According to a survey it is claimed by the financial organizations, that there is a vast increase in the number of customers of housing loans since 2012. People are becoming smarter in this digital era and are opting for the financial help fromthe lending organizations for purchasing their own home.
The rate of interest at which the borrowers can avail the home loan is also getting cheaper, encouraging the potential customers to come forward and avail the facility.
Investing one portion of the salary or savings in owning a dream house is not a child’s play. Purchasing the home one admires, is a big step. It is a very exhausting, frustrating and anxiety-filled venture. By providing a lump sum amount of almost 75-90% of the property value, the financial organizations are empowering the borrowers with financial power.
This power gives the borrower a big sense of accomplishment. The borrower needs to pay the 10-25% of the principal amount as margin money.
The money invested on the immovable property gives the prospect of mouth-watering capital appreciation when the property prices are zooming. The rent earned from the flats and commercial areas seem to keep up with the inflation.
After keeping the above points in mind one can move ahead to choose the financial organization and approach them for borrowing money in form of housing loans. Different funding institutes provide the loan at fixed or flexible rate of interest for a maximum tenure of almost 30 years.
Before filing the loan application one must have a proper self-evaluation of theirfinancial status. It’s better to be safe than be sorry. With the borrowers’ co-operation the financial organization provides every option for hassle-free term tenure of maximum 30 years. Under section 80C one can even avail tax benefit, which he or she can use for the EMI repayment.
The flexible rate of interest that depends on the financial health of the market economy changes from one lender to other. At present the rate ranges from 8.70-9.10% on the balance money. To guide the borrowers with beforehand idea of the EMI amount repayment, each lending institute provides a home loan EMI calculator.
The financial organization considers women to be responsible potential customer, so they give women, loan at lesser interest rate of 8.65-9.05%.TruFixedrate of interest is also there, the rate is fixed in the initial 2/3rd years of the tenure, after that the rate changes to floating rate.
The housing loan generally covers the properties like; already constructed property, under-construction property, properties that are to be constructed over the pre-owned plot and existing property that needs renovation.
The amount one can borrow from the lending organization depends on three main factors: job stability, capability of timely EMI repayment, location of the property and the credit score of the borrower. The chance of getting the desired amount of loan is reinforced with addition of an earning family member as co-applicant.
The borrower can be a salaried or self-employed person; even an NRI can avail for the housing loans facility. The generic documents of age proof, address proof and photos are required. One has to provide the salary slips, tax return papers, business papers for the self-employed borrower, and passport copies for the NRI borrower and other documents acknowledging their claims to avail the loan facility.
After scrutinizing each and every document the bank decides to lend money to the customer, but keeps the papers of the property with them as a security for the loan amount.The borrower has following options of repayment like; step-up repayment, flexible repayment, tranche based EMI, accelerated repayment scheme and telescopic repayment option. The borrower has to pay 0.5-1% of the principal amount as processing fees to the financial organization.
Plan diligently before plunging into the great venture. A good and wise planning can help the borrower to have a pleasant loan term with an EMI plan that pinches the least.