Loan Against Property

 

Godrej Capital's Loan Against Property (LAP) is designed to support business growth with high loan eligibility, flexible EMIs, longer tenures, and a wide range of acceptable collaterals. This loan provides substantial funding based on property value, making it ideal for significant business investments and expansions.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Udyog Loan Against Property

 

Are you an MSME owner looking to scale your business operations? Take your business to new heights with Godrej Capital Udyog Loan Against Property. Our loan solutions enable business owners to get higher loan eligibility by allowing multiple sources of income to be considered.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Commercial Property Loan

 

Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Balance Transfer

 

Transfer your existing loans to Godrej Capital and experience the benefits of lower interest rates, flexible repayment terms, and significant EMI savings. Enjoy higher eligibility, along with a top up loan, to take care of your extra needs.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Home Loan

 

Seeking a Home Loan to buy a ready-to-move-in property, an under-construction house, or renovate your current residence? Our Home Loan, featuring low interest rates and flexible EMI plans, is specifically designed to help you accomplish buying your dream home.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Plot Loan

 

Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our Professional Loans for doctors are here to help you. Apply today for a collateral free loan today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our Professional Loans for doctors are here to help you. Apply today for a collateral free loan today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for CAs

 

Godrej Capital's Professional Loan helps CAs in expanding practice, hiring new staff, enhancing equipment, and upgrading services for business growth. Get a loan without collateral and take your career to new heights.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan for MSMEs

 

For MSMEs aiming for growth, Godrej Capital Business Loans for small businesses offer the funds needed to expand their business and manage cash flow. Apply for MSME loan without collateral today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan for Women

 

Are you a woman entrepreneur? Godrej Capital's Business Loans for women-owned MSMEs help them fuel growth and meet business needs without any collateral. Apply for a small business loan today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan

 

Empower your business with Godrej Capital's Business Loan, offering flexible financing solutions to help businesses take the next step for growth. Apply for online Business Loan without collateral today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

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Myth vs. Facts: 4 Home Loan Myths Busted



Myths exist in every sphere, and home loans are no different. Helping you accomplish one of your most cherished dreams, it is all the more important to bust these myths to make sure you leverage the maximum utility out of this offering and don’t end up overstretching your finances.

 

Read on to know some of the most common myths associated with home loans and their reality.

 

Myth 1: You can get a home loan only if you have a high credit score
Fact:
 No, it is not. While it is true that a high credit score eases the home loan application process, you can avail a Home Loan even if your credit score is a little lower than desired. It will, however, carry a high rate of interest. Hence, before applying for a home loan, you must check your credit score and get it in order if it’s not up to the mark.

 

However, if you end up availing a home loan at a high rate of interest due to a poor credit score, cut non-necessary expenses while servicing the loan to make sure the EMIs do not get affected. Take stock of your finances and put such costs on the backburner.

 

Consider the opportunity as a blessing in disguise to rectify your credit score by reducing discretionary expenses and paying EMIs on time. On the other hand, if you can’t afford to opt for a home loan at a high rate of interest, get your credit score in order before applying. Pay existing debts on time, including credit card dues, and keep your debt-to-income ratio low.

 

Myth 2: Shorter the loan tenure, the better it is
Fact:
 While everyone desires to be debt-free as early as possible, it is not wise to do so by putting yourself under unnecessary burden. A short Home Loan tenure reduces the interest outgo, but significantly enhances the EMI amount (see table below).

 

Loan Amount in INRs Rate of Interest Loan Tenure in Years EMI in INR
75 lakhs 6% 10 Years 83,265
75 lakhs 6% 15 Years 63,289

 

An increase in the loan tenure by 5 years reduces your monthly EMIs by approximately INR 20,000. Take stock of your current liabilities, including non-negotiable ones such as children’s higher education, insurance premiums, retirement, etc., and choose a home loan tenure accordingly.

 

As home loan is a long-term commitment, plan your finances in a manner so that there are no hiccups midway. If you are not comfortable with a short tenure, opt for a long one. Apart from reduction in EMIs, a longer tenure allows for better eligibility.

 

Myth 3: Home Loan with a low rate of interest is always the best
Fact:
 Though it is true that rate of interest is one of the crucial factors to look for while applying for a Home Loan, it is not the only criteria. Or rather, it should not be the only judging factor. Home loan with the lowest rate of interest doesn't need to be the best. A home loan with a low rate of interest may entail a higher down payment.

 

Apart from the home loan rate of interest, you need to look at other parameters like:

 

  • The lender’s reputation

     

  • Value-added services like parallel funding

     

  • Home loan disbursement process

     

  • Customer service

     

These things may look small but matter a lot. For instance, you can break the down payment into smaller amounts with parallel funding. This comes in handy when you are facing a cash crunch. It relieves you of the burden of paying a lump sum amount upfront at one go. It helps you better manage your finances during down payment.

 

Myth 4: Home loan prepayment attracts a penalty
Fact:
 Home Loan prepayment allows you to pay your home loan (in part or full) before its tenure. While lenders did levy a penalty on home loan prepayment earlier, the case is different now. If you have availed a home loan on a floating rate of interest, you are not liable to pay a penalty.

 

So, if you have received windfalls in the form of a bonus or maturity of an insurance policy, you can direct a certain percentage of the proceeds to home loan prepayment. Home loan prepayment brings down the outstanding amount and helps you save on interest outgo. This allows you to save and invest towards prepayment.

 

In other words, you can tailor your finances so that you can make periodic prepayments to close your Home Loan before its tenure and be debt-free. Prepayment allows you to make specific investments and channelize your money into avenues that help you accumulate funds.

 

In Conclusion

Lastly, read the fine print before signing the loan documents. Understand the clauses well to avoid surprises later. Get in touch with your lender if you are unable to comprehend any term or statement and adopt due diligence before moving forward.

 

Godrej Capital is the financial services arm of Godrej Group which offers home loans, Loan Against Property and other secured loans. With innovative products and offerings, customers can get hassle-free loans on easy terms and conditions. Click here to know more about the offering.

 

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to the product or service document and/or connect with our customer representative prior to making any financial decision.