Annual Credit Report

Find Information on How to Get Your Free Annual Credit Report and Credit Score.

Free Credit Reports All 3 Bureaus

How To Arrange The Down Payment Amount For Home Loan | Home

Buying a property and funding it through a home loan requires a good amount of planning from a financial perspective as it is a major financial commitment.

Financing a property purchase through a home loan has many benefits. Therefore, sound financial planning is needed to reap all the benefits available. Interest rates have gone up across the board over the last couple of quarters as a result of the monetary policy tightening moves by the Reserve Bank of India (RBI). Also, the RBI has recently increased the weightage on medium and big ticket home loans (loans above Rs 20 lakhs) by increasing the limit of margin money requirement. The RBI has increased the margin money requirement in order to impose a check on liberal financing of homes.

Borrowers are now required to pay margin money of at least 20 % of the value of the property, which was earlier between 10 and 15 %. This means a borrower will have to arrange funds equal to 20 to 25 per cent of the property's value at the time of availing the home loan on his own.


Liquidating savings is an easy way that comes to mind when trying to put together a large sum of money. One should try to collect as much money as possible by liquidating savings.

However, it is important to keep some savings for contingencies and not exhaust the complete reserve.


Loans on Savings - Sometimes, it is not wise to liquidate savings due to certain reasons like prematurity charges, higher returns expectations in future etc. In such circumstances, taking a loan on the savings can be another way to arrange the funds needed.

However, the quantum of money you can arrange this way is lower as a loan available against savings instruments varies between 50 and 75 % of the value of the instruments.

Also, the interest rate charged on a loan against savings instruments is higher than the returns on the instruments. Therefore, one should take a decision cautiously on liquidating savings or taking a loan against savings instruments.


Many employers offer soft loans to their employees. One can look at this option for a part of the funds.

It comes at low cost with respect to other soft loans due to zero or reduced rate of interest.

However, on the other hand, taking loan from the employer will result in a drop in monthly take-home income and needs to be planned accordingly.


Some banks offer soft loans or top-up loans to bridge the gap and reduce the margin money requirement.

However, these top-up arrangements come at much higher interest rates and borrowers should be careful while going in for them.

Original article published on PubArticles.com

Next page: Equifax Free Credit Report


Bookmark/Share This Page:

ADD TO DEL.ICIO.US ADD TO DIGG ADD TO FURL ADD TO NEWSVINE ADD TO NETSCAPE ADD TO REDDIT ADD TO STUMBLEUPON ADD TO TECHNORATI FAVORITES ADD TO SQUIDOO ADD TO WINDOWS LIVE ADD TO YAHOO MYWEB ADD TO ASK ADD TO GOOGLE ADD TO MAGNOLIA ADD TO NING ADD TO RAWSUGAR ADD TO SPURL ADD TO TAGTOOGA

  Bookmark and Share

Recommended Products

Get The Debt Help You Need

First Choice Capital Resources - offers a fast, secure, and private way to borrow the Cash you need! Borrow Cash now and have ample time to pay it back.

Get up to $5,000 to use in any manner you like
60 second Cash approval
Great repayment terms
Bankruptcy and poor credit OK
Fast, secure and confidential

Getting the cash and credit you need has never been easier. Fill out one simple online profile and we will match you with multiple lenders. No lines, no hassles and no paperwork! Click here to Sign Up Now.

Credit ENHANCEMENT

Receive Full-Service Credit Enhancement

Start getting your credit back to where it should be by monitoring and managing negative items that may be unjustly counting against you on your credit report. We recommend a company called Riverwalk Credit Solutions to help you correct inaccurate credit items and get your score as high as possible.

Get immediate access to your credit profile, quickly analyze your credit items, and instantly begin disputing the errors and inaccurate items on your credit report.

  • A full-service credit enhancement program for a low, affordable price.
  • Fully compliant with all Federal regulations, including the FCRA and CROA.
  • Improve the accuracy of your credit reports at all 3 major Credit Bureaus.
  • It's easy - we're here to help you every step of the way.
  • Begin your Credit Enhancement now. It takes just minutes to get started.

Click here to fill out the form on the next page and a credit specialist will contact you to discuss your