A home loan is money borrowed from a bank or a lending institution like an NBFC, for the purchase of a house or residential land. In a home loan, the bank agrees to lend money for a specific time period, at a certain rate of interest each month. Home Loan is repaid in the form of EMIs (Equated Monthly Installments). A home loan is a secured loan where the property purchased is taken as security for the money borrowed. A home loan is a cost effective way of borrowing money and taking ownership of a house.
Given below is the list of documents required by the bank to apply for a home loan:
Want to know more on Home Loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products
SEE ALSO: Does MCLR Make Home Loans Cheap?
These are the eligibility conditions on a home loan:
The tenure of the home loan ranges from 5 to 30 years. The home loan interest rate starts from 8.65% and can go up to 12% a year at a bank. NBFCs and HFCs charge a higher interest. Some banks offer special rates to woman borrowers. A home loan can be availed for up to 80-90% of the property value.
SEE ALSO: Tips to apply for a home loan after 45
Home loans are offered by lenders for not only the purchase of a house, but for other purposes as well. Take a look at the list below:
Loans for purchase of land: The borrower can take a loan to purchase only the land and construct a house later on, as finances permit. The borrower can also avail funds to buy a land for investment. Banks offer up to 60-70% of the cost of the land.
SEE ALSO: How To Avail Tax Benefits On Home Loan?
EMI stands for equated monthly instalments. It includes the repayment of principal amount and payment of interest on the home loan outstanding. The home loan EMI calculator gives a clear understanding of the amount that the borrower needs to pay in EMIs. This helps the borrower make an informed decision when availing a home loan. With the home loan EMI calculator, the borrower can calculate the outflow of cash towards the home loan every month. Consequently, the borrower can decide how much money to borrow according to his repayment capacity.
There are various loan aggregators online that make the process of applying for a home loan simple and hassle free. You can apply for home loan online, by visiting the official website of the bank or other private lenders. You can compare the rate of interest offered by different banks as well as read customer reviews.
You can also check your home loan eligibility criteria as well as calculate your EMIs by providing the necessary details. You can apply for home loan online, by filling the online application form with proper details and make a submission.
Before applying for a home loan, read IndianMoney reviews that help you gain knowledge on home loans. IndianMoney provides unbiased advice on home loans and other financial products, to help make informed decisions when availing financial products. IndianMoney research team provides newsletters, articles, videos, and FAQs on various financial products and concepts only to help you make wise financial decisions.
You May Also Watch:
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.