Buying a home that too in a preferred location and in a pocket-friendly manner is a wish of every home buyer. But, it is difficult to find this combination and even if you are lucky enough to get this, the next big question is how to raise margin money for buying property? So, here in this blog post will help you know easy tips to accumulate money which is also known as the token money for purchasing a property:
- Calculate Your Saving
Every person does savings and this saved money usually come into use at the time of buying property. This is so because the home loan sanction amount from the bank is only up to 70,80 or 90% of the actual property value as per the guidelines of the Reserve Bank of India i.e. RBI. So, take a look at your savings in the bank account and even at home. This is the first and smart way to raise the margin money for property purchase.
- Avail Loan against Securities
All mutual funds or the investments might not come under loan against securities. A property buyer can also try to avail overdraft or loan against securities like bonds, mutual funds, gold and even against other assets. Here you can avail loan against FD i.e. Fixed Deposit and Investment in National Saving Certificates.
- Loan against Life Insurance Policy
Life insurance is the one thing that every person invests in as it is important not only for him/her. But it also offers security to one’s family in case of any unpleasant happening. So, you can apply for a loan against life insurance policy if the policy is not owned under pure term plans. Although, the subject of loan approval against a Life Insurance policy depends upon the number of premium paid, maturity date and commencement of LIC policy. Remember that this kind of loan is comparatively cheaper to other loans.
- Withdrawal of Provident Fund
PF as it is commonly known is the best thing to look for when you are required to raise margin money. The company you are currently working with or have worked with deducts a specific amount from the salary and deposit in the PF account which you can withdraw for depositing the margin money to purchase a property. But, the Provident Fund money can’t be withdrawn prior to the completion of your contribution to the same for at least five years. You are rightful to withdraw money from the PF account partially only after the completion of this term.
- Withdrawal of Public Provident Fund Account
This is an investment option offered by the Government of India to the citizens. Here you are required to deposit a fixed amount on monthly basis up to six years minimum as a person can’t withdraw money prior to the completion of this tenure. So, if you have been saving from a long time then withdrawing the Public Provident Fund is an ideal option to raise margin money for buying property.
- Avail Financial Help from Friends
You must have heard friends in need are the friends indeed. So, ask your friends if they can help with a small amount as it will curb the interest money has to be paid after availing a loan even on the securities.
- Personal Loan
This financial assistance is available to almost every person and if you are regular at paying bills and don’t keep any outstanding dues then the banks are happy to offer personal loan over your credibility. Those already having a home loan going on can also opt for a top-up loan in order to raise margin money for purchasing a property.