I’m planning for Housing loan after 12 months from now.
Please guide me on certain issues:
– What should be the cash to be maintained in the Saving account of an individual, if for e.g. the cost of properties is RS 1Cr and salary is Rs 1 lacs.
– Do the bank consider the cash in Spouse’s ( plus kid account) account also?
– Do the bank consider in a positive, if the individual is having big corpus comprises of Mutual funds, RD & FD.
– Do the bank consider Insurance Terms plan in positive way.
– Do the bank consider in a positive if one bears Credit card and use only 50% of the limit?
– Do the bank consider in a positive if one clear entire Credit Card outstanding on or before the due date?
If all the above points are strongly positive, then still the CIBIL score do matters even if all the previous loans ( 6-7 years old) are cleared ( no write off, no settlement ).
Please provide me the expert suggestions.
@ Ashal/BR SINGH/Sushil/Manish: If a person is not having Credit Card & also not applied for any loan, then how can he aplly for CIBIL report?
any one can get their CIBIL report. You just need to pay around rs 300-400. You need to go CIBIL site and register. In India generally for home loans bank ask for it. But in my case SBI did not ask for it.
@Yogesh
As said by Biswa anyone can get the CIBIL report.But the person without Credit card/Any Loan is untraceable by CIBIL and they are categorized differently and i assume that they are not given any score as such.
The Report will not be of great use to that person.(except that he can be very sure that there are no loans/credit card on his name given that Physical Identity theft is increasing now a days)
Cibil Report will be there for a person if he ever had a loan/credit card.
Dear Yogesh, if you do not have any past history of loans (personal, car, home, credit card….), there ‘ll be Credit report for you. In case you do not have any of the loans, your Cibil report ‘ll not be there. Please do not worry – for people like you the data from CIBIL ‘ll be reported as no record. Bank ‘ll accept it.
Thanks
Ashal
@BR SINGH: I’m fully aware of the CIBIL Report. Whatever problem are there I’m working on it and I’m confident to correct it. Also as compare to FD my analysis is that Cash Management Funds are more appropriate as compare to FD & RD. Please comment if you are having different view or learning.
My reason was based on the fact that this the amount you have saved for buying house and that too in a year. So its better to keep that money in FD so that you will be getting guaranteed return. I mean you can not put that money into any kind of risk for the time being. If you are planning for long term investment then definitely funds give better return then FD and RD. In one or two year you are not going to gain anything significant so keep the ur money in a safe place so that you can invest in house which definitely a very big investment.
I dont think you have to maintain any monthly average balance. If you have your initial 20% then that is fine. If you have money then first thing that you have to worry about is your CIBIL report. Go to http://www.cibil.com/ and get your CIBIL score. If its fine then only think of going for a home loan. If any prob then please fix it before applying home loan. This is really improtant do it first.
As you want to go for a home loan in one year my take will be to have a FD of the whole money.
@ Sushil: Dear Sushil, I knows the banks give 80% loan. My major concern is right utilization of my cash. Thats why I m thinking should I built up more cash in saving account or park it in MF atleast for a year so that it grows comparatively better. Second Question again: If I opt for MF, then there are three options: 1) Equity based – Not good for a year. 2) Cash Management Fund – Slightly better than equity based fund and saving account for a period of 1 year. 3) Debt Funds – Best for a smaller period of say 1 year. (IN ANY CASE EQUITY FUNDS ARE BEST FOR A LONGER PERIOD)..
Your views on this…
Ashal & Manish… Please contribute on this.
@ Sushil & Ashal: Yesterday I was talking to one my known in AXIS bank ( Housing Loan div) and one in LIC Housing Fin. As per both of them, one should have average cash balance in Saving account equal to EMI amount that he/she is planning for Housing loan. Where as my financial adviser friend said that it is not required. Please guide me on this……
Dear Meutsav70, I’m sharing my personal experience. My salary account is with Bank A & primary account is with Bank B. While applying for home loan in SBI, I provide only Bank A (the salary account) details for last 6 months transactions & the balance in account was never ever near EMI amount as on the salary day itself, I were transferring maximum amount to my primary account.
Yes in case SBI asks you to provide the details of primary account also, then you w’d have to provide the same.
Thanks
Ashal
Dear Meutsav70, most of the things are already discussed by dear Sushil Kumar. I want to add, Yes the CIBIL report & score ‘ll still impact the final decision of bank regarding your home loan. All other things ‘ll create an over all positive picture.
Thanks
Ashal
you will get approx 80% of loan amount.. so you have to prepare yourself for 20% to pay yourself… in your case 20L and you need to save accordingly… there is no as such requirement that x amount should be in your saving account before applying loan… but bank looks into last 3 statements to see cash flow, CIBIL report to check your credit history, calculation of loan amount which can be granted based on your salary etc`
You can make spouse as co applicant to have better amount granted for loan
Bank looks into property you own, FDs, cash including any liabilities on you in term of any existing loan etc
credit card purchase is not considered but repayment history is considered