WHAT IS LOAN TAKE OVER?
Take Over of loan or Balance transfer of loan is a facility where the loans are running at a higher rate or offer to same other bank for take over at lower rates. Also there are other puposes for taken over loan such as:-
1. Enhancement of loan amount.
2. Facilities & services are offered by some other bank,
3. Release of some extra collateral etc.
WHO CAN TAKE?
Following categories of individuals, in the age group of 18 to 55 years, including Non Resident Indians (NRIs) are eligible for take over loans:
- Salaried person.
- Individuals engaged in business
- Individuals engaged in profession like, doctors, chartered accountants,architects and others
INCOME CRITERIA
A person looking for Take Over Loan may derive income from various sources like , Salary, rental Income, Business Income , Interest dividends etc.
However banks are considering incomes which are recurring in nature . Recurring incomes are Salary, rental incomes & business incomes etc.
However non recurring incomes cannot be the base for providing Take Over loans. Non recurring incomes are Capital gains, speculations incomes, horse riding, gambling, lotteries etc.
Salaried persons :– Min. salary of person should be 15000 per month
Self Employed :- Min. Income Tax Return should be of 3 Lacs.
Due to increase in competition, banks are coming with innovative products where in case of person (other than salaried) incomes are derived on following also:-
1. On the basis of Average monthly Banking Balances
2. On the basis of Repayment tracks
3. On the basis on Annual Turnover achieved
4. On the basis of Rental Incomes etc.
TOP UP LOAN
Top up Loan is a additional loan, which bank offers on existing loan from bank.
Now a days, many banks are luring the customers transfering of their loans & get up to 20% to 30% of loan amount at same rate.
ELIGIBILITY CRITERIA
Generally any type of lender checks the repayment capacity of the borrowers. Salaried person have a limited source of income & it is assumed that salaried person can pay maximum 50% to 60 % of his net salary as an EMI.
Similarly, repayment capacity of the self-employed person is calculated on the basis of his ITR filed. Thus 50% to 60% of monthly income shall be taken as repayment criteria for this category.
Note: – 50% to 60% of monthly income is just as a benchmark not a watertight compartment. This can be varying on the basis of other incomes & standard of living etc.
HOW TO INCREASE ELIGIBILITY?
The most toughest question for any layman to estimate his loan eligibility.
The eligibility for take over loan is inversely proportional to the interest rates. When there is a rise in the interest rate, the prospect for loan eligibility gets tougher& vice versa.
General criteria for increase in loan eligibility
1) Increasing the loan tenure
Opting for higher tenure is one very simple method to enhance your Take Over loan eligibility. The reason behind this is the reduction in EMI payment with the increase in tenure. In spite of higher tenure, interest rates and principal amount will remain unchanged in this option.
2) Repaying low tenure loans
Home loan eligibility may be affected when an individual has other outstanding loans such as car or personal loans. Since Car Loan / Personal loan’s tenure are lower and resulting in higher EMI. Thus its better to prepay the lower tenure loans and get higher eligibilities of Take Over Loans
3) Clubbing of incomes
Clubbing the income of spouses/ son/ father/ mother is yet another way to increase the loan eligibility. Generally, income of Spouse and direct blood relatives are eligible for calculating higher loan eligibility.
4) Other incomes
Besides salary/ Business income , generally people are having other recurring incomes like rental incomes, interest income, agriculture incomes etc. Banks are also taking certain percentage of such incomes also to derive the Take Over Loan eligibility
5) Perks
Salaried individuals, while computing their income must make sure that variable sources of income such as performance-linked pay and others are taken into account. This will subsequently enhance the loan eligibility of the individual.
BENEFITS THROUGH Makemymoney
We offer best services and benefits in terms of functionalities are as under:-
1. Comparison between different banks.
2. Calculation of saving through balance transfer calculator.
3. Customized and self explanatory eligibility & quotes.
4. Self evaluation of loan eligibility.
Benefits in terms of services:-
1. Best ROI and fees.
2. Free tax planning by tax experts.
3. Hassle free & door step services.
