The year 2017 was a landmark year for the real estate sector in India and the economy as a whole. Many landmark regulations were implemented that have now changed the way businesses are done in India. Major among them was the implementation of Goods and Services Tax (GST) and Real Estate Regulation and Development Act (RERA). Earlier in 2016, demonetisation of high value currency notes was another landmark decision made by the Indian Government to thwart illegal cash transactions that have tainted the real estate sector.
Slew of positive reforms
While the real estate sector took a hit as a knee jerk reaction to the implementation of these hard hitting regulations, these were moves to promote transparency and professionalism into the sector. The Government has made it clear in no uncertain terms that affordable housing is its key area of focus, and that is what will dominate real estate trends in2018. The idea is to empower the potential homebuyer and provide him the impetus to purchase a roof over his head he can call his own with the aid of a home loan provided by a top lender like home loan SBI.
Towards this end, the Government in the budgetary announcement in 2017 granted infrastructure status to affordable housing, to meet its “Housing For All” agenda by the year 2022. This is a win-win proposition for both homebuyers and developers. While homebuyers can look forward to the launch of affordable housing projects, developers will get access to cheaper sources of funding for construction of such projects and receive tax benefits for the same.
Additionally, the launch of the Credit Linked Subsidy Scheme launched by the Government in 2017, is a big boost to homebuyers. Under this scheme, home loan borrowers can benefit from the interest subsidy that is directly credited upfront to the loan account of the beneficiary, thus reducing overall costs for the homebuyers. All these moves indicate that the housing market keeps getting better and there is no time like now to apply for a home loan like home loan SBI.
Lucrative loan options
The largest commercial bank of India the State Bank of India has recently announced a cut of 30 basis points on its base rate to 8.65 per cent that will benefit 80 lakh borrowers whose loans are still linked to the base rate and not to the new marginal cost of funding lending rate or MCLR. That is not all. The country’s largest commercial lender has waived off home loan processing fee for new customers and those transferring their loans to SBI. This waiver will be effective till March 31st. The bank is optimistic that with the new era of transparency that RERA and GST has ushered in, there will an improved demand for home loans in the year.
Thus if your credit score is above 750 and you have been contemplating the purchase of your first home, this may be the opportune moment to opt for a home loan. However, not everyone has a blemish free track record. There may have been some unavoidable circumstances in the past as a result of which your credit score has dipped below the desirable level.
The way out for those with bad credit
While it is always recommended to make constant efforts to improve your score, there is no reason to think that you will not be eligible for a home loan. For those who are in trouble with their credit records, , can consider looking for loans for bad credit to repair credit record.
Needless to say, this option rules out the possibility of opting for a top traditional lender. For top of line lenders, credit score is an important cornerstone of credit assessment. However, you can either go a local bank where you know the branch manager personally or opt for a loan from a P2P platform.
At the above mentioned places, credit score of an individual is not as a high a priority for credit assessment as other factors such as current job profile, circumstances under which you have fallen behind on your payments, your family credentials and even your social media footprint is taken into consideration. However these parameters are subjective and may differ from lender to lender. However, once you have access to loans for bad credit, you can make optimum use of it to repair your credit records and score before you make an application for a home loan.
A home loan is a long term commitment that you make to a lender to make repayments on time. Therefore, a blemish free credit record and a satisfactory score is mandatory to opt for a loan. While you will gain immensely with regards to your credit score if you opt for a one and maintain a timely repayment schedule, your inability to live up to this commitment may hamper your score in the long run, putting you into the vicious circle of a debt trap. Therefore, it is prudent to make a home loan application only when you are 100% sure of your repayment capabilities.
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