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Dewan Housing Finance Corporation (DHFL), the bankrupt housing finance company under financial tightness, corruption charges and bank debt, has got a new owner. Piramal Group Chairman Ajay Piramal has become the new owner of DHFL. DHFL creditors have approved the bid of Piramal Enterprises. DHFL said in a regulatory notice sent to the stock exchanges on Sunday that the bid of Piramal Enterprises was approved at the COC meeting held on January 15, 2021. DHFL said, the Committee of Creditors accepted the offer from Majority to Piramal Capital and Housing Finance Limited under Section 30 (4) of the Insolvency and Bankruptcy Code (IBC).  Piramal's proposal from DHFL's Committee of Creditors (COC) received 94% of the vote, while the other contender for the deal was American's Oaktree Capital with only 45%. Let me tell you that minimum 66% votes were required to win this bid. Ajay Piramal has managed to buy DHFL despite a lower bid from Oaktree Capital. Ajay Piramal's company...

When you apply for a loan whether it is a personal, housing or mortgage loan, the first and foremost aspect banks look at, is your ability to repay. Although, there are other specific criteria to be fulfilled by every applicant, the following are the basic points or rather calculations based on which your loan eligibility is determined. It is not all that difficult to understand how these calculations are arrived at, in fact if you are able to work it out on your own then you can find out what will be the maximum loan you can avail, irrespective of which bank you apply to. 1) IIR- Installment to Income Ratio Banks understand that your loan value should not exceed your repaying capacity. This ratio is 33.33% to 40% of your monthly income. Using the IIR, how much you can borrow as well as repay will be decided by the bank. For instance if you earn Rs.50,000 per month, then your IIR is Rs.16,500. That is, the maximum emi payable by you is not more than 16,500 per month. This determines yo...

A loan against property (LAP) is precisely what its name implies - a loan that is paid out against a property mortgage. The loan is offered in relation to a specific percentage of the market value of the property, which is approximately around 40-60%.  In India, LAP is categorized under the 'Secured Loan' group where the borrower shows his property as security, which can be a self-occupied ownership property or a rented out property (both residential and commercial). It's not necessary for the property to be a constructional structure. It can be a piece of land as well. LAP usually comes with an interest rate of 12-15.75%. In India, maximum tenure offered for a LAP is 15 years. Starting the process If you want to take a loan against property, the first thing you need to do is to shop around for a lender. Use the internet to learn about the eligibility criteria of a LAP and this is likely to vary from one bank to the other. In general, most banks would ask for the following ...

When a bank offers you alluring interest rates that seem better than the bank you've currently availed your home loan from, you may be tempted to transfer the loan. But remember the point that every bank has its own marketing strategy and things may not be what they seem from the exterior.  It is imperative that you know the details of a bank's offer in-depth. There are other important things to take into account than just the interest rates of your loan. The following are the things to consider when you are transferring your home loan. Compare the Total Outflow While a new bank can draw you by its side by offering reduced EMIs and elongating the time period of your loan repayment, you should be aware that this can increase the total amount you are to pay in the end due to the constant addition of interest rates to your outstanding loan amount.  If your current EMI is higher than what the new bank offers, you must compare the total outflow of the two banks before you shift. Un...

  What is a home loan? A Home Loan is a loan, or financing, that you take for the purpose of buying or renovating your home. The facility of Home Loan makes it easier, and more affordable, to make or buy your dream home.  Most banks and many different kinds of financial institutions offer home loans to the public at fairly low interest rates. Whether it is for the purpose of buying a house or apartment, or constructing one, a home loan can be the simplest route towards achieving your dream. How much can I get? The actual amount of the loan you are eligible for, or can get, varies, and depends upon many factors such as your capacity to repay it, your age, your family income, the number of dependents you are responsible for, and so on. The amount of the loan will also depend upon the tenure of the loan and the current interest rate.  Tenure is the total amount of time that you are given for the repayment of the loan. Most institutions and banks will extend home loans for th...

If someone wants to take a loan and asks for your advice, you probably are more than willing to help, but do you really know what a loan is, what you should know before plunging into the ocean of loans. Now we all know loans are available for the purchase of houses, consumer electronics, refurbishment, education, marriage, health and many other reasons that are not possible in your current budget. The Big Question This brings us to perhaps the biggest question that needs an answer. That question is- Is it worth taking a loan for vacations if it is paid back? The answer is NO. A loan is meant to make funds easy in the pocket but not for entertainment purposes. A loan should only be used for productive reasons and a vacation is not on the list. A loan should only be used for buying a commodity like house, car or to pay a big utility bill. Point to Consider One should consider taking a loan only if it is really required. After all, there is no sense in paying interest for a long period, u...

An EMI Equated Monthly Installment is a financial term used in loan repayments. It's a quick and easy method to pay off any type of loan. When a borrower takes a loan from a bank or NBFC, the repayment of the loan is done mainly in specific monthly installments.  These fixed financial installments are known as EMIs. The amount of EMI is dependent on the principal loan amount, tenure and the interest rate. This monthly installment or EMI amount is supposed to be paid on a fixed date to the bank by cheque or by electronically. Throughout the loan tenure the EMI amount changes or remains the same? The changing of EMI amount depends on what choices the borrower makes while opting a specific EMI plan and paying it. Floating Interest Rate: If the borrower opts for a floating rate of interest, the amount of EMI will change every time a new floating rate is set by the lender. But the borrower can ask the lender to change the tenure of the loan instead of the amount of EMI. Prepaying the Lo...

Are you also among those facing a tough time getting your bank loan approved? With economic recession increasing at an alarming rate the bank lenders have made money lending policies more stringent. Thus, your application should be spotlessly perfect to avoid any doubts in the minds of the investors. So, if you want lenders to review your application and grant it without creating any problems, then these guidelines should be kept in mind. • Know your preference well: Before making a move to the bank with your application it is advisable to check all the loan options available online which are being offered by other rival companies. This would give you an idea of what kind of loan you are looking for, whether its terms and conditions are feasible for you, and time for repayment which should be as short as possible. If you are looking for some specific type of loans like an auto loan or mortgage loan then do a research work on all the deals available to get the best deal. Nowadays, you a...