Tips and Guidance about Home Loan in India
Home loans are provided based on the market value, mainly estimation given by any indian banks or the registration value of the property. Availing various types of home loans to suit your individual needs at the lowest rates & easy financing can now fulfill the need for a house of your own.Home loan is not a one-time decision; do review the market periodically before availing them. Today there are unlimited numbers of home loan banks in the country wanting to give out Home loans. Given this scenario, it may seem easy getting yourself a loan. But is it really??
Buyers tend to make mistakes while entering into deals, which may not be beneficial for them, so better compare all the variables before signing a housing loan agreement by different banks. However the loan agreement should be finalized only after reading the terms and conditions carefully.You can Apply Home Loan even before you select your property. The loan amount would be sanctioned or approved for you, based on your repayment capabilityPlanning to buy a Home Loan?? Before taking up a home loan certain things need to be kept in mind.Evaluate your expenses and do a market survey about the property buying process. Also analyse and check the impact of your repayment of home loan on your monthly expenditure, as a thumb rule, it’s recommended to make sure the EMI of your home loan do not exceed more than 40% of your gross monthly income.
Banks determine your eligibility based on your repayment capacity and discuss about the loan amount up front. The eligibility for acquiring a home loan is augmented by clubbing income of your father/spouse/mother/son, by clearing your outstanding debts, by stretching your loan tenure, Salaried individuals can increase their eligibility by showing their performance linked income or bonus earned.An important factor that goes into your EMI calculations is the interest rates, which may vary from bank to bank, so do compare them. Also do a complete and detailed analysis of the various options like the interest rates i.e. fixed and floating rate of interest. If two banks give you the same amount of loan but at different interest rates do your math and work out what’s best for you Business Loan.
Fixed interest loans charge an interest, which remains the same through out the tenure of the loan. This means that the consumer is immune to market risk or the possible upward movement in the interest rates. Hence, fixed rate is a good option when the home loan interest rates are expected to move up in the future.As for floating rate loan, a consumer is exposed to market risk and his gain or loss depends on the interest rate condition prevailing in the market. Floating rate is beneficial if the interest rate falls in the future. A floating rate is considered non-transparent and is also known as ‘adjustable rate’.If you decide to opt for a fixed rate loan, you can still switch to a floating rate loan in the future and vice versa Insurance cover (an added cost) Also, many banks may insist on getting your home insured to safeguard their interest. There are various kinds of insurance covers available for you. Apart from getting the mandatory ones you should try to get insurance as per your circumstances. You also have a choice of getting insured from another company without any objection from your bank.
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