Owning a residential property in a preferred location and in a budget-friendly manner is a dream come true for every home buyer. Unfortunately, it is not possible for every aspiring homeowner to achieve. Thus the issue of raising margin money alias token money is the hardest question in life and today in this blog post we help you know all tips to raise margin money for purchasing a property. So, scroll down the page and learn about the smart and easy tips to accumulate margin money to commence the home buying procedure:
1. Check Your Saving
Saving is the one thing which almost each of us does. So, before opting for a pre-approval home loan application form, calculate the amount of savings you have in the bank and at home. This is the easiest way to collect margin money for purchasing a home. Another reason to look at your saving at the time of home buying is the partial financial assistance provided by the banks. No bank offers 100% home loan which is the actual property value that you are required to pay to the builder/developer to won a residential unit. Most of the banks offer 70%, 80% or a maximum of 90% home loan according to the norms laid by the Reserve Bank of India i.e. RBI.
Hence, it is better to use the already saved amount for paying the margin money inspite of taking a loan from somewhere.
2. Apply for Loan against Securities
All mutual funds are subjected to investments is a thing which we hear often. But, this is not only the line as it means what is said. So, not all or the investments are not listed under loan against securities. So, if your mutual fund comes under this listing then apply for a loan against the same. If it doesn’t then look to avail loan against bonds, mutual funds, gold and against other assets you already own. An aspiring homeowner also has an option to avail loan against Fixed Deposit and Investment made in National Saving Certificates.
3. Loan against Life Insurance Policy
Availing loan against Life insurance Policy is also a good option as almost every person has an LIC cover as nobody want his/her family to suffer in case of any unpleasant happening. Thus, we suggest you take a loan against this investment and ensure a permanent address for your beloved family. Remember that the policy should not be owned under the pure term plans.
The application is checked for a number of premiums paid, maturity date and date from which LIC policy begun. This is one of the convenient ways as you are required to payback less in comparison to other loans.
4. Provident Fund Withdrawal
Commonly known as PF, is a good option when you are required to raise margin money for purchasing a property. The organization you are currently employed with or have worked with subtracts a particular amount from the monthly salary and deposit it in the PF account which you can withdraw to deposit the margin money for purchasing a property. The only norm in this process to follow is that a person is not eligible to withdraw PF before completing contribution to the same for a minimum of five years.
5. Public Provident Fund Account Withdrawal
The Government of India offers this investment to all the citizens of the country. A person is required to deposit a fixed amount on monthly basis for six years at least and the beneficiary can’t withdraw money from the same till the completion of tenure. So, if you are depositing money under the Public Provident Fund Account for more than six years then congratulation as you can have a handsome amount to deposit as margin money.
6. Avail Financial Help from known Persons
A friend in need is the friends indeed. So, it won’t be wrong to ask a friend if he/she or they can help you financially in order to raise the margin money to purchase a home.
7. Personal Loan
Similar to a home loan, you can also bank upon personal loan to raise margin money. Get the application form filled up and deposit in the bank as soon as you are ready to start looking for property.