Bank vs HFC: Which Is a Better Option for a Home Loan?

Of the many milestones Indians look at achieving in their lives, buying a home is definitely one of them. A great amount of research goes into deciding whether or not to buy a home or construct one according to your specifications. If you decide to go with the former, there is more research involved. Like which property developer to consider, the carpet area, and the amenities to name a few.

Bank vs hfc

Once you zero in on a home, the next bit (and the most important) is how you plan to finance this purchase. Now, you are going to probably read this statement and think that you plan to take a home loan, of course. And that’s the course that almost everyone takes.

But the question to ask here is do you plan to take a home loan from a bank or a housing finance company (HFC)?

There are advantages and disadvantages to both, of course. So, here’s all you need to know to help you make the right decision.

What is a housing finance company?
Let’s start by understanding what an HFC is. An HFC is a non-banking finance company which, like traditional banks, offers home loans. Unlike a bank, though, HFCs only provide home loans.
Now, that you know what an HFC is, here are a few differences between banks and HFCs:

Bank vs Hfc


As you can see, both banks and HFCs have their advantages and disadvantages. So, which is a better option? Well, it all depends on what your needs are.

If you are looking for quick disbursal of funds
Sometimes there may be a situation wherein you find the perfect home but the only thing stopping you is getting the funds. So, you apply to a bank and an HFC for a home loan. You will realise, that since HFCs deal only with home loans and loans related to property, they will process your application faster than banks. You can opt for a bank home loan if you have enough and more time to gather funds. If not, opt for an HFC.

Verdict: HFC

If you are looking for leniency in documentation and assessment of credit score
As mentioned earlier, HFCs tend to have a more lenient documentation process when compared to banks. And while banks take your credit score very seriously, for HFCs, your credit score is important but is not a deciding factor.
So, if you have a credit score that may be low or don’t want to spend time doing paperwork, consider an HFC for your home loan.

Verdict: HFC

If you are looking for long-term savings
In general, repayment terms for a home loan taken from a bank is more favourable than those of a home loan taken from an HFC. The interest rate is relatively lower. While at face value the difference in interest rate may be 0.5% or lower which you may not think is much, the actual amount you end up saving is quite a bit.

For instance, if a bank offers you a loan of Rs.20 lakh for a 10-year home loan at 9% p.a., the EMI you will be paying is Rs.25,335. If you take a loan from an HFC for the same amount and tenure at an interest rate of 9.3% p.a., the EMI you end up paying is Rs.25,661.

This difference of Rs.326 doesn’t seem to be too much. However, over the course of 10 years, this amount adds up to Rs.39,120. Which is quite a bit.

So, if long-term savings is something you are looking for, taking a home loan from a bank is your best bet.

Verdict: Bank

If you have sufficient funds already in place
When it comes to buying a home, you probably already know that there are expenses that will not be covered by your home loan. This includes the down payment you make on your property. In fact, banks and HFCs, both, require you to make a down payment to be eligible for a home loan.
This being said, banks only provide you with a loan which is up to 90% of the value of the property in most cases. So, other costs involved such as stamp duty and registration are not covered by a home loan taken from a bank. This isn’t a problem if you have enough and more funds in place for these expenses. Which you ideally would especially if you are considering buying a home.
In case you don’t, though, you could always consider taking a home loan from an HFC. This is because HFCs tend to not only provide you with a loan that includes a percentage of the property value, but it also includes registration and stamp duty.

Verdict: If you have sufficient funds go with a bank, if not go with an HFC.

Documents required to apply for a home loan with banks and HFCs
While HFCs require you to submit fewer documents, there are a few documents that both banks and HFCs will require you to submit. These are:
Identity proof documents: Aadhar card, PAN card, and passport
Address proof documents: Telephone bill or electricity bill
Income proof documents: Latest Form 16 and income tax returns, last 3 months’ salary slips, and bank account statements for the last 6 months.
Property-related documents: These documents are for new homes and include the buyer agreement, allotment letter, and receipts of payments made to the builder or developer.

So, which do you choose?
To be honest, there is no one definitive answer to this question. Which one you decide on is based on your individual needs when it comes to buying a home. However, knowing the pros and cons of both these home loan options will help you make the right decision.

Remember, whether you decide to take a home loan from a bank or whether you decide to take one from an HFC, the most important thing you need to do is research. Once you zero in on one of the options, shop around and look for the bank or HFC (as the case may be) which offers you the best interest rates, tenure, and whose terms and conditions are favourable to you. It may take a little time, but this is research you definitely will not regret.



Author Bio:

Nikil Swamy with decades of experience in financial sector. Love to create a unique voice with great writing which helps people in making financial decisions. As a reader, love to share my thoughts and experience that might be useful to others.

All You Need To Know About Green Tea(Plus Infographic)

Green tea has for quite some time been accepted to have various health benefits. It's been customarily used to advance assimilation and treat gas, as an astringent, a diuretic and a stimulant, and even to control glucose, improve heart wellbeing and boost mental processes.

To comprehend the health benefits of green tea, we first need to take a gander at cancer prevention agents. Cancer prevention agents are atoms that hinder oxidation, which is a chemical reaction that can create free radicals, particles with unpaired electrons that can respond with macromolecules in the body's cells to deliver destructive changes. Cell harm from free radicals has been connected to medical issues, for example, malignancy and coronary illness.

Udyantea has demonstrated the benefits of green tea decidedly.
In light of the growing number of studies that investigate health benefits of green tea, this article depicting clear valuable influences you can get with regular drinking.

Longevity

Green tea may shield against death from all causes, particularly cardiovascular disease. The discoveries from various Japanese examinations may clarify to a limited extent the motivation behind why the general population in Japan live longer than individuals in some other nation.

Memory and Learning

One of the essential health benefits of customary green tea drinking is improved memory and learning capacity.

What research says:

• High green tea drinking maintains cognitive function
• Green tea utilization may upgrade learning and memory capacity
• Green tea upgrades functional mind availability
• EGCG upgrades hippocampal neurogenesis in grown-ups.
Studies have discovered that EGCG meddles with the emulsification, assimilation and micellar solubilisation of lipids, diminishing the ingestion of dietary fat and cholesterol by the digestive organs.

Can Green Tea Help Me Lose Weight?

Green tea's conceivable weight reduction properties are accepted to be attached with EGCG's impact on lipid assimilation, just as the tea's caffeine content (however the impact of caffeine on weight reduction is likewise debated).



A 2009 Japanese examination found a decrease in waist circumference among patients with sort 2 diabetes following 12 weeks of expending catechin-rich beverages. Two other studies separately discovered that utilization of a catechin-rich beverage alongside exercise brought about diminished body weight contrasted with control bunches drinking a less catechin-rich refreshment. One of these two examinations additionally found a decrease in abdomen estimate, while the other did not, however it found a decrease in stomach fat region. In any case, this was accomplished utilizing a beverage injected with raised dimensions of green tea catechins: While an average 250 some green tea contains 50 to 100 milligrams of catechins (however others guarantee 120 to 320 mg for every container), these two examinations gave admissions of 690 or 625 mg of catechins every day, individually.
Blood Sugar & Diabetes
One of green tea's customary uses is blood sugar levels, making it characteristic to inquiry its impact against diabetes. To be sure, a 2013 meta-investigation found that green tea utilization brought down fasting glucose focuses in people by 0.09 millimoles per liter (mmol/L) and fasting insulin fixations by 1.16. μIU/mL.

Moreover, a 2006 populace consider in Japan found that individuals who drank no less than some green tea (or some espresso) every day were 33 percent more averse to create type 2 diabetes than the individuals who drank one container or less of green tea (or espresso) every week. So, higher in general caffeine consumption when all is said in done was related with bringing down diabetes chance, however no particular affiliation was found with dark or oolong tea.

15 Countries With The Cheapest Mobile Data Plans In The World

Mobile internet is almost indispensable in this age as our addiction to our phones is on the rise on a daily basis.

To enjoy certain features on our phone, we need mobile data which in turn costs money.

Data costs around the world varies but in this article, we present to you the top 15 countries with the cheapest costs for one Gigabyte of data according to the research done by www.cable.co.uk

Let's go!

Mobile data

1. India


The world's second most populous country in the world tops this list with the average cost of mobile internet to be $0.26.

While the cheapest price you're likely to find is $0.02, the most expensive price is $1.40

2. Kyrgyzstan


In Kyrgyzstan, the average cost of 1GB of mobile data is $0.27.

The cheapest price is $0.08 while the most expensive plan is $0.48.


3. Kazakhstan


In Kazakhstan, 1GB costs $0.49 on the average.

The cheapest price is $0.28 and the most expensive price to be $0.79.


4. Ukraine


Ukraine ranks fourth on the list of the list of countries with the cheapest mobile data with the average price to be $0.51

The cheapest and most expensive price here are $0.21 and $1.38 respectively.


5. Rwanda


Rwanda is the African country with the cheapest data cost. On the average, data costs $0.56.

The cheapest and most expensive price in Rwanda are $0.04 and $2.78 respectively.


6. Sudan


Sudan is the second African country with the cheapest mobile data cost with an average of $0.68.

The cheapest price you're likely to find is $0.29 and the most expensive price is $1.63.


7. Sri Lanka


The average data cost is $0.78.

The cheapest and most expensive price are $0.22 and $2 .09 respectively.


8. Mongolia


Average cost: $0.82

The cheapest and most expensive price are $0.41 and $2.26 respectively.


9. Myanmar


Myanmar ranks 9th in the world with the average price as $0.87.

The cheapest and most expensive price are $0.65 and $1.48 respectively.


10. Congo (Democratic Republic of Congo)


The average cost is $0.88.

Cheapest price: $0.05

Most expensive price: $5.05


11. Israel


The average cost is $0.90

Cheapest price: $0.11

Most expensive price: $6.89


12. Russia


On the average, 1 GB costs about $0.91.

The cheapest price for 1GB of mobile data is about $0.14.

The most expensive price is $2.19.


13. Bangladesh


Averagely 1GB costs $0.99.

The cheapest and most expensive price are $0.18 $3.81 respectively.


14. Finland


Mobile data in Finland is averagely about $1.16 per gigabyte

The cheapest price you're likely to find is $0.30 and the most expensive price is $2.17.


15. Malaysia


Averagely, one GB of mobile data in Finland costs $1.18


The cheapest price is $0.24 while the most expensive price is about $3.27

Below is an Infographic on the average cost of 1 GB of mobile data in selected countries from Statista.


Cost of mobile data around the world

What Damage Can Termites Do If You Don’t Spot Them On Time

Termites are insects that look like ants and appear quite harmless,  yet  have all the capabilities that can inflict serious structural damage to your house.
Termites never stop eating. They feed rapidly on wood all 24 hours, therefore, making destruction at a faster pace.


Termites

Termites are found in 45 different kinds of species alone in the U.S out of 2750 known species and each of them falls into three main termite types, which are

  1. Subterranean
  2. Drywood
  3. Dampwood
The first type of termite, Subterranean belongs to the family Rhinotermitidae and they live in the soil and builds the largest nests.
The second type of termite, Drywood belongs to the family Kalotermitidae and they live wood, such as Timbers in Houses, Hardwood Floors & Dead Trees.
The third type of termite, Dampwood belong to the family Kalotermitidae and Hodotermitidae and they live in the wood which consists of high moisture content. Hence, they don’t need contact with soil and are mostly the ones which attack wood in our homes.
Most people hate termites because of their reputation and most probably the difficulty involved in getting rid of termites. But the presence of termites on this planet is from a very long time and they are essential to many habitats and ecosystem. It’s not surprising to see this pest for the first time. Majority of people might have heard or seen about the termite infestations.
The better you understand about these little pesky pests, the better you can safeguard your home.
Unlike all other pests, termites live inside the wall and structure of your home and cause all the damage from the inside out. Termites can sneak into your house through a crack or crevices as thin as the edge of the credit card and that makes it very difficult to avoid them from getting into your home.
Most of the termite's infestations occur at the support structure inside the building and therefore they aren’t easy to spot them.
Even the small number of termites can degrade the value of your house. Most of the buyers will act to play safe and simply avoid purchasing the house which is previously infested by termites.
There are a number of ways in which they can damage your home and we’re going to list some of them below for your better understanding.
  • Furniture and Other Wood Items:

    They are just around a centimetre in length yet can bite a big chunk of food. They can get into furniture once they enter your home as they feed on wood. It is most likely if you have olden doors, windows and furniture in your home. They will eat up all the antique pieces and the wood around the doors and windows which will make them fragile and jam eventually collapse. This can be dangerous for people living around the house. It poses many such risks if you don’t spot termites on time.

  • Foundation & Structural Damage:
This type of damage is done usually by subterranean termites. The damage to foundation and structure by termites are likely to possible when the colonies of termites located around the perimeter of your home or neighbours are not eliminated or treated.
Termites cause significant damage to your wood flooring, trims and subflooring. It can be detected mostly when you see uneven flooring or swollen flooring around the perimeter of your home. The other way they can be detected is the appearance of tunnels made by such termites on the side of your concrete foundation. This type of termites is usually treated on the ground and outside of the house.
  • Roof Space and Walls Damage:

    Formosan Subterranean Termites is an invasive species of termites. They are transported worldwide from their native regions, China and Japan. In the 20th century, they were established in Hawaii and other continental United States.

    Formosan Termites can swarm in your house and seek shelters in walls and roof spaces. They are quick working termites and do a lot of damage within a short period of time if you don’t notice them on time. Apart from this, they can also seek shelters in the big trees near to your house and makes their limbs fragile or weak and they eventually fall anywhere on your house and that is really dangerous. You can notice such termites by sound. If you hear creaking sounds from your walls then it must be termites eating from the inside.
Termites are known for eating wood-based materials. In fact, they also infest cellulose-based materials like Carpets, photo frames and books.
  • Carpet Infestation:

    The termites reproduce in early summer and in late springs they often give birth to new colonies. These multiply at a quick rate and find spaces under the carpet or corners of carpet sticking to the walls. They normally don’t do much damage to carpets other than some marks but it is an ideal place for them to grow and later spread all over to your house.

Can Termites Damage Be Fixed?
Yes, it can be fixed. But it can be a big dent in pockets too. Therefore, spotting them on time and preventing them is always better than treating them.
The two ways in which you can fix the damages are:
  1. Replacing all damaged wooden materials with a new one.
  2. Adding Wood Support to the structure of damaged wood.
The prevention of termites after finding their activity is the solution for termites infestation. The main aim lies to spot them on time.
If the infestation is getting out of control. You must use liquid termiticide like Tastar. Before they do some serious damage to your property.
They cannot be easily spotted as they do all the activity from inside out. They can be spotted when they create mud tunnels in the cement slabs most of the time. You should inspect it first to catch their activity and then start the prevention.
Termites don’t show any damage to the exterior but they eat everything in the interior hence, it gets difficult to spot them on time. This is the main reason behind giving them the name “Silent Destroyers”.


About The Author


Owais shah is the founder of Townhustle, a pest control blog and resource blog aimed at helping local businesses grow.