Why individuals should opt for home loans in India?


Buying a home is one of the most cherished dreams of average India. It’s also a prized possession for them. However, due to the zooming property prices, it is difficult to buy the dream home with the savings that individuals do over the years. Potential home buyers look for ways to fund it, and housing loan is the best way in the present time. There are a lot of banks and finance companies that provide attractive home loan interest rates and flexible repayment terms. You can compare quotes of top home loan providers online, and choose the best deal that proves affordable on your wallet. Home loans involve a long term commitment of 20-25 years. You can avail a loan to buy a new home, or resale property, construction, renovation, extension, plot land, and top up loans.
Here is the process of applying for a housing loan and get quick disbursal in your bank account:
Proper documents
When you plan to make a loan application, you have to visit the lender’s site to fill-up the form along with the scanned copy of documents or visit in-person to submit. The bank or finance company will decide your eligibility based on the documents and other factors. Bank or NBFCs will ask for a whole set of documents that include identity proof, address proof, age proof, educational proof, professional documents like salary certificate, employment certificate, bank statement and IT returns, PAN card, and property documents.
Interest Rate & Processing Fee
Every lender will charge different home loan interest rate as per their base rate, repo rate from government and there would be a certain processing fee on it. Most banks and finance companies have dipped their interest rates to almost 8-9% with a nominal processing fee of 1-2% on the principal loan amount.
Property Verification
It’s the most important part of loan lending, and the loan will be disbursed once the representative makes a thorough survey of the property. The lending institutions will demand all the legal documents pertaining to the house, such as RERA authorization, municipal permission, builder authentication, etc. They will inspect and give the go-ahead to grant the loan.
Your repayment capability
When lenders are certain about your repayment capacity, they would easily sanction your loan. For this, they will check your income source and its stability. The way you utilize your financial resource, lifestyle, bank balance, existing debt and EMIs, investments & maturity returns, and other factors. The lending firm will check your credit score that depicts your creditworthiness and repayment behavior. Once evaluated, banks or financial companies will decide the principal amount and interest rates they would offer you.
Loan Tenure
Your loan tenure plays an important role in determining the interest rate and principal amount. If you opt for a longer tenure, you will get lower EMI, but end up paying more interest rates, and if you opt for the shorter tenure, you might have to pay higher EMIs, but end up savings BIG on home loan interest rates. So, choose the loan tenure as per your risk potential and repayment needs.
Opt for a housing loan and turn your dream of owning a home into reality today!

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