Features of the property loans.

Posted by Anurag Mishra on May 6th, 2017

Owning a property is any individual’s big dream in life. Whenever you buy a home or any property there you should do a lot of market research on the subject. The market research will help you get the right kind of property also you can avail for a right property loan which best suits your need. The loan against home is given by various banks and non-banking institutions across India. These loans are given at a lower interest rate which ranges between 8.7 to 9 %. The processing fee charged over the property loan is generally 1-2 % of the loan amount.  The loan amount which is sanctioned is therefore determined by a lot of factors like the location of the property, the age of the property, and theage of the property while the loan is availed, property age at the maturity, the income of the individual and the age of the individual.

Property loan has made the dream of owning a house of a common man very affordable and feasible. With the rising property rates it is impossible to buy a house completely on the savings of the individual.  Going for traditional finances and personal loan would burn the pocket of the individual.  As these options have higher interest rate and there is no flexibility in the tenure of the repayment of the loan. So it is always better to go for a loan against home which is given by the lending institutions. As these property loans are designed as per the convenience of the individual.

The lending institutions also consider the credit history of the person while availing the loan against home. The credit history is dependent on the regularity of the EMIs you have paid earlier. If you have paid your EMIs regularly you will have a good credit score, which will help you in availing a better loan. Also you can negotiate with the lender for concessions in the interest rate.  The EMI you need to pay can now be calculated with the help of the EMI calculators, those EMI calculators will help you get an insight into the amount which you need to paid on monthly basis to the lending institution. This will help you plan your expenses accordingly. If you have planned your expenses earlier you will have not have financial problems. Remember that the loan you have taken is affordable so when you want to repay the loan you don’t feel burdened by the loan. The EMI of the loan should not be more than 30-40 % of the salary as you will also want to meet your daily expenses.

Banks and the non-banking financial institutions maintain a margin on the property loan where the loan amount provided to you by the lending institutions is only 80 % of the value. Additional costs that include would be processing fees, registration fees, stamp duty would be done by you. One can also avail for tax benefits under on principal amount of the home loan under section 80Cof the Income Tax Act, 1961.