Eight Things to Consider Before Getting a Car Loan in India

Buying car is certainly a great feeling for many who own it for the first time. But it can be a daunting task for a layman in the industry, especially when you opt for a car loan in India. However, there are several things you need to consider before deciding on getting a car loan. Because, proper planning is the key to save money in any kind of investment. Following are the few steps you need to consider before buying a car loan in India.

Check Your Credit History If want to get a car loan, lender would first be interested in knowing that you can pay the EMI and you are by no means a delinquent in debt. So make sure you review your credit history and carry no debts before getting the loan.

Eligibility Eligibility check is very important, as not every bank will offer you loan if you are below 18 or so. And further you should also be ready with proper proofs and identities. However, below 18 can apply for car loan in the name of their father and then finance it.

Market Research Once you are clear on credit history and eligibility do a thorough market research about the car you want to purchase. Because proper research will give you more options that are suitable for your budget.
Rate of Interest Obviously this is the first thing you need to consider as it is the most crucial factor. Auto loan in India can approximately lie between 8% to 16% of interest, so you need study carefully which bank can offer you the best interest rate.

Taxes and Down Payment When buying a car loan in India, the bank or the finance firm will ask you to pay a particular percentage of money as down payment (for example 10%). Lot of finance companies that may not ask for down payment can turn out expensive, so making some amount as down payment would save your money taxes as well.

Third Person Guarantee Any finance company or bank will ask for third person guarantee, so you will have to be ready with a friend or relative who can assume liability in case you default the payment. Some bank may avoid this clause if you carry good credit history.

Processing and other Fee Some banks in India will not charge you processing fee for the loan, but some finance firm could charge you approximately 0.3% to 1.1%. Also be clear on how much will the bank charge penalty in case of missed payment.

Negotiation is Possible Most people are not aware that negotiation in the loan
is possible. It's a myth to think that loans carry fixed rate of interest, you can certainly bargain with the bank and get the best ROI for your car loan.

Buying a car is a dream for most people and hence need careful consideration to it. Check out various info available about particular bank that you are approaching for car loan in India. Calculation of EMI, down payment and taxes has to be done personally by you, instead of relying on the lender. So go step-by-step before you close the deal!

New Government Initiatives To Boost Real Estate Sector In India

At the Government level many new policy initiatives have been taken recently to boost the real estate Property in India . These policy decisions will lend a stimulus and impetus to the industry. It is beyond doubt that the new initiatives will unlock the potential of the sector. Also, along with the stimulus package announced by the Government, the Reserve Bank of India (RBI) has taken a definitive step whereby banks are allowed to devise new schemes beneficial to the property sector.

As part of the Government initiatives to boost real estate boom sector India, RBI has declared concessional schemes for the real estate sector. Such initiatives include:
Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states.
In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres.
51 per cent FDI allowed in single-brand retail outlets and 100 per cent in cash-and-carry through the automatic route.
Full repatriation of original investment after three years.
Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively.
100 per cent FDI allowed in realty projects through the automatic route.

Further, in its endeavour to initiate new policies to boost the real estate sector in India, the Ministry of Commerce and Industry, Government of India, has taken steps to reduce the time taken to develop special economic zones (SEZs) by simplifying the procedures to get the tax-tree industrial enclaves notified. Now developers can easily get their land classified as an SEZ at the outset itself by producing title deeds to prove their ownership. Again, the Government has announced several concessions in the Budget 2008-2009.

New Government initiatives to boost sector of Real Estate India include granting a tax holiday on profits from initiates in the financial year 2007-2008. In order to enjoy this benefit, the housing projects should be of the affordable housing unit type of 1000 to 1500 square feet. Another condition is that such projects should be completed by March 1, 2012. Further, the Finance Ministry has allocated US$ 207 million to grant 1% interest subsidy on home loans up to US$ 20, 691. In order to avail this benefit, the cost of the home should not be above US, 382. It is believed that these initiatives will be add further impetus to the real estate sector in the country.