Showing posts with label EMI. Show all posts
Showing posts with label EMI. Show all posts

Thursday, July 2, 2020

Affordable Interior Decoration Ideas For Your Apartment


Buying your home in a vibrant city is like a dream come true. But as an amateur, turning your empty house into an inviting place can be misleading. You may have a rough idea of ​​what you want in your first apartment, but your wallet may not support your vision. Also, as you get limited space in an apartment, you may not fit into everything you wanted. While decorating your first apartment, you need to focus on meeting your essential needs while maintaining a decent attitude. As you have to stay indoors for the rest of your life, make sure that its decorative accents reflect your taste and personality. In this write-up, we have shared some simple tips for decorating your apartment.

1) Invest in multi-functional furniture units


As apartment spaces are limited, instead of decorating your home with bulky, luxurious furniture units, you should buy multifunctional fixtures. Furniture such as sofas-cum-beds, diwan beds, and coffee table cum bookshelves help you create a clutter-free minimalist interior. The practice of matching pieces of furniture for the living room and bedroom is more; you can also try odd pieces. But whatever furniture you choose should go well with the overall interior plan.

2) Opt for neutral wall colors


Instead of painting your home in dark and bright colors, you should paint the walls in a neutral shade, such as off-white, light pink, sky blue, or light green. The light colors of the wall paint reflect more light in the room and go well with both modern and traditional furniture units. In addition, it produces a more energetic feel.

3) Use vertical space smartly


When it comes to decorating a small apartment, the sky is the limit. But make sure you use the space properly. You should focus on creating a more functional space while maintaining a clutter-free approach. To give your apartment a minimalistic and clutter-free look, you should focus on using more vertical space and less floor area.

4) Use mirrors smartly


Hanging a mirror and using mirrored accessories is a great way to create a feeling of greater spaciousness. In addition, mirrors can be used excellently to diffuse more daylight in the home and create a luxurious aura. They are an excellent accessory for the dining room, living room and bedroom.

5) Option to look green, nature friendly


The main purpose of creating a green interior is to improve indoor air quality. According to Vastu Shastra, the color green is considered to invite balance and harmony in the house. To achieve this, you must use hardwood furniture as they last for years and also feel fresh. Also, avoid plastic and synthetic things at home. Instead of using synthetic carpets, use cotton carpets. Also, try to keep everything from curtains to walls, ceilings, green or blue curtains. Also, instead of placing miniature sculptures for decoration, you should choose indoor plants.

Monday, June 1, 2020

How to save tax from your real estate investment?

Buying a property is the biggest purchase or investment that most people make in their lifetime and the government realizes this. The government has allowed income tax deduction if the property is purchased on loan. The borrower can claim deduction from 1.5 lakh to 2 lakh under the Income Tax Act on home loans. Entire interest can be deducted directly from income if the property is not occupied by the borrower. These above conditions apply even if the money is from friends, family or private sellers.

There is a problem with the current market situation, as projects are delayed in completion. This in turn causes problems for borrowers. If their house is not fully constructed then the borrowers cannot deduct any interest. A buyer, on the other hand, receives the benefit of the principal amount. Upon possession, the borrower of the property can claim a deduction for the interest paid during the pre-construction period. To take advantage of the current scenario, a couple must take out a joint loan that allows each to claim a full tax deduction for both principle and interest. This also applies to children and parents.

If the borrower has only one house and is self-occupied, there is no taxation in this case, but if there are more houses and it is neither exempt nor occupied, then taxation here can be a bit complicated.  In such a case, the owner should get the national rent value and pay tax on it. An appropriate method is followed to calculate the national price, taking into account the value of the municipal property and the Rent Control Act or the ongoing rental rates of the locality.

If a person is trying to claim a housing loan deduction and Housing Rent Allowance (HRA) at the same time, it causes trouble. Many claim HRAs because they have a home in a different city and live in a different city. The department allows you to claim an HRA in the same city with real reasons, such as if you have a suburb in the city and your office in the city. When calculating the national value of your second home, you can deduct some taxes like municipal taxes and also 30 percent of the value for repairs and maintenance.

When it is time to sell the acquired property, the tax paid is calculated on the profit generated. If it is sold within three years of acquisition, the seller is required to pay Short Turn Capital Gains (STCG) and the time period is more than three years, they are required to pay Long Turn Capital Gains (LTCG) requires surcharge which is more than about 20 percent. If one buys a new asset equal to the long-term capital gain within one year before the date of sale, the entire tax outgo can be saved. This property is under construction. The time period is three years. While calculating STCG and LTCG tax, one can deduct money on corrections and also to acquire assets such as payment of stamp duty, legal fees and brokerage.

Monday, May 25, 2020

RBI extends EMI moratorium - latest update

As India struggles to get back on its feet in the rest of the world, the Reserve Bank of India is exploring ways to make the life of the common man less stressful.

The first EMI moratorium was announced on 27 March 2020 and was to cover debt repayment between March 1 and May 31. As the COVID-19 pandemic still continues, it was clear that postponement expansion was needed. That is why today (22 May 2020), RBI Governor Shaktikanta Das extended the moratorium on loan repayment saying - “In view of the expansion and continued disruption of lockdown due to COVID-19, the decision to allow lending institutions has been taken. From June 1 to August 31, 2020, another three months to extend the moratorium on term loan installments.

How does an extended EMI moratorium help?


About 122 million people lost their jobs due to the outbreak of COVID-19. To add to this, self-employed individuals are struggling to make ends meet due to loss of income during the epidemic. If you are wondering, about 51% of India's workforce is self-employed! This means that a large part of India's working population is now finding it difficult to manage its expenses and pay back its debts.

The additional 3-month extension would provide some much-needed relief to these individuals. They will now be able to take out their loans such as car loans, home loans etc. If they miss an EMI payment then they run the risk of negatively affecting their credit score.

Now that the loan is deferred for 3 months, and money is not deducted from their bank accounts, most people will have little money to watch them until things start appearing.

Important points to keep in mind about EMI moratorium


Although the RBI EMI moratorium is good news for many people, what should you know here-

· The EMI moratorium is not a mandate, it is a competent provision. Banks have the right to decide whether they want to follow it or not. Individual banks will also be allowed to decide whether this moratorium will be extended to all borrowers.

· If you have decided to avail the moratorium, the EMI will be extended with interest applicable to your outstanding principal amount during the unpaid time. This will increase your overall interest cost. If you have the money to manage your loan EMI, it is best to stick to the original repayment schedule, especially if you have a notable outstanding loan amount for a loan against a home loan or property.

· The moratorium prevents payments for principal and / or interest components; Bullet repayment; Equal Monthly Installments (EMIs) and credit card dues.

Repo rate reduction


Apart from announcing the moratorium, RBI also announced a drastic reduction of 40 basis points in the repo rate to 4%. The reverse repo rate has also been reduced by 40 basis points to 3.35%.

Repo rate is the interest rate that RBI charges for the funds to be given to banks. This drastic reduction in repo rates will also reduce the lending rates to banks. Lower lending rates will give people hope to think about reinvesting. It is also said that EMI will come down on home, auto, personal and term loan rates in the near future.

Monday, December 2, 2019

RBI's 25 BPS repo rate cut will not reduce EMI on home loan



After the announcement, the repo rate is 6.25% and the reserved repo rate is 5.15%. This rate cut is the first time in these months. The last rate cut was in October 2019.

This is good news for borrowers. The RBI's decision to reduce the repo rate from 25 bps 6.00% to 5.75% and change the mindset to "neutral" will boost the economy, provide affordable loans to small businesses, home buyers etc. and at the same time, This will promote employment opportunities.


Usually, when the RBI cuts the repo rate, banks usually provide benefits to the customers. If banks decide to cut the rate, home, auto and other loans are likely to be cheaper.

Impact of the Repo Rate cut on Home Loan EMI


Now that the RBI has reduced the repo rates, the EMI of your home loan is likely to be affected, assuming that the banks will pass it this way:

for example:-  (Below details are not fixed, these are flexible with current rate)

Loan Amount (₹)₹ 8000,000
Tenure (Years): 20
Current Interest Rate (%): 9%
Current EMI (₹): ₹ 71,978


When you visit banks for bank loans, they tell you in detail about two types of interest rates i.e. MCLR rate and base rate. As a borrower, here is your EMI likely to be affected by both rates.

Existing borrower under MCLR rates :- Existing borrowers whose loans are linked to the MCLR rate will get a benefit on their EMI "Equated Monthly Instalment" by reducing the bank's MCLR. But only after the reset date of the loans can one get the benefit.

Existing borrower under Base Rate or BPLR :- This is a good opportunity for borrowers whose home loan is still under BPLR or base rate, they may consider converting their existing home loan to MCLR regime to get interest rate benefit. The MCLR and the new external benchmark based governance provide transparency in the transmission of policy rates as compared to the Base Rate and BPLR interest rates. This is why most people go for MCLR and a new external benchmark based regime

Repo rate :- This is where RBI "Reserve Bank of India " lends money to commercial banks.

MCLR Rate :- MCLR "Marginal Cost of Funds based Lending Rate" refers to the minimum interest rate that the bank will charge on the loan; It cannot lend below this rate.

BPLR Rate :- BPLR means "Benchmark Prime Lending Rate". The BPLR was the interest rate offered by a commercial bank to its most creditworthy customers.

Apex Bank :- It is an institution that manages and maintains the money supply, inflation and interest rates of a country. It controls the commercial banking system and acts as the watchdog and regulator of other banks in the country. The Reserve Bank of India (RBI) is the apex monetary institution that controls the Indian rupee, monetary policy and banking system in India.

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