must be kept on the left side of the table.


• * East-facing workstations should have the storage space on the right-hand side.


• * Workstations or desks must never be L-shaped or any other irregular shape as it may create confusion and delays in the delivery of work.


• * Never eat food at the workstation or desk, as it shows disrespect to work.


• * Business owners, especially entrepreneurs, must ensure that their desk is rectangular or square-shaped and made with a superior grade of wood. Avoid tables with glass tops or metal tables, as these are not considered lucky for any growing businesses.


• * For the office, it is better to use steel furniture according to Vastu. If you are using wooden furniture, ensure that the sides and edges are rounded and not sharp. Use light colour polish on the wooden furniture.


• * According to Vastu, the office chair should be comfortable and spacious, with good arm and lumbar support and should have a high back. According to office Vastu, for promotion, add a red touch to the chair. White chairs or white cushions are beneficial, overall. Vastu says to avoid using iron chairs in the office. Never use an upholstered chair with discoloured or faded fabric, or a broken chair, as it is inauspicious. It is better to repair or change it.

Vastu Shastra tips for the factory office

In a factory, the office should be located in the north or east direction. When doing business deals, the owner, MD or CEO, should always face the north or east direction, for securing profits. Ensure that there is no beam over the table.

Vastu Shastra for south-facing office

The south-facing office plot should be in a square or rectangular shape. The west and the south can be used for the construction of heavy structures. Ensure that there is open space in the north and the east portion of the office area. The slope of the office floor should always be towards the north-east, east or north direction as this leads to financial gains.The shutter should be maroon or red in colour. If a glass entrance has to be made, design it in the south-east side only.

The height and the shape of the office building should be even from all four sides. The centre (Brahmasthan) of the office should not have any heavy structure. There should be no water tank in the north-east zone.

The head of the office should sit in the south or west side of the office, with their face towards the north or the east direction. The ideal shape of the office desk is rectangular. The office should be painted in light colours and one should refrain from using black and brown colours. The doors and the windows should be in the eastern or the northern portion of the office.

Vastu Shastra tips for home office

• * Since work from home has become the new normal, here are some Vastu tips to ensure your workspace at home has a balanced environment and promotes productivity:


• * Set up your desk/home office in the west or south-west direction. Your position during work must be towards the north-east. When setting up a home office, avoid sitting with a wall at the back. Also, never sit in front of a door.


• * If you have a separate space that can be converted into an office, opt for neutral colours. You can also choose light gold, as it ensures productivity and profits.


• * The work desk should be rectangular or square in shape. If one is working on a dining table, then, ensure that it does not have a glass top on it. The work chair should be comfortable, spacious and up to the head of the person sitting on it.


• * The drawers should be in the west or south-west section of the desk.

Vastu tips for temple in the office

The temple or an idol of a lord that one worships, should be placed in the north-east corner of the office. In case this is not possible, then, keep the temple in the east direction.Vastu experts state that the Ganesha idol can be placed at the entrance but the back of the Ganpati idol should face the office’s main entrance. Try and always keep the temple clean and decorate it with fresh flowers and incense.

Vastu tips for office gym

If you have a gym at office, follow these Vastu tips to negate any adverse effects:

• * All heavy gym equipment must be placed in the south-west, the west, the north-west or the south-east corner.


• * You can keep light equipment in the north. This direction is also suitable for performing exercises on mats, which should be done facing the east direction.


• * Install mirrors in the north or the east walls and avoid the west, the south or the south-west directions.


• * Do not keep televisions or any other distracting devices, to ensure the room is peaceful.



Vastu tips for selecting plots for office

Shermukhi plots are suitable for constructing an office, factory or any commercial building. These types of plots are broader from the front side and get narrower at the ends. One should select a plot closer to the roads that are highly operational.

Vastu tips for basement office

Wrong placement of a basement office can bring negative effects for the business. The office basement should be constructed in the east or north direction of the land. Make sure there is more space on the east and north side. Lofts and mezzanine floors, according to office Vastu, should be towards the south, west or south-west.

Vastu tips for office parking

Vehicles must be parked in the specified area, towards the north-west of the office building. The north-east should be free from parking zones.

Vastu tips for office lawn

According to Vastu Shastra, planting trees brings positive energy. Small lawns without trees should be developed in the north-east, north and east directions. Design lawns with big trees on the south and west side.

Vastu for boss’ cabin

Vastu for boss’ cabin suggests that it should be in the west or south-west zone. The top managers should face the north or east while sitting in the cabin. Also, there should be a wall behind the manager’s chair. No religious pictures should be placed behind the chair. The table should be made of wood. The door of the cabin should be in the north-east corner. The office or cabin shape should be square or rectangular.

Common Vastu defects and their remedies

VASTU TIPS FOR OFFICE BOSS CABIN

Having the master cabin located in the north-east or south-east, is a major Vastu defect. As a remedy, place a natural crystal rock in the south-west corner of the main cabin. This will enhance the effectiveness of the earth element; water elements should not be used in this cabin.

VASTU TIPS FOR OFFICE ENTRANCE

The main entrance of the office should be free from any kind of obstacle and the environment should be bright and emit fragrance. However, there could be a pillar or a tree at the front entrance. You can place a basil plant between the pillar and the main door. This will add some greenery to space and make the entrance look welcoming.

VASTU TIPS FOR OFFICE COLOURS

You should pick very specific colours to paint your office. For a small office, choose colours in a light shade, such as pastel and neutral hues. For large office spaces, you can use some bright colours. There should not be any error in selecting the colours, as otherwise, it can have consequences.

VASTU FOR OFFICE CORNER

For offices that have extended corners in the north-west, south-east, or south-west direction, you can keep aromatic plants in the window in the north-west corner. Apart from this, putting wind chimes with six pipes in the window in the north-west, can also be beneficial. You can also use the extended area as a storeroom.

VASTU FOR MISSING CORNER

If the south-west corner is missing, then, a lead metal Helix must be placed on the wall. Placing a lead pyramid will have more positive impact.

VASTU REMEDIES FOR THE PANTRY

If the pantry or the kitchen have the stove and sink very near to each other, place a copper swastika behind the gas/stove and a pyramid made of Shriparni wood, close to the sink. If your office has a pantry or toilet in the centre of the premises, keep Vastu salt in a wooden bowl and replace it every week.

MORE VASTU TIPS FOR OFFICE

• * You can place a bright painting in the office’s east direction, to weed out negativity from your office premises. This will also boost the productivity of your employees.


• * If your office has a floor sloping towards south-east or west, you can place a lead metal or copper pyramid on the sloping side. You can also place three triangular coral stones if the slope is towards the south-east.


• * According to Vastu Shastra, the central part of the office building should be kept empty.




Also read: Vastu Shastra Tips For Office, To Bring Prosperity At Work Part-1





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Vastu Shastra Tips For Office, To Bring Prosperity At Work Part-1

December 2021

People often try to make sure that their offices adhere to Vastu Shastra guidelines, to usher in luck and fortune. From maintaining cash flow to business stability, it is believed that Vastu can play a role in everything that you do in the office. In fact, if properly followed, Vastu can also bring financial prosperity and holistic well-being at your workplace. To help you with this, we delve into some important Vastu guidelines that you can follow at your office.

 

Vastu tips for seating arrangement

DEPARTMENT-WISE SEATING ARRANGEMENT

• * Entrepreneurs should sit facing the north, east or north-east, as these directions are said to encourage growth and new beginnings.


• * People who are in marketing or sales, should face the north-east direction, to ensure proactiveness. They can also sit in a north-west direction.


• * Account department officials should sit in the south-eastern corner and should face the north-east direction.

SEATING ARRANGEMENT FOR MANAGERS AND OWNERS

• * People in leadership roles, should have a cabin in the west direction and face the north-east direction.


• * Business owners should sit facing the east or north directions. Also, there should be a solid wall behind the seat and not a wooden divider or curtain.


• * Managers, directors and executives should sit in the south-west, south or west corner of the office. This will help the workforce take better decisions.

EMPLOYEE SEATING ARRANGEMENT

• * Employees must face the north or east while working in the office, as it improves productivity. Employees should not sit directly under a light beam. If it is unavoidable, then, it can be covered with a wooden board.

Vastu tips for office entrance

The entrance of the office should be in the north or north-east or north-west direction. These directions are considered to be auspicious and brings positivity. North direction is also known as the direction of the lord of wealth. It will help you in accelerating financial profits, as well.

Vastu tips for office décor and interiors

• * According to Vastu guidelines, the north direction is ruled by the god of wealth while the north-east direction is indicative of a person’s financial health. You can keep a mirror or Kuber Yantra in the north direction or on the northern wall of the office, to ensure good financial health. Avoid piling up of finished goods in the north-east direction, especially in front of the office desk. You can place these goods in the north-west direction, to ensure smooth clearance of unsold stock.


• * Place your safe in the south-west corner of the office, to keep financial documents. The safe should face the north-eastern direction, to ensure prosperity.


• * According to Vastu, flowing water signifies the flow of wealth and positivity in the surroundings. A water fountain in the office will help to reduce stress and also give power. Keep fountains in the north for career growth. Avoid placing fountains that flow outward, at the office entrance.

Vastu tips for office electrical equipment and machines

The electrical equipment and related items must be placed in the south-east direction of the office building. South-east directions are also suitable for placing electrical appliances in the pantry or the kitchen. According to Vastu, the generator, electric meters and transformers, should be in the south-east corner only. Weighing machines should be kept in the north-west or east. Keep printer scanners, servers, Wi-Fi routers and camera monitors in the south-east zone.

Vastu tips for office lights

Lighting, when designed according to Vastu, can create a warm, inviting and energetic office space. Ensure that the office has ample natural light, as sunlight is associated with positive vibes. To have a successful and fulfilling career, bright lights should be in the south zone. There should be no glare on the computer screen. Adequate level of lighting at the workplace, helps to avoid feelings of tiredness and lack of concentration. The amount of light falling on an individual’s workstation should never be excessive in case of general lighting, as it can create a bad effect. Overall, the office should have soothing illumination. Also, the main entrance of the office and reception area should be lit up well with attractive light fixtures, according to Vastu, to invite good energy.

Vastu tips for the reception at the workplace

• * The reception of any office should be built in the north-east or east direction.


• * The receptionist must be seated facing north or east.


• * The logo or the company profile should be on the southern wall of the reception area. Vastu also says that the reception table should be


• * placed diagonally to the front door of the office.


• * French lavender flowers or green jade flowers can be kept at the reception area. You can also keep a four leaf clover plant at the entrance.

Vastu tips for pantry/canteen area at the workplace

• * The pantry should be constructed in the south-east direction.


• * At any cost, it should not be located in the north.


• * The walls of the pantry can have colours like light blue or green and plants can also be kept in the pantry.

Vastu tips for washrooms at the workplace



• * Washrooms are considered to have bad or negative energy. So, it is very important to get the placement of the washroom right.


• * The washroom should be in the west or north-west direction.


• * Washrooms should never be in the east, north-east or south-east directions.

Vastu tips for staircase at the workplace



• * The staircase can be constructed in the south or south-west direction.


• * According to Vastu, spiral staircases should be avoided, as they are considered to be imbalanced and can affect the positive energy in the office.


• * Office staircases should be ideally painted in light colours and not in black or red colours.


• * There should be no staircase in the centre of the office, as this can lead to financial drain.


• * Plants can be kept on the corners of each step.


• * Staircases, according to Vastu, should have an odd number of steps.

Vastu tips for installing elevators/lifts



• * According to Vastu experts, elevators in an office, should be installed in the north or east directions, while the north-east and south-west directions should be avoided at all costs.


• * Do not install lifts exactly in front of the main entrance as it will flush out the positive energy from the space.


• * Avoid mirrors on the left as it is not suitable as per Vastu Shastra.

Vastu tips for your office desk, chairs and cabin



• * Place a mountain scenery in your cabin, behind the chair.


• * You can also place a turquoise pyramid on the desk, for better relations with your employees and peers.


• * Keep your desk clean and clutter-free.


• * Do not let unimportant documents pile up on your desk.


• * Keep papers and books locked away.


• * Throw away broken stationery as it acts as an obstacle to financial prosperity.

Vastu Shastra tips for choosing wall colours for the office




Always use bright colours for the wall paint and décor, as it spreads positivity, reflects light and keeps negative vibes at bay. Here is a colour guide for your office:




Blue: This colour makes the overall aura cheerful and full of positive vibes. You can use this colour for the southern wall.

Green: Use different shades of green colour as it is beneficial for professional relationships. Paint the south-western wall in a green colour, to promote harmony in the office culture.

White: Use different shades of white, cream and yellow in south-east, east, north-east and north-west corners and walls.

Red and pink: Usually, office interiors are not painted in red and pink tones but if you want, you can use these colours on the southern walls.

Vastu tips for placing plants in the office




To bring positivity and some freshness to your workplace, you can consider adding the following plants at your office. This list has been consolidated keeping in mind the extremely dry conditions due to air-conditioning.



• * Basil plant


• * Money plant.


• * Lucky bamboo plant.


• * Lotus plant.


• * Lily plant.


• * Snake plant.


• * Cactus.


• * Lemon balm



You can also consider keeping jade plants on your desk. Apart from this, areca palm plants and dracaena plants are good options, as it brings good luck and prosperity.





Also read: Vastu Shastra Tips For Office, To Bring Prosperity At Work Part-2





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Home Loan Guide: How To Decide The Lender And Tenure Of Your Home Loan?

 December 2021

Should you choose a home loan from a bank or a housing finance company? What are the loan tenures and interest rates that you can avail? Housing.com gets answers from experts in a webinar on ‘How to decide lender and tenure of your home loan?’

For prospective home buyers, opting for a home loan is a significant step in their home-buying journey. With several banks and financial institutions in the market today, selecting the right lender is not an easy decision to take. Often, a borrower may be more inclined to choose a lender offering the lowest interest rate. However, there are other crucial factors that need to be considered to ensure a comfortable loan repayment experience. Emphasising this idea, experts at a webinar conducted by Housing.com on the topic ‘How to decide lender and tenure of your home loan?’ shared valuable insights to help individuals make an informed decision on picking the best lender and home loan tenure.

The panelists at the webinar included Sanjay Garyali (business head housing finance and emerging market mortgages, Kotak Mahindra Bank) and Rajan Sood (business head PropTiger.com). The session was moderated by Jhumur Ghosh (editor-in-chief of Housing.com News) and co-branded by Kotak Mahindra Bank.

Where can you get a home loan?

Speaking on the importance of preparation for a home loan, Garyali said, “One of the key parameters one has to look at, is the credibility of a financial institution. A home loan may not be the only product that a customer may seek from a financial institution. One must look at whether the lending institution gives visibility on multiple products as, subsequently, a customer may like to change the tenor and rates, opt for a top-up plan on the existing loan, or go for another loan from the same company. So, one should not look only from the perspective of the home loan interest rate when choosing a home loan.”

Typically, an individual may prefer to get a home loan from a bank where he or she is already a customer. For such regular customers with a good track record, banks may also provide flexible options in terms of rates in the future. It can be a private bank, a public sector bank or any NBFC that an individual may be considering for a home loan. Broadly, one must see whether that company is capable of catering to the multiple needs of a customer in the long run, he added.

Highlighting the fact that the association between a home loan borrower and the lender is a long-term one, Rajan Sood remarked, “Buying a house is one of the biggest decisions of an individual in his or her lifetime. One of the important decisions related to it, is choosing a lender for a home loan. However, the decisions around choosing a lender specifically for a housing loan and for other financial products that one may opt for in the future, cannot be taken separately.” He suggested that home buyers look at the rate of interest offered by different lending institutions, as the foremost thing when seeking a home loan. Another crucial factor that borrowers should see is the loan amount that one is eligible for, as decided by the lending institution. He further added that there are other factors to keep in mind like processing fees, prepayment terms and conditions, the company’s track record, the ease of documentation and the quick turnaround time, before going ahead with a lender.

The shift towards digital experience in the home loan journey

Bringing attention to the digital preparedness of the financial institutions and banks, especially in this current pandemic scenario, Jhumur Ghosh said, “Home loan applicants do not want to go through a lot of paperwork and they want the process to be done in a streamlined manner. Customers today are opting for banks that are digitally prepared, making lives simpler for those opting for home loans.”

Garyali concurred that banks were taking steps to make things convenient for customers. He also highlighted the emerging industry trend of assisted journeys pertaining to home loans and secured lending, where customers look for personalised support and face-to-face interactions with their lenders.

According to Sood, the preference of home buyers towards the digital medium has increased during the past three to four years. “As far as the pre-qualification process for the loan is concerned, most of the customers prefer the online mode. Financial institutions have been focusing on innovation around providing a digital experience for customers. About 50% of the overall home loan process is happening online. If a financial institution can provide an in-principle approval, based on the information provided by customers online, the keenness to close property deals significantly goes up. However, the overall home loan process cannot be completely done digitally and customers prefer the assisted part of the process.” he observed.

What are the buyers’ preferences?

Usually, real estate developers have tie-ups with financial institutions for providing home loan solutions for their customers. Garyali observed that smart home buyers today, who are digitally savvy and have access to information online, prefer to negotiate with the developers on property rates while weighing their options on lenders who provide them with the best home loan options. Agreeing that home buyers view these aspects separately, Sood shared that many home buyers prefer such tie-ups since that reduces their efforts in independently looking for a lending institution.

Ghosh advised that home buyers must keep their options open and decide, after analysing the different scenarios.

Should you go for a shorter loan tenure or longer tenure?

While choosing the right lender is one aspect of the home loan journey borrowers are dealing with, many are also unable to decide the ideal home loan tenure. One must note that opting for a longer loan tenure helps one repay the loan over a longer period, with the EMIs becoming quite affordable. On the other hand, a shorter loan tenure will result in higher EMIs. According to the experts, tenure is a key factor in choosing the loan amount one may be eligible for when taking a home loan. Going for a relatively longer tenure will help one get a higher loan amount for the same salary. The panelists advised that choosing a suitable home loan tenure normally depends on a person’s financial situation and requirements.

Things to remember when opting for a home loan

According to the experts, many home-seekers find applying for a home loan a viable option since it offers various tax benefits. Home loan borrowers are eligible for tax deductions on principal repayment and the interest component and other tax benefits on taking a joint home loan. The experts suggested keeping these points in mind when opting for a home loan.

Sharing more insights on home loan eligibility, Garyali talked about how lending institutions viewed salaried individuals and self-employed individuals differently when assessing their eligibility. He said, “Around 75% of the home loan market comprises customers belonging to the salaried class while the remaining 25% belong to the self-employed category. It is easy to arrive at the eligibility of salaried individuals, as they have a fixed income from salary. On the contrary, for self-employed individuals, the bank or financial institution must get into the nitty-gritty of verifying the various sources of income and several other aspects, thus taking a longer processing time on the part of the lender.”

Fixed rate vs floating rate

As per the experts, certain banks and financial institutions offer a fixed rate for a home loan for a specified period. However, that may mean a premium over the prevailing floating rate, which does not make financial sense for borrowers. On the other hand, the floating rate does not depend on the external environment but varies based on the RBI’s repo rate. In the current regime, experts felt that since the home loans have been linked to the benchmark set by the RBI, it should give customers the confidence to opt for floating interest rates.

Pre-approved loans: Are they beneficial?

A pre-approved loan is where a lender sanctions a loan for a borrower before selecting a property. As per Garyali, pre-approved loans may be merely beneficial for zeroing in on a property and knowing one’s eligibility for a home loan amount. Sood pointed out that pre-approved loans help prospective home buyers since that establishes a sense of confidence and makes them well-acquainted with the entire home loan process.

Responding to how long the low-interest rates may last, Garyali talked about retail inflation and its impact on the home loan interest rates. He said that interest rates may go up and that borrowers would need to assess the situation and decide whether it was the right time for them to go for a home loan. Sood noted that home loans are long-term investments and interest rates may change as they are linked to the RBI’s repo rate. However, he said that any change in home loan interest rates may not significantly impact a prospective home buyer’s decision of purchasing a house.

Also read: Technological innovations in smart homes and the way forward in 2022

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Technological Innovations In Smart Homes And The Way Forward In 2022

 December 2021

Modern-day homes are undergoing an experience upgrade, transforming from connected homes to intelligent, intuitive and proactive homes

Smart homes ushered in a new era of ease and convenience, by improving lifestyles and yet, making lives simple. Homes with cutting-edge technologies that enable individuals to control and automate lights, entertainment systems, air-conditioning and other linked equipment from afar, have emerged as the homes of the future. Today, our homes are undergoing an experience upgrade and are transforming from connected homes to intelligent, intuitive and proactive homes.

Innovations in smart homes in 2021

Several technological innovations that we have witnessed in the home automation space started to permeate into homes and spaces, with the ongoing pandemic accelerating the pace further. The facility to control homes through a wireless medium, makes living in a smart home an immersive and revolutionary experience. This need has been reinforced by the disruptions experienced due to the pandemic. We can operate practically all of the equipment in our homes (such as a high-tech music system, a geyser, multiple appliances or the lighting across specific areas) from any place.

In 2021, smart home technology trends were focused on and emphasised health benefits. Smart doorbells have come to the fore with their touch-less features. With the widespread shift to virtual work, smart home solutions, particularly for home offices, have gained immense traction and are continuing to improve and revamp as organisations extend office closures and adopt hybrid or permanent work-from-home policies. From noise-canceling windows to AI filters that disguise and camouflage surroundings on video calls, these smart home solutions are just the beginning of brimming possibilities in this arena.

From smart homes to intelligent, intuitive homes in 2022

There is a positive outlook in the minds of home owners, for automated, intelligent homes. According to a McKinsey report, the value for the Internet of Things (IoT) market will reach $11.1 trillion by 2025. Thus, the need to orchestrate data from home devices and sensors will continue growing immensely. We are in a transition phase where smart homes need to become intelligent and sustainable homes. We need to forge a future where we move to zero-touch user interfaces (UI). The future of smart homes is for them to become completely intuitive environments that can manage the external and internal needs of its residents.

A sentient home empowers accessibility with smart devices connected to wireless control, to provide seamless usability, operability and control. Smart homes of the future will be able to detect patterns based on the preferences of individuals and will gradually integrate them into the regular operations of devices and gadgets. It is crucial to utilise the power of these gadgets in a sustainable manner as they become more prevalent and permeate into our homes and spaces. The emphasis on home automation devices is moving towards product durability, scalability and efficiency. As we move towards 2022, smart homes of the future will continue evolving as all-encompassing, intuitive and intelligent spaces that drive delight and inspire possibilities.

Also read: Lease vs Rent: Main Differences

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