Buying a home, especially a 2 BHK flat or a luxury apartment means investing a huge sum of money. But arranging for the hefty sum of amount is not everyone’s cup of tea. Thus, the majority of us opt for a home loan to purchase a property.
Banks and financial institutions, however, do not sanction the entire cost of the property as a home loan. They do not take into account the stamp duty and registration charges while computing the cost of the property. Thus, it means that some portion of the cost has to be borne by the borrowers. This portion depends upon the loan amount. Higher the loan amount, higher the percentage of margin money.
Below are the five ways in which you can raise margin money.
- Liquidating savings or taking a loan against investments: People have a considerable amount in fixed deposits, bank accounts, mutual funds and shares. Depending upon the requirement, these instruments can be liquidated. However, at times, there might be a case that investment in mutual funds or shares may not be generating any profits. At such times, one can avail a loan or overdraft facility against such instruments.
- Loan against insurance policies: If you have life insurance policies which are not pure term plans, then you can avail loans against such policies. However, such loans are subject to the number of years the premiums have been paid, minimum loan amount required etc. It is better to avail loan against insurance policies as such loans come at a cheaper rate of interest.
- Withdrawing funds from Provident Fund: Provident Fund amount is meant to be used after retirement; however, you can withdraw some amount from your account. If you have been contributing to your PF account for past five years, then you are allowed to withdraw a specific amount. Similarly, if you have contributed for at least six financial years to your PPF account, then you can withdraw some amount from it as well.
- Loans from friends and relatives: If you are still short of margin money, you can borrow some amount from your family and friends.
- Personal loan: Personal loan is the last resort if any of the above doesn’t work or you are still running short of money to arrange for the margin money. However, getting a personal loan is a tricky process. Since you have already applied for a home loan, you may not get a large amount as a personal loan. Also, the interest rates on personal loans are very high.
So if you are looking to buy a property on the outskirts of Mumbai, Panvel is the best location. Hiranandani Fortune City is one of the best townships coming up in Panvel. You can check out 2 BHK flats in Panvel developed by Hiranandani Communities at Hiranandani Fortune City