General insight into the topic of a home loan in India
Isn’t it every person’s dream to buy a place that they could call their own. However, the rates of the property market in India have sky-rocketed quite a lot in recent years. Thus, even after saving every dime and penny that they could find, people are still unable to purchase their desired property. However, now they can easily make use of the housing loans given out by the financial institutions in India to purchase a new property, renovate their existing ones, or for home extension purposes. Further, the interest rates charged by a new-age financial institution for a home loan is way lower than the ones given out by traditional financiers and loan sharks. There is also an additional discount offered by these banks and NBFCs (non-banking financial companies) for all the women borrower and co-applicants of a housing loan.
However, today in this article, we will be discussing the topic in general and the things that every future borrower should know about, and they are here as follows:
Why apply for a housing loan in India?
There are a number of benefits of applying for a home loan through a financial institution, and they are here as follows:
* The repayment of a home purchase loan is done in the flexible form of EMIs (equated monthly installments). Thus, you can easily plan out and make sure that you never default on any of the repayments.
* Home loans are generally long-term loans; the repayment of these loans can go up to 30 years- depending upon the tenure that you have agreed with the lender.
* The financial institutions even offer an EMI calculator on their online websites for free. Therefore, people can make use of this online tool and compute their repayments without spending a single rupee from their wallet.
What is an EMI calculator?
This is an online tool that is offered by the new-age financial institutions to make the borrowing process easier for the people. There are a ton of advantages of making use of this tool, and they are here as follows:
* You can easily calculate your installments on the basis of your principal borrowed amount, interest rates charged by the financial institutions and the repayment tenure opted by you.
* This tool is multi-variant in nature; thus, you can obtain multiple options by changing the information. This will help you to compare and find the best home loans in the market.
How can I apply for a housing loan?
You can easily apply for a home loan in India, as long as you fulfill the eligibility criteria set by the banks and NBFCs (non-banking financial companies), and they are here as follows:
* You need to be an Indian citizen above the age of 21 years in order to apply for a home purchase loan in India.
* The financial institutions also scrutinize your credit score and history; thus, make sure that you make timely repayments on all your previous and current debts.
* The banks and NBFCs (non-banking financial companies) also check your income source and job stability. Therefore, ensure that you spend a considerate amount of time at your employment before applying for a housing loan in India.