Choose The Right Lights For Your Sweet Home

Decor

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December 30, 2023

Besides illuminating your house, lighting plays a vital role in impacting the moods of its occupants. Not just internally, lighting has an equally relevant effect on the outer components, such as verandas, gardens, balconies, etc. Following are a few tips that one should take into consideration while defining appropriate lighting provisions within the home:

Defining your lightening goals:

The purpose of the lighting must be clearly defined before defining the lighting elements. For example, direct light is prohibited in the work area, while bedrooms require soothing lights. As lighting plays a vital role in altering one’s mood, a function you want your lighting to serve needs to be defined first

Multiple light sources for every place:

To achieve a variety of functions, adequate lighting must be provided in areas like the living room and kitchen. A floor lamp nestled on a couch in a living room or counter lighting in a kitchen can add gleam to your house.

Modern decor with recessed lighting:

From a subtle dim to a bright light, recessed lights in homes play a vital role in defining the lighting of a house. Areas like the kitchen or any workroom require the right lighting options. Bedrooms should be illuminated in a soft and subtle way.

Night lighting for kid’s room:

Night lights help prevent children from getting scared at odd hours. Your collection of nappy-changing pictures to rocking infants to sleep, lights can highlight all this perfectly. Kids’ room lighting should always be pleasing to the eyes.

Using Chandeliers:

Buying a chandelier for home decor without giving due consideration to space available within the room, may put the entire arrangement into chaos. Varieties of Chandeliers are available within the market with different textures and vibrant colors. Choose one following the space in the room say the height of the chandelier shall not exceed the headroom below it.

Just like the colors, lighting can enhance your space and can appropriately add a feel of warmth!

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Simple Ways To Add An Ethnic Touch To Your Home

Decor

By

Shivam Tomer

-

December 26, 2023

If there is any look that can never become outdated, it is the ethnic look! From clothes to accessories to anything and everything, ethnic has always been loved and appreciated by people. And when it comes to decorating your home, ethnic is the best look that you can opt for. Apart from looking extremely beautiful and classy, it gives a very welcoming and warm feel to the people who visit. Guests feel home when they visit a home with an ethnic touch. We know that now you people are greatly inspired and want to know the fantastic ideas to give your home an ethnic touch!

So here we bring for you some basic and easy ways to let your get an ethnic make-over! –

1. Lighting accessoriesNo matter how many modern lamps you keep in your home, it is actually the traditional ones that add a warm touch. Buy lamps that are made of earthy elements as they give out a traditional and ethnic appearance. They are going to add immense amount of charm to your home which lamps made of fiber or glass cannot even imagine doing! Apart from this, you can also buy lamps that are handmade or at least look like they are handmade, like, the lamps with warli paintings, madhubani paintings etc.

2. Wall decorationThe wall decorations have a huge role to play in giving an ethnic twist to your home. You can hang madhubani and warli paintings which look evergreen or cover the wall with sawzi bowls to completely give an ethnic transformation. You can also cover the entire wall with woven hangings or draperies.

3. FurnitureIf you have got the perfect ethnic furniture, then it can alone make your home look ethnically beautiful! Furniture made of cane and wicker looks the most appropriate and even a sofa in a bench style works interestingly for an ethnic theme. You can also experiment with handmade cushion covers!

4. ArtworkIf you want to get a perfect ethnic living room, then the artwork should be properly focused on. These include terracotta, traditional dolls and puppets, handicraft items, pots etc. and you can always experiment with antique and vintage accessories like copper vases, wooden lampshades, terracotta pots etc. to enhance your home with rustic charm!

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How to Acquire Government Land in India

Investment Advice

By

Shivam Tomer

-

December 21, 2023

Government land is not for everyone to invest in or lease; buyers in these situations must adhere to certain procedures. Land is a state subject, so the state government has the authority to determine whether any land it owns will be sold to private buyers. Notably, once such land is acquired, it can be used for various purposes.

State-owned land can only be purchased for designated uses, such as industrial, IT parks, residential development, and agriculture. The following is an overview of the information that you should be aware of regarding government land acquisition and the application process:

Considerations for Buying Government Land

Here are some important things to remember when purchasing government land:

The state government will publish an official notification whenever it wants to sell any landholdings.
Look out for announcements where land in different states is sold or leased under specific schemes.
You can also check the state website to learn more about any available government land purchase or lease schemes.
You can also submit an official application to the District Collector (DC) of the locality where the land parcel is available.
In your application, be sure to state why you are purchasing the land.
If the government has already designated the land for agricultural use, you won’t receive approval. Be sure to thoroughly research the land parcel before applying.
If you are interested in purchasing land to build a home, you should be aware of state government programs that offer land parcels to citizens at reasonable prices; however, these plotted options are only available on a leasehold basis.
You should be aware of several factors and conditions when purchasing land under government programs, including eligibility requirements, domicile status, and lease period.
If the government leases out land, the state will retain final ownership.
You cannot buy government land for profit-making.

What are the reasons you can lease government land?

The following are some reasons you can lease government land:

Agricultural purposes

Selling, leasing, and disposing of agricultural land is a state matter with many facets. Each state government has its own rules regarding selling or leasing land to individuals who are not involved in agriculture. The Karnataka Land Revenue Act, for instance, gives the government the authority to sell land it owns to any non-agriculturist; the procedure for acquiring such land entails submitting an application to the local DC, which should include the rationale for the land purchase.

The buyer must begin farming within twelve months of the application, meeting the pre-laid conditions and eligibility requirements. The buyer’s chances of receiving land allotment are contingent upon the quality of the land; non-arable soil and wasteland have lower chances of allotment than land with suitable irrigation and cultivable soil.

House building

Allotment of land parcels in government layouts initiated by lotteries or other mechanisms for general buyers; in the absence of such a scheme, you can still apply to your local land revenue department, asking for an allotment; however, the chances of your application being successful are on the lower side. Government owned land is offered to buyers under various initiatives through government schemes that are announced periodically. Several municipal and city development authorities often release these land-buying schemes.

IT parks and industrial projects

Under state industrial policy, information is available regarding the allocation of land for commercial projects; an application can be moved with a suitable proposal, and leases are the preferred model under these industrial schemes or projects for IT park development.

Bottom Line

Prospective buyers must navigate a series of considerations and steps when venturing into government-owned land acquisition. The importance of staying vigilant for official notifications, exploring state websites for relevant schemes, and submitting detailed applications to the District Collector cannot be overstated. It is crucial to align the intended use of the land with its designated purpose and be aware of state government programs that may offer affordable options for house building.

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A Guide to Calculating Annual Value of a Property

Investment Advice

By

Shivam Tomer

-

December 20, 2023

The concept of calculating the annual value of a property may seem like a complex mathematical puzzle, but in reality, it is a crucial step in understanding the financial landscape of your real estate asset. Whether you’re a homeowner, a property investor, or someone looking to assess the tax implications, grasping the nuances of annual property valuation is essential.

In this comprehensive guide, we’ll delve into the intricacies of how to calculate the annual value of your property, demystifying the process and empowering you with the knowledge to make informed decisions.

Understanding Annual Value

The annual value of a property is the estimated annual rent that a property could fetch if it were rented out, minus any municipal taxes borne by the landlord. In simple terms, it is the notional rental income that the property is expected to generate in a year.

The formula for calculating the annual value is as follows:

Annual Value = Fair Rental Value — (Municipal Taxes borne by the landlord) or (Actual Municipal Taxes Paid by the Owner)

Let’s break down each component of this formula to gain a clearer understanding.

Fair Rental Value

The fair rental value is the amount that a property could command in the open market. It is influenced by factors such as the property’s location, size, amenities, and overall market demand. To arrive at this figure, you can research similar properties in your locality or consult with real estate professionals for an estimate.

Municipal Taxes

Municipal taxes, also known as property taxes, are levied by local authorities on the property owner. These taxes contribute to the maintenance of civic amenities and services in the area. It’s important to distinguish between the municipal taxes borne by the landlord and the actual municipal taxes paid by the owner. The former is subtracted from the fair rental value to arrive at the annual value.

Calculating Annual Value: Step by Step

Now that we’ve laid the groundwork, let’s walk through a step-by-step process to calculate the annual value of your property.

Determine the Fair Rental Value

Begin by researching the prevailing rental rates in your locality. You can consult real estate websites, property managers, or local real estate agents to get an estimate of the fair rental value. Take into account factors such as property size, amenities, and any unique features that could influence rental rates.

Assess Municipal Taxes Borne by the Landlord

Identify the municipal taxes that are borne by the landlord. These may include property taxes, water taxes, and other local assessments. This information is crucial for the accuracy of your calculation.

Subtract Municipal Taxes from Fair Rental Value

Apply the formula:

Annual Value= Fair Rental Value — Municipal Taxes borne by the landlord

By subtracting the municipal taxes borne by the landlord from the fair rental value, you obtain the annual value of your property.

Verify the Calculation

Ensure that your calculation aligns with any local regulations or guidelines pertaining to property taxation. Some jurisdictions may have specific rules regarding the treatment of certain expenses or deductions.

Factors Influencing Annual Value

Several factors can influence the annual value of a property, and being aware of these variables can help you make a more accurate assessment.

Location

The geographical location of your property plays a significant role in determining its fair rental value. Properties in prime locations or areas with high demand for rentals typically command higher rental rates.

Property Size and Amenities

The size of your property and the amenities it offers, such as parking spaces, proximity to public transportation, or access to recreational areas, can impact its fair rental value.

Market Conditions

Fluctuations in the real estate market can influence the fair rental value. Economic conditions, supply and demand dynamics, and overall market trends can contribute to changes in rental rates.

Property Condition

The overall condition of your property, including its maintenance and upkeep, can affect its fair rental value. Well-maintained properties often attract higher rental rates.

Conclusion

Calculating the annual value of your property is a valuable skill that can aid in financial planning, tax assessment, and overall property management. By understanding the components of this calculation and the factors that influence property valuation, you empower yourself to make informed decisions about your real estate assets.

Remember, accurate and up-to-date information is crucial for a precise calculation. Consult with real estate professionals, stay informed about local market trends, and ensure compliance with any relevant regulations. With these tools in hand, you can confidently navigate the world of annual property valuation and make decisions that align with your financial goals.

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She Shed Chronicles: A Symphony of Creativity and Design Marvels

Decor

By

Shivam Tomer

-

December 15, 2023

Unlocking the boundless potential of your she shed involves transcending the ordinary and venturing into a realm of unparalleled creativity, inspiration, and innovation. In the age where the ‘man cave’ once held sway, the emergence of the she shed has not just arrived; it has triumphed, ushering in a long overdue era.

Picture this: your she shed, a sanctuary tailored to your desires, offering a canvas for self-expression and an escape from the mundane. The possibilities are as diverse as the dreams that fuel them. Whether you crave a haven for your hobbies, a retreat for relaxation, or an oasis from the routine of daily life, she shed ideas are poised to be the solution to every aspiration.

Elevate with Elegance

To soften the rugged charm of your shed, embark on a journey of transformation with a fresh and feminine color palette. Let the walls whisper with hues that mirror your personality, setting the stage for an enchanting garden retreat. The canvas is ready; now let our she shed ideas dance upon it, igniting the imagination that resides within.

Timeless Beauty in Vintage Vibes

Step into your shabby chic haven, where pastel Lloyd Loom chairs beckon and upcycled treasures tell tales of bygone eras. Lace curtains sway gracefully, adding a touch of granny-chic sophistication. As sunlight filters through, a string of bunting and freshly picked flowers complete this vintage-inspired masterpiece.

A Nook for Nurturing Passions

Trade the chaos of indoor life for a tranquil ‘work-from-home’ haven amidst the greenery. Picture a compact desk bathed in natural light, accompanied by a versatile trolley for your essentials. Unplug from the digital world or revel in the convenience of a gadget-free zone; the choice is yours.

Illuminating Magic

Light up your she shed with strings of fairy lights, creating a magical haven that transcends the ordinary. Festoon lights define your outdoor space, while hurricane lanterns filled with real or LED candles cast a warm glow, conjuring an atmosphere perfect for endless summer evenings.

Seaside Serenity

Transport yourself to the coast, regardless of your proximity to the sea. Embrace a traditional palette of blues and whites, adorned with nautical stripes on plush furnishings. Paint your walls off-white and the floor in oceanic blue, completing the seaside escape with rows of bunting, hurricane lanterns, and driftwood accents.

Pallet Perfection

Transform a wooden crate into a rustic masterpiece by fashioning a pallet shelf to display your treasures. Upcycled and practical, this DIY creation adds a touch of charm to your creative haven, showcasing seed tins, string reels, and plant labels.

Crafting Dreams

For the artistic soul, let your she shed metamorphose into a dedicated craft space. A trestle table, adorned with a wipeable cloth, awaits your creative endeavors. Illuminate your projects with a task lamp, and turn a cork board into a canvas for inspiration, making your crafting dreams tangible.

Cozy Corners

Indulge in the lap of luxury with a squishy sofa or a sumptuous armchair and footstool combo. Spruce up your comfort haven with a knitted throw, ready to surround you in warmth as you lose yourself in your she shed retreat.

Year-Round Wonderland

Reimagine your she shed as a sanctuary for all seasons. With proper insulation, your garden room becomes a haven, mirroring the comfort of indoor living regardless of the weather. Consider heating and facilities to extend the functionality and charm of your haven.

Decking Drama

Extend your space beyond the walls by laying decking that beckons you outdoors. The front deck becomes a patio, inviting you to relish the open air. Nestle into a fashionable egg chair, gently swaying with the rhythm of a best-selling novel, as your she shed adventure continues.

Embrace the creative symphony that your she shed, a testament to your individuality and a celebration of boundless imagination. Step into a world where the ordinary transforms into the extraordinary, and let your she shed be the canvas for the masterpiece that is your life.

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Leasehold Vs Freehold: Property Selling

Investment Advice

By

Shivam Tomer

-

December 14, 2023

The sale-purchase of a property often involve additional steps that both buyers and sellers are surprised to learn about. The buyer must be informed of the additional transfer charges when purchasing a property from the seller or their broker.

It is important to determine whether your property is leasehold or freehold before beginning the process of transferring ownership. This is because the sale process varies depending on the type of property. To begin with, let us review the differences between leasehold and freehold properties.

Freehold Property

As implied by its name, a freehold property is not possessed by anyone other than its owner. This means that the owner is fully in control of the property and can use it for any purpose (renovation, transfer, or sale), as long as they follow local regulations. Additionally, if the owner wishes to sell, no permission from the authorities is needed, and the selling procedure is fairly simple. Since the title to a freehold property is perpetual, buyers tend to favor freehold properties over leasehold ones.

How do you sell your freehold property?

Let us say you wish to sell your property (i.e., transfer ownership). In that case, you can proceed with the straightforward process of signing a sale agreement with the buyer and then completing and registering a sale deed at the relevant Sub-Registrar of Assurances office. You can read more about this procedure by clicking here.

Leasehold property

As the name suggests, in this instance, the government agencies in Noida, Greater Noida, and Navi Mumbai offer leasehold land, while those in Gurgaon, Ghaziabad, Bangalore, and Delhi offer freehold properties. Under this arrangement, the land is leased to a third party for a term that can vary from thirty to ninety-nine years and, in certain cases, up to 999 years.

Apartment buildings constructed on leasehold land face an uncertain future because they are dependent on the rent charges collected by the relevant housing society to extend the lease. Additionally, when the property approaches the end of its lease, buyers will have a harder time obtaining bank loans.

Selling a Leasehold property

Let us say you are the owner of a leasehold apartment in a housing society, that you have found a buyer, that you have negotiated a price, and that you are planning to proceed with the sale. Step 1: Drafting of Sale Agreement and Application for “No Dues and No Objection Certificate”

The buyer’s lawyer will draft a “Sale Agreement” or “Agreement to Sell” that will include all terms and conditions of the sale; after you provide your confirmation, both parties can go to the relevant office of the Sub-registrar of Assurances and get the sale agreement registered (for more information on this, click here). The buyer, unless otherwise agreed, will pay the necessary stamp duty and registration fees.

Housing societies charge a sum of money, which can vary from Rs 10,000 to Rs 25,000, depending on the type of housing project (affordable, mid-income, or affluent); the buyer typically pays these charges. They will require copies of identification documents and signatures of both parties on the application form. You and the buyer will also have to apply to your housing society for a “No Dues and No Objection Certificate.” Make sure that you have no outstanding dues with the society regarding maintenance or any other charges.

Step 2: Application for “Memorandum of Transfer” Following receipt of the “No Dues and No Objection Certificate,” you must apply to the relevant government body—which is the lessor and owns the land—to obtain the “Memorandum of Transfer,” which is a formal document granting you, the owner of the leasehold property, the ability to transfer your ownership rights to the buyer.

A copy of the No Dues and No Objection Certificate from the relevant housing society must be attached to the application form, which can be obtained from the authority’s office or, if available, from its official website. Personal identification documents for both the buyer and the seller must also be attached.

The buyer is responsible for covering the costs associated with obtaining the Memorandum of Transfer, which vary by area and can range from Rs 2,000 to Rs 9,000 per sq m. The total cost is determined by multiplying the transfer charge per sq m by the size (in sq m) of the property in question. The relevant office of the sub-registrar of assurances can provide these rates. In plotted developments, the transfer charges are determined by the width of the road on which the property is located. Additionally, plots facing the green belts as designed by the master plan are more expensive in terms of transfer charges.

Step 3: Verification at the concerned governmental authority’s office Following the application process, you and the seller may be required to appear in person at the designated governmental authority office on a specified date. The concerned officials will ask you similar questions and confirm that you wish to transfer the property to the buyer before providing you with the “Memorandum of Transfer” document, which should arrive in one to two weeks.

Step 4: Execution and registration of sub-lease deed The buyer’s attorney will prepare and print the sale deed following the buyer’s payment of the applicable stamp duty and the entire purchase price for your property. Following your signature, the concerned sub-registrar at the Sub-registrar of Assurances office will review all paperwork, sign the sub-lease deed, and charge the buyer the relevant registration fees.

The original registered sublease deed will be sent by the sub-registrar’s office to the buyer after a period of one to two weeks, and you, the seller, should take a photocopy of each page for your records.

Remember that this process and the kinds of documents needed might differ depending on the state and city where your property is situated. For example, if you, the property owner, bought the property originally under an irrevocable Power of Attorney (POA) rather than a registered lease deed, this POA will be needed when selling the property. For more information on how to proceed with selling a leasehold property, it is best to speak with a local real estate broker and a property transaction lawyer.

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Understanding the Repo Rate

Finance

By

Shivam Tomer

-

December 12, 2023

The repo rate, which is determined by the Reserve Bank of India (RBI) as the Central Bank’s lending rate to nationalized and private banks in times of funding scarcity, is subject to fluctuate based on market conditions and has a big impact on consumer purchasing power. However, what effect does the repo rate have on a homebuyer’s home loan installment? Let us find out!

In all countries, the government in charge controls the amount of money in circulation. In India, this authority is vested in the Reserve Bank of India (RBI), which has the power to determine the lending rate (cost of credit)—that is, the rate at which money is endorsed to a borrower. The RBI, as the nation’s central bank, does not lend money to the general public; rather, it serves as a financing institution that allows the country’s commercial banks to carry out their necessary functions. The rate at which the RBI lends money to the banks is referred to as the repo rate.

How does RBI control the lending mechanism through Repo Rate?

If there is a lack of funds, commercial banks can borrow from the RBI to make sure that the funds are easily accessible to end users. In this case, the RBI lends money to the commercial bank based on the repo rate, which is currently 6.50 percent in India. The rate is subject to market fluctuations and has impact on the buyer’s purchasing power.

For example, if the repo rate is higher, the commercial banks borrow less from the RBI, which lowers the amount of money available for consumption. If the rate falls, however, commercial bank borrowings increase, ensuring better money circulation in the economy and increased spending capacity for buyers.

Impact of Repo Rate on Real Estate Market

Every sector of the economy is affected by changes in the repo rate, and the real estate industry is no exception. Since buying a home is an expensive endeavor, buyers may be put off by high lending rates as the total cost of the property increases.

The repo rate was raised six times in a short period of time in Financial Year (FY) 2022–23, with a total increase of 250 basis points. It was hiked for the first time in May 2022, after which it saw additional revisions in June, August, September, and December 2022 and February 8, 2023. The government implemented measures to control rising prices and maintain a healthy flow of funds. However, in the last four Monetary Policy Committee (MPC) meetings, which concluded on April 6, June 8, August 10, October 6, and December 8 for the current FY 2023–24, the RBI refrained from raising the repo rate further, and it is currently at 6.50 percent.

A higher monetary supply means more loans will be approved, which will put money back into the hands of buyers and strengthen their buying decisions. The RBI’s current decision can be seen as a step towards improved cash flow in the economy. This increases the buying capacity of consumers and encourages them to invest any extra money parked with them. This is in contrast to a high repo rate, which hurts the end-consumer’s purchasing power.

Bottom Line

In the dynamic interplay of economic forces, the repo rate continues to shape the landscape, leaving its imprint on the choices and capacities of consumers. As we navigate these financial currents, it remains crucial to stay attuned to the ever-evolving dance of numbers and policies that govern our economic reality.

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Home Personalization With DIY Wall Hanging

Decor

By

Shivam Tomer

-

December 5, 2023

In this article, we delve into the realm of DIY wall-hanging ideas that not only add a distinctive touch to your living space but also let you unleash your artistic flair without breaking the bank. Decorating your walls need not be an expensive endeavor when you can repurpose everyday items into stunning pieces of art.

In the upcoming sections, we’ve curated a collection of unique and easy-to-follow DIY wall-hanging ideas that cater to various tastes and preferences. From transforming old shoe boxes into functional shelves to crafting boho macrame masterpieces, there’s something for everyone eager to infuse their homes with a personalized touch.

DIY Wall Hanging Ideas

Cardboard Shelf & Clocks

You can turn old shoe boxes into wall shelves and make decorative wall clocks from leftover plywood. This is a great way to spend quality time with your family and get your creative juices flowing.

Wicker Baskets Wall Hanging

If you have old, frayed wicker baskets lying around, you can paint them in interesting colors and stick them on your wall with some command strips. This is a great way to decorate your rental home as well.

Handmade Boho Macrame

Macrame wall hangings are visually appealing, but the colored ones can be expensive. You can take any white macrame wall hanging of your choice and paint it with fabric colors to create a statement piece for your home.

Easy Paper DIY Hanging For Kids’ Room

This easy DIY paper wall hanging is a great way to decorate your kids’ room. All you need is a string, glue, and some craft papers. Cut the craft papers in the shape of letters and glue them on the string to create an awesome message.

Yarn Wall Hanging

You can create a beautiful yarn wall hanging by wrapping yarn around a wooden dowel and adding some decorative elements like feathers or beads.

Seashell Wall Hanging

You can use seashells to create a beautiful wall hanging. All you need is a piece of driftwood, some twine, and a hot glue gun. Glue the seashells onto the driftwood and hang it on your wall.

Cardboard patterns message board

One idea is to create a message board using cardboard patterns that you can decorate with hand-painted designs and funky messages. Another idea is to make a paper wall hanging using a toran design that you can hang at the entrance of a room or on your balcony.

Fan art

If you’re a fan of art, you can create a paper wall decor using fan art that covers the entire wall or any part of your house. For a romantic touch, you can make paper hearts wall hanging by cutting out heart shapes from red and pink papers and hanging them on strings attached to the walls.

Paper cut-outs

If you love inspirational quotes and words of wisdom, you can decorate your wall with paper cut-outs that say something encouraging or remind you of how fortunate you are to have the people in your life that you do.

Snapshot wall hanging

Another idea is to create a gorgeous and iconic wall art with family photographs by painting a string of twine or cord around your room’s walls and attaching the bright colors and photographs onto blank spaces within your created woven-wall pattern.

Moon phases made of paper

Cut out the moon’s phases from thick paper and hang them in the right order on a string. This way, you can add an attractive tassel to make it more pretty and hang it on the wall facing the sitting area to have some extra lighting or scenery.

The world of interior decor is endless, and any small or big thing can become an art piece. We hope these decor ideas inspire you to create your own unique pieces.

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Apply for a loan without CIBIL score– All you need to know

Finance

By

Shivam Tomer

-

November 17, 2023

Are you considering a home renovation but constrained by your budget? If yes, then a personal loan can help you achieve your goals. However, obtaining a loan from a bank is not as easy as it seems. To secure a personal or home loan, you need to have a good CIBIL score rating. But what if your credit score is incredibly low? Can you still get a personal or home loan without undergoing CIBIL score checks? Let’s explore this together!

In recent times, banks have become more stringent when it comes to home loans or personal loans. Additionally, most banks require a CIBIL score of 700 and above for a home loan with a desirable interest rate. Unfortunately, most private banks set a minimum bar of 650, and scores below that are often not entertained. However, it is still possible to obtain a home or personal loan without undergoing CIBIL score checks if you follow the right approach. But before we dive into the approach, let’s first understand what CIBIL score rating is and why it’s essential.

Meaning & importance CIBIL score

Understanding what a CIBIL score is and how it works can be crucial in managing your finances and achieving your goals. Essentially, a CIBIL score is a three-digit numerical representation of an individual’s creditworthiness, which is determined based on their credit history. This includes factors such as credit card payments, loan repayments, and other financial transactions. The score ranges from 300 to 900, with a higher score indicating a better credit profile.

Having a good CIBIL score can be immensely beneficial in various ways. Firstly, when you apply for a loan or credit card, lenders consider your CIBIL score as a key factor in their evaluation process. A higher score increases your chances of loan approval and favorable interest rates. Secondly, a good CIBIL score reflects responsible financial behavior, which can enhance your reputation in the eyes of financial institutions.

It’s important to note that a CIBIL score can impact other aspects of your financial life as well. For instance, it can influence your ability to secure rental accommodations, obtain credit cards, and even affect job prospects in certain industries. This underscores the importance of maintaining a good CIBIL score throughout your financial journey.

But what happens if you have a low CIBIL score? Can you still manage to get a home or personal loan with CIBIL score checks? The answer is yes – there are still options available.

Exploring alternatives for loan without CIBIL score

If you are someone who doesn’t have a CIBIL score, it may seem like getting a loan is impossible. However, there are several options available that can help you secure a loan without a credit score. Here are some loan options that you can consider:

Collateral-based Loans: Secured loans are backed by a valuable asset as collateral, such as a property or gold. Since the lender has a guarantee of repayment, they are more likely to approve these loans.

Joint loan application: You can improve your chances of loan approval by applying with a co-applicant who has a good credit score. This can increase your chances of loan approval as the lender will take into account the creditworthiness of the co-applicant.

Peer-to-peer lending: Peer-to-peer lending platforms enable direct connection between borrowers and lenders. They are more flexible in lending criteria and consider factors beyond just the CIBIL score.

Microfinance institutions: These organizations offer small loans to people who can’t use traditional banks. They consider factors like how much money the person makes and if they can pay back the loan.

Credit unions: Credit unions are basically financial cooperatives owned by their members. They provide a variety of financial services, including loans, and often have more relaxed lending requirements when compared to traditional banks..

It is essential to note that while these options may be available, the interest rates and terms may vary. Therefore, it is advisable to compare different lenders and carefully consider the terms and conditions before availing a loan.

How to cope with emergencies?

To help you better understand the situation, let’s consider an example. One year ago, Prashant had to move back to his family property, which had been left unattended for decades. Due to budget constraints, he could only afford home improvements instead of buying a new property. With a CIBIL score of 500, he knew that getting a traditional home loan was not possible. That’s when a financial expert suggested he apply for an emergency loan. But what is an emergency loan?

An emergency loan is a type of personal loan that is instantly sanctioned to help you out of emergency situations. In India, many premium banks like HDFC or IDFC offer emergency loans without checking your CIBIL score. However, you’ll still need to provide proof of income and a timeline for how you’ll use the loan.

Tips to avail credit-free options

If you’re looking for a loan without a CIBIL score check, here are a few options to consider:

Explore loan options from NBFCs: Non-Banking Financial Companies (NBFCs) are more flexible in their lending criteria than traditional banks. They may consider other factors, such as your employment history and income stability, to determine your creditworthiness.

Research lenders who offer loans without a CIBIL score: There are several lenders in the market who provide personal loans to individuals without a CIBIL score. Research and identify these lenders to explore your options.

Provide alternative documents to prove creditworthiness: Since you don’t have a CIBIL score, you’ll need to provide alternative documents to prove your creditworthiness. This can include bank statements, income tax returns, salary slips, and other relevant financial documents.

Offer collateral or a guarantor: Some lenders may require you to offer collateral or have a guarantor to secure the loan. This provides them with assurance in case of default. Make sure to have the necessary collateral or a reliable guarantor.

Apply for a small loan amount: When applying for a personal loan without a CIBIL score, starting with a small loan is advisable. This increases your chances of approval and allows you to build a positive credit history.

Bottom line

A low credit score can make it difficult to secure a home or personal loan for property improvement. However, if you don’t have a good CIBIL rating, you can try alternative means to apply for a loan without a CIBIL check. Keep in mind, though, that these loans usually come with higher interest rates and limited customization options. It’s best to consult a financial professional for guidance on this matter.

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North Bengaluru commands higher rental yield than eastern IT corridor, prime areas

News

By

Shivam Tomer

-

November 14, 2023

In terms of rental growth, Sarjapur Road and Whitefield in the east have an edge over North Bengaluru because of their proximity to the major IT parks.

North Bengaluru has surpassed the eastern IT corridor of Whitefield and prime areas in terms of rental yield, reveals data from ANAROCK. In the third quarter of this calendar year, North Bengaluru exhibited a rental yield of 4.48 percent, up from 3.38 percent four years ago. Rental yield represents the income generated by a rented property relative to its purchase value.

Ashish Sharma, City Head, Bengaluru, ANAROCK Group, highlighted that while Whitefield currently has a rental yield of 4.41 percent, up from 3.7 percent in 2019, Thannisandra Main Road in the north commands an even higher rental. However, prime areas like Indiranagar and Koramangala, which attract mixed demand from IT and other sectors, show lower rental yields at 3.4 percent and 3.37 percent, respectively.

Sharma explained the drop in rental yield in prime areas by noting that capital values in these locations are significantly higher than in prominent IT hubs, while the difference in rentals is not as substantial. Local brokers attribute the higher rental yield in North Bengaluru to the area’s relatively new and booming real estate, coupled with infrastructural challenges such as waterlogging and traffic snarls impacting real estate prices in some parts of the eastern IT corridor.

Despite North Bengaluru leading in rental yield, rents are experiencing a faster pace of growth in the east. ANAROCK’s findings indicate a 31 percent and 27 percent growth in rentals for a standard 1,000 square foot two-bedroom apartment in Whitefield and Sarjapur Road, respectively, over the past nine months of 2023. Ashish Sharma noted that Thannisandra Main Road witnessed a 16 percent rental value growth during the same period.

Sarjapur Road and Whitefield hold an advantage over North Bengaluru in terms of rental growth due to their strategic proximity to the city’s major IT parks, including the IT-belt along the Outer Ring Road, Whitefield itself, and Electronic City further south. The high demand for living in and around these IT areas contributes to higher rental values, reflecting a demand-supply mismatch in many societies. Rent for a two-bedroom flat near Whitefield’s eastern IT corridor can range from Rs 40,000-50,000 per month in a prime location, while a three-bedroom apartment could command Rs 60,000-70,000 per month. Rental appreciation has reached 30-40 percent in most projects in the east, with some gated communities experiencing spikes of up to 50 percent.

Shivam Tomer

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In terms of rental growth, Sarjapur Road and Whitefield in the east have an edge over North Bengaluru because of their proximity to the major IT parks.

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