Home loan To Get Your Dream House.


Having your own nameplate on the door of your house has a charm of its own. It’s a feeling that everyone wants to experience once in their lifetime. A long time ago, owning a house was considered a luxury which only a lucky few could afford but not anymore, all thanks to the modern banks and the home loans they provide.

If you’re also one of those in the nascent stages of zeroing in on your dream house, congratulations, you have chosen the right time. The Reserve Bank of India (RBI) had recently cut the benchmark repo rate by 25 basis points to 6.5 per cent, a move that is expected to make home loans cheaper as banks will now have to lower their base rates.

Once you pass the hurdle of choosing the perfect house in the perfect neighbourhood in your perfect price range, the next challenge starring in your face is choosing the perfect home loan from the vast variety of banks offering the same.

For people still dwindling with how, when and why verticals of applying for a home loan, here’s a step by step guide of how to do it.

1) Home loan Application- This is the first step towards making your house dream a reality. One can get a home loan application form from any bank office or download it online from the bank’s website. Once you have received the application, dully fill the form and attach all the documents asked like ID proof, Address proof, Income proof, and bank balance statement etc. After this is done, submit the form back to the bank.

2) Face-to-face discussion with the bank-
After your application is duly filled and submitted, the next step involves the bank calling the applicant for a one-on-one chat to decide on the application, evaluate all the papers submitted and then decide on the payment capacity and loan amount.

3) Investigation by the Bank- After the discussion, the bank will send a qualified bank employee for an on-field verification of all the documents submitted and claims made in the application. They will also cross check the references mentioned by the applicant in the application. After this, the bank will verify the applicant’s repayment capacity and if it is found satisfactory, the loan will be sanctioned.

4) Offer Letter- After the sanctioning of the loan, the bank sends an official letter to the loan applicant stating all the details regarding the loan like amount sanctioned, interest rate and loan tenure etc.

5) Legal documents submission-Nowadays, most of the banks require the submission of all the legal documents related to the property for which the loan is applied. The bank then performa a legal check on these documents and detains them till the applicant repays the loan amount.

6) Technical valuation of property- After the legal check of the documents submitted, some banks also go in for a on-site technical valuation of the property so as to make sure that the property is viable and at par with the valuation standards.

7) Registration and Signing- After all the above six steps are dully completed, the bank starts with the registration process. The home loan papers are legally prepared on stamp papers by the bank lawyer and the applicant signs the loan agreement and submits it back to the bank along with the post dated cheques.

8) Loan Disbursal- After the registration and signing process is completed, the bank disburses the loan amount based on the agreed terms of disbursal.

For the eligibility criteria, different banks have different criteria for different kinds of people. For example, banks have different criteria for salaried employees, a different set of criteria for professionals like doctors, engineers etc. and different set of criteria for self-employed people. For people wondering how much loan amount they’re eligible for, there are various sites like Cibil.com (https://www.cibil.com/loan-calculator), bankbazaar.com (https://www.bankbazaar.com/sbi-home-loan.html) etc. where they can calculate their loan amount, EMI payments based on their monthly income.

In order to make the process less cumbersome for home buyers, some builders even have pre-mediated home loan deals with several banks. Such loans are easier and faster to avail as the bank is already aware about the project and its valuation potential.

Gudi Padwa- The Maharashtrian New Year

Gudi Padwa.pngCelebrated on the first day of the Chaitra month of the Hindu calendar, the festival of Gudi Padwa spells the welcome of the Marathi New Year. This auspicious festival sees the entire city of Maharashtra engulfed in a blanket of joy and rejoice; dancing, eating and celebrating together. Besides Maharashtra, the festival is celebrated by the name Ugadi in Andhra Pradesh and Yugadi in Karnataka.

History of Gudi Padwa

There are many stories behind the reason for the celebration of this festival. According to Hindu Mythology, Lord Brahma started the process of creating the universe on this very day. Other theories state that the festival honours Shivaji Maharaja, the great veteran Maratha leader whose kingdom was spread across the entire part of western India.

What is the Significance of Gudi Padwa?

On the day of the festival, people get up in the morning, take a holy bath and dress up in their newly stitched clothes. This is basically seen as a way to cleanse one’s body and soul and prepare themselves for a new beginning, a new dawn. According to traditional dictation, Maharashtrian men are dressed in simple kurta pyjama with a saffron or red turban to complete their look, while the
women are required to wear a nauvari, a nine-yard saree.

After this, the women of the house decorate the front of the house with colourful patterns called rangoli. These colourful patterns made of vermillion, turmeric, powdered rice and Holi colours are seen as a sign of bringing in good luck into the house and warding off all the negative energies.

Finally, when the whole house has been cleaned and decorated with flowers and rangolis, the gudi is made. A gudi is basically a brand new kalash of silver, copper or bronze material, covered in auspicious red, yellow or saffron colour cloth. This Gudi is then hoisted upside down at the entrance of the house in a way that it is easily visible even from far. Some people also decorate the gudi with neem leaves, flower garlands, mango tree twigs, and sugar sweet garlands. The making of gudi is a very significant part of the festival as it is seen as a sign of prosperity and good things that are to follow.

The day also sees people treating themselves and their guests to local Maharashtrian delicacies like puran poli, shrikhand puri and chana ussal etc.

In addition to the celebration and food, the festival of Gudi Padwa is also seen as a very auspicious occasion to begin new things, buy new clothes, ornaments, utensils and also book new flats.

Since the period spells the beginning of prosperity, more and more people prefer booking their flats during this festive period. According to industry experts, the festival has always been one of the favourites of the Real Estate sector and this year they expect to sell properties worth Rs. 100 Crore during

Evolution of Pune over the years.

Evolution of Pune over the years

Hailed as the Oxford of the East, Pune as a city has been able to charge on a developmental path while still keeping its cultural roots and history intact. Situated on the confluence of mula and mutha rivers, the city derives its name from this very confluence. Historically, the confluence or sangam of two rivers is called as punya. Hence, the name Pune came into being.

Over a period of time, the city has well-deservingly acquired the crown of being called Maharashtra’s cultural capital because of its rich tradition and history and also for being home to various communities for over decades. But, in recent times, the city has made a conscious effort to be recognised more than just a cultural city to the state of Maharashtra and contribute to the state’s economy and development through an ever-growing and promising industrial hub.

Joining the league of major cities of India, Pune’s proximity to the commercial capital of the country, Mumbai and great weather have contributed greatly in the city climbing up the success ladder. The rapidly flourishing IT industry in areas like Hinjewadi, Tathawade, Magarpatta and Kharadi are attracting the eyeballs of big global names in the information technology sector into the city. Such has been the IT development rate that Maharashtra Chief Minister Devendra Fadnavis aims to build Pune as the IT capital of India.

This burgeoning development in the IT sector has also had a massive impact on the city’s real estate sector as more companies means more employees which automatically translates to more people looking for a place to live in the city. The city currently boosts of being home to more than 50 established and prominent IT/ITeS names such as Cognizant, Infosys, Mastek, and SunGard etc.

In addition to the IT sector, the other industries which are increasing their base in the city of Pune are the R&D sector and the Automobile sector. Such has been the rate of the growth process that Pune has overtaken Bangalore as a hub for high-end engineering design and product development work done out of Multinational corporations firms’ R&D outposts. Currently, the city houses over 110 MNC R&D centres having more than 24,000 people as employees. Well established industrial names like Pitney Bowes, PTC have their R&D centre in the Pune city.

But the one sector that the city owes its development is to the automobile sector. It all started in the 1950s and 60s with the setting up of automobile giants like Kirloskar Oil Engines, Tata Motors and Bajaj Auto. It was only after this that the city of Pune which was once only looked just as a cultural city began to being to transform as an industrial hub. The city is also fondly called the ‘Detroit of India’ because of the huge presence of automobile manufacturing units and component suppliers in the city.

Pune as a city has a huge potential for growth and this was also recently recognised by the Government of India as the city acquired the number two position in the top 20 smart cities list in the country. From a cultural capital to an industrial hub, the city has had quite a transformation over the years.

What makes Pune a smart city ?

PUNESitting right on the second position of the recently announced government’s list of Top-20 cities selected to be developed as smart cities, is the city of Pune. The Cultural capital of Maharashtra, Pune, was picked along with nineteen others from a list of 97 cities submitted by states during a competition held last year. The cities were selected on the basis of their infrastructure, service levels and track record.

A city is earmarked as a smart city when its investments in traditional (transport) and modern (ICT) communication infrastructure and social and human capital give rise to sustainable economic development and a high quality of life to the city residents. Further, a Smart city has the best quality government services including water, waste, healthcare, traffic management and transport.

So, what made Pune make the cut? Here are the top 4 reasons.

1) High Literacy Rate– Education is that strong foundation that can not only help an individual go a long way in their career but also put a city on the the fastrack to development. Pune as a city has been consistently ranked as amongst the topmost cities in the country on several parameters. It’s literacy rate of 01.42 % of Pune Urban Agglomeration (UA) is the highest amongst the top ten urban agglomerations in India. The city comes at 5th position all over the country in terms of literacy.

2) Quality of Life– In the 21st century, all that one is looking for is an international level standard of living at a decent rate in a decent city. The city of Pune fits the bill to the tee. According to data released by “Mercer Quality of Living Survey 2015” which ranks around 440 cities all around the world based on their living conditions, Pune was placed at a decent 145th position globally and at good 2nd position out of the only 7 Indian cities that made it to the list.

3) IT Destination– Over the years, Pune has able to establish itself as a notable IT destination in the country. Home to hundreds of top IT companies like WIPRO, Accenture, Accenture, TCS and Volkswagen, the city sees hundreds of youths shifting their base to the city in need of employment. IT employees are said to enjoy decent salaries with a promising future graph and hence the sector has become one of the driving factors in the city’s development.

4) Education Hub– Crowned with the title of being the Oxford of the East, the city has more than 9 deemed universities and 400 colleges affiliated to the Pune University, offering courses across various streams. Almost 45% of foreign students who come to study in India choose Pune as their education city.

The Smart city Real Estate Boost

Pune for sure has a lot of potential to grow and develop in the coming years and now with the smart city tag associated to it, the development can be expected to take place at a jet-speed rate. This means a golden spell for the real estate sector is in store. According to experts, the city could witness investments to the tune of Rs. 30,000 crores in the next five years because of the new smart city tag christened to it.

In order to compliment the pace of growth, the city has already started with some basic infrastructural development in the city like street cobbling and underground wiring etc. With everything on the track for the city, coming years could see Pune transform into a real estate powerhouse.