Home Loan India - Turning Dreams Into Reality

Posted by Neetarao on September 22nd, 2016

One of the biggest aspiration in any individual’s life is to own a house.But, a lot of times, people have to lay a foot back and compromise with their dreams as a result of the lack of financial resources. The zooming property rates, just adds to the hurdles whereas growing inflation devoid us from sufficient savings. Construction costs as well as rents, everything have seen a major hike over the years. Thankfully, there are a lot of government housing loan schemes prevailing in the market which help people to buy a house with their hard earned money. When it comes to availing a loan, government banks are always more reliable, also they offer much more flexible plans compared to private lending bodies.

Buying a house isn’t a small investment. For some it is an investment of a lifetime and thus, it should be done with utmost care. Make sure to do some homework before you apply for a housing loan.

If you happen to be a first time loan seeker, there are a few do’s and dont’s that you need to follow, such as:

• Do not jump to the first alternative that comes your way
• Do not settle for anything which does not suit your requirements fit in your budget
• Have a look at your credit score
• Accumulate all the relevant documents that will be required for submission

You may have to stay committed for at least ten to fifteen years to repay a home loan in India so make your decision wisely. The interest rates may rise and fall depending on the type of loan you chose. There are two types of interest rates-fixed as well as floating. Fixed interest rates remain constant over the life of the loan while floating interest rate fluctuates as a result of market dynamics. Interest rates are applied by lenders depending on the availability of liquid in the market, monetary policies, market dynamics, inflation, etc. Avoid purchasing properties when the market is down i.e during circumstances such as inflation.

Attractive interest rates up to 9.45% are offered by leading lenders these days without any processing fee. The amount of loan preference may vary from person to person, but the maximum that you can obtain, solely depends on your income source andestimated business growth in the long run. Generally, when you avail a Home Loan in India, the tenure offered is around 5 to 20 years. But again, it depends on factors such as the customer’s profile, his/her age at the time of availing the loan and any other terms and conditions that may be applicable.

Home loans are available for a variety of purposes such as an individual home loan for extension purpose, home loan for NRIs, plot loan, and so on. As far as the eligibility is concerned, it is from 1 year to 60 years. Parents of children below 18 years of age, can avail a Home Loan in India in the name of their child. The following documentation will be required at the time of availing the loan:

• Application form duly filled and signed
• Identity and residential proof
• Latest salary slip
• Bank statement of the last six months
• Property documents