Today fulfilling a dream of owning a house is not difficult. In India there are many banks and house financing companies that are willing to come to your doorstep to give you a loan. Even if you apply online for home loans you will find your mailbox full of mail from different banks and house financing companies. All of them will claim to offer the cheapest rates along with other benefits on home loans.
Banks and financial companies offering home loans, although have their own terms and conditions, the interest rate they charge is more close to each other is more or less similar in number. Banks and housing finance companies ask for property papers for security reasons. In banking terminology it is called Collateral Securities. There are some banks and financial institutions who ask for deposit of lump some amount for the first time, commonly known as the down payment.
In case of property papers as security banks or finance companies scrutinize the papers and find out their real market value, their intrinsic value. After thoroughly checking property papers if they find them right and fair in nature they considered them as Collateral Securities.
Home loans can be taken for a number of purposes like for building a new house, renovation of existing house, for expansion of existing house, etc. Banks have fixed certain parameters for issuing home loan which should be taken care of while applying for home loan.
You can fill the form for a loan and submit it physically or you can also apply online. If you apply online then you will be asked to give some personal details like security number and driving license number. You might be asked to furnish your previous credit history also. The banks and companies giving loan make sure that you have an ability to pay back the loan on time. For this they ask for your income statement.
Usually there are two types of home loan floating and fixed. In floating rate, interest changes with time i.e. the interest is impacted by various other factors like inflation, RBI increasing repo rates and CRR. In fixed, the rate of interest will remain same throughout which was finalized at the time of signing up for loan. In fixed you might pay an extra amount. In case you want to pay a fixed-rate loan off early, you may have to pay extra for breaking the fixed-rate agreement.
Before signing on the dotted lines read the documents and the agreement carefully and make sure you are aware of all various terms, interest rates and installment dates. Take care of hidden charges also.
Banks and financial companies offering home loans, although have their own terms and conditions, the interest rate they charge is more close to each other is more or less similar in number. Banks and housing finance companies ask for property papers for security reasons. In banking terminology it is called Collateral Securities. There are some banks and financial institutions who ask for deposit of lump some amount for the first time, commonly known as the down payment.
In case of property papers as security banks or finance companies scrutinize the papers and find out their real market value, their intrinsic value. After thoroughly checking property papers if they find them right and fair in nature they considered them as Collateral Securities.
Home loans can be taken for a number of purposes like for building a new house, renovation of existing house, for expansion of existing house, etc. Banks have fixed certain parameters for issuing home loan which should be taken care of while applying for home loan.
You can fill the form for a loan and submit it physically or you can also apply online. If you apply online then you will be asked to give some personal details like security number and driving license number. You might be asked to furnish your previous credit history also. The banks and companies giving loan make sure that you have an ability to pay back the loan on time. For this they ask for your income statement.
Usually there are two types of home loan floating and fixed. In floating rate, interest changes with time i.e. the interest is impacted by various other factors like inflation, RBI increasing repo rates and CRR. In fixed, the rate of interest will remain same throughout which was finalized at the time of signing up for loan. In fixed you might pay an extra amount. In case you want to pay a fixed-rate loan off early, you may have to pay extra for breaking the fixed-rate agreement.
Before signing on the dotted lines read the documents and the agreement carefully and make sure you are aware of all various terms, interest rates and installment dates. Take care of hidden charges also.
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