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Choices That You Have When You Default Your Home Loan EMIs

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Choices That You Have When You Default Your Home Loan EMI.

Getting a home loan is not an easy task, especially with all the paper-works and formalities associated with the process; but once it is approved it’s certainly a huge relief. However, have you ever wondered what will happen if you default on your home loan EMIs. There could be lot of reasons when a person is not able to pay the EMIs. Financial crunch, illness, accident etc. could be certain situations when a person might be unable to pay his EMI. So, what are the choices or options one has in such a situation and what are its consequences.

Having a solid back up plan is the key while taking a home loan, so that if something goes wrong you aren’t caught in a bad situation. These are certain points that you can consider:

Always make plans for alternate funding options

It is advisable to make contingency financial plans in advance to counter any emergency. Experts suggest that you should plan for at least six months of emergency expenses to cover any temporary cash crunch. You can also opt for un-employment insurance in case of loss of employment. In India, such polices are available as add-on on basic insurance policies that can cover up to 3-6 months’ EMI, if you lose your job.

Short Term Finance

You can take a personal loan or credit card loan in order to pay the EMI, but as a temporary solution. Only if you are expecting funds from other sources in the near future then you can opt for these options otherwise you will end up in further debt. You can also break a fixed deposit or take loan against a security.

Selling the Property

In worst case scenario, when the borrower realises that there is no possibility to pay off the loan then the best choice is to sell the property. Although the borrower might have to sell the property at a discounted rate, but will still be able to repay the loan. In India, banks don’t offer home loans more than 70-80% of the total cost of the property; in some cases it might be even lower. If the borrower decides to sell the property through bank then it might take some time plus the auction rate might be lower than market rate. So, the borrower can inform the bank about his/her intention to sell the property in which case the bank may grant him/her 2-3 months period to sell the property and repay the loan.

Consequences of Default

Banks are not that lenient when it comes to default on home loan EMIs. They might even impose The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), after couple of defaults. They can even repossess the property in case of a secured loan. Banks might be lenient in very rare circumstances such as disputed property, nominal outstanding amount, selling the property on behalf of the borrower etc. In these cases, banks might offer you alternate solutions such as unsecured loan, reducing the EMI amount and increasing the tenure of the loan etc.

When you default or restructure your loan, it directly affects your credit score. There is a substantial weightage given to secured loan while calculating credit scores. So, if you default there is a drastic impact on your credit score, on the other hand the damage might be a little less in case of a restructured loan even though it will still impact your credit scores. It might also cease the chances of the borrower to obtain any loans in future.

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Nagpur One Of The Big Potential Cities For Affordable Housing

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Nagpur One Of The Big Potential Cities For Affordable Housing

According to a report released by CREDAI Nagpur is among 45 potential cities that are projected to drive the demand for affordable housing. The ‘Dawn of India’s Future Cities’ report was released at the two-day New India Summit organized by CREDAI in the city.

As per the press release issued by CREDAI, Lucknow, Jaipur, Kochi, Bhopal, and Ahmedabad are some of the other main cities included in the list of 45 cities. The New India Summit will focus on the opportunities in Tier II and III cities of India.

As per the release, “Driven by investments in infrastructure, affordable housing, skilled workforces, these cities can potentially see accelerated growth in the manufacturing, tourism and warehousing sectors, and emerge as India’s new megacities”.

The release further added that the study based its findings on key parameters such as socio-economic momentum, enhanced connectivity infrastructure and high-value indicators. With a sharp-focus on real estate, it identified areas of opportunities for developers while reiterating the impact of regulatory changes on the sector.

The study suggested that the country needs new cities to augment its growth. Initiatives such as ‘100 Smart Cities’ and the Urban Rejuvenation Scheme — AMRUT— will provide emerging cities with a blueprint for becoming the next flagbearers of development in India.

“India’s demographic capabilities bring a huge opportunity to match the world’s economic superpowers. This opportunity also brings with it challenges such as developing new urban centres,” said Jaxay Shah, CREDAI’s national president.

Geetamber Anand, CREDAI’s chairman added, “The Nagpur summit will help builders gauge the opportunities in smaller centres. The Tier I cities are already overcrowded There is a clear need for new cities to be developed as the growth engines of the country”.

Union Surface Transport Minister Nitin Gadkari also addressed the meet through video conferencing.

Also Read: Pune Smart City Targets Rs 100 Crore Grant From World Bank

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Badlapur – The Right Investment Zone

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Badlapur – The Right Investment Zone

Part of the district of Thane, Badlapur is one of the fastest growing areas in the MMR. Mumbai is one of the costliest cities to invest in while neighbouring areas like Thane, Badlapur, Kalyan, Navi Mumbai and others have become attractive destinations to invest in.

Badlapur constitutes of 4 small villages, i.e. Katrap, Kulgaon, Badlapur and Manjarli. There are several reasons why Badlapur is becoming the preferred choice and the most recommended option when it comes to investments and properties.

Nature lovers prefer coming to Badlapur for its scenic beauty around itself with greenery, waterfalls, hilly regions, etc. Badlapur is also a popular weekend getaway and picnic spot for the people of Mumbai. With quiet and peaceful surroundings and comparatively cooler temperatures, there is no second guess as to why the people also love to settle here.

Its proximity to Mumbai gives the people another reason to settle within Badlapur permanently. With flawless connectivity in terms of both roadways and railways, the commute is quick and smooth. The Badlapur road is connected to Thane from one side along with the Mumbai Pune Expressway at another side. The Neral-Badlapur road will trigger an exclusive transit system between Kalyan and Karjat. Some of the roadways are under development, the gateway to Khopoli being an example.

The town is divided into the Eastern and Western region as the railway line runs in between it. The nearest railway station of Kalyan serves as a junction, connecting it to many major cities across India. Badlapur lies along the central line of Mumbai suburban railways. Stations like Thane and Dadar are located within a 40 kms radius from Badlapur station.  

Badlapur is about 50 kms away from the international airport and about 30 kms away from the Proposed Navi Mumbai airport. Badlapur East has excellent connectivity through NT buses as well. The smooth connectivity has played an important role in the elevating Badlapur’s real estate scenario. The Monorail has been proposed by the RDA authorities that will connect from Badlapur to Bhiwandi and Thane or Kalyan to Badlapur.

Badlapur has a well developed social infrastructure. Reputed schools and round the clock medical facilities make the town a preferred choice. It is one of the best locations that meets the criterions of a budget, proving the perfect locality, basic amenities and an evergreen environment. People are also moving to Badlapur for employment opportunities as it is home to all types of companies and banks.

Badlapur has huge land parcels and a steady pipeline of projects. Both East and West Badlapur offers affordable home options as well as properties that are well planned and well designed. With the transformation of the skyline of the town, it is sure to give opportunities for better returns in future.

One of the plush club residencies present within Badlapur is offered by Tulsi Estates. Tulsi Signature offers 2, 3, and 4BHK quality homes and has only 112 limited edition club residences. It offers a community and a lifestyle that is chic and sophisticated, yet ultimately secure and comfortable. You will find yourself part of a nurturing community; a private paradise that you will be happy to reside in. The architecture is grand and every minute detail has been taken care of. Tulsi Signature defines your taste and style in its finest masterpiece.

Also Read: Tata Value Homes Launches “Offer Of The Century” With 99 Hours Flash Sale on Affordable Homes

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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