Home Loans – The Ultimate Solution For Your Housing Needs
Home loan or a housing finance has become one of the most important and sought after borrowings for people who experience financial problem while buying a home. Moreover, this type of secured finance can also be used to finance home renovation and cost of home construction as well as you can refinance an already purchased house, too. Hence, this finance is absolutely beneficial in the context of giving you huge loan to lessen your financial burden significantly.
Benefits of housing finance -
1. Huge Loans – First of all, as a housing finance, you can obtain as much as Rs 1 crore and more depending on your repayment capacity. In another way, you can imagine the potential benefit of such finance with the fact that it can finance your new house up to 85% giving you an opportunity of facilitating home purchase easily.
2. Easy EMI – When you take a housing finance, you are not supposed to return entire loan immediately. In fact, bank gives you an option of repaying the borrowed finance through monthly set EMI (usually a small portion of the entire loan). Typically, the EMI (Equated Monthly Installment) has preconditioned rate of interest (ranging from 10% to 20% at best).
3. Big Tenure – Usually, a housing finance is lent for maximum tenure of 25 years. This is indeed a great repayment period. With such a big tenure, you can easily amortize the entire finance without putting monetary pressure on your family budget.
4. Rate Of Interest – Depending on your bank's terms and conditions, the rate of interest is charged accordingly. However, this is different from bank to bank. Most banks have also reduced home loan interest rate in order to woo the interested customers. Hence, you also a good option of choosing your finance at a cheap interest rate.
Key Things To Understand -
1. You will be asked by your bank about the submission of original and authenticated documents. Make sure they are original so that you don’t face rejection of your home loan application.
2. Your credit history will be taken into consideration. Hence, you should not forget to bring some corrective measures to improve your credit history yourself before the bank will say you so. An application form is rejected on the ground of poor and unreliable credit history.
Conclusion – There are certainly some odds in borrowing a housing finance, but they are not big troubles as you can crack them. However, what needs to be done is to maintain some cautions on fronts like income and credit history and your repayment capacity.
A home loan is one of the most trusted borrowings to sort out issues regarding home purchase, home renovation and home improvement. You should take this to sort out your needs. There are benefits and some cautions that you need to maintain in the context of borrowing a housing finance.
Related - Home Loan Tips – How To Improve Eligibility
Benefits of housing finance -
1. Huge Loans – First of all, as a housing finance, you can obtain as much as Rs 1 crore and more depending on your repayment capacity. In another way, you can imagine the potential benefit of such finance with the fact that it can finance your new house up to 85% giving you an opportunity of facilitating home purchase easily.
2. Easy EMI – When you take a housing finance, you are not supposed to return entire loan immediately. In fact, bank gives you an option of repaying the borrowed finance through monthly set EMI (usually a small portion of the entire loan). Typically, the EMI (Equated Monthly Installment) has preconditioned rate of interest (ranging from 10% to 20% at best).
3. Big Tenure – Usually, a housing finance is lent for maximum tenure of 25 years. This is indeed a great repayment period. With such a big tenure, you can easily amortize the entire finance without putting monetary pressure on your family budget.
4. Rate Of Interest – Depending on your bank's terms and conditions, the rate of interest is charged accordingly. However, this is different from bank to bank. Most banks have also reduced home loan interest rate in order to woo the interested customers. Hence, you also a good option of choosing your finance at a cheap interest rate.
Key Things To Understand -
1. You will be asked by your bank about the submission of original and authenticated documents. Make sure they are original so that you don’t face rejection of your home loan application.
2. Your credit history will be taken into consideration. Hence, you should not forget to bring some corrective measures to improve your credit history yourself before the bank will say you so. An application form is rejected on the ground of poor and unreliable credit history.
Conclusion – There are certainly some odds in borrowing a housing finance, but they are not big troubles as you can crack them. However, what needs to be done is to maintain some cautions on fronts like income and credit history and your repayment capacity.
A home loan is one of the most trusted borrowings to sort out issues regarding home purchase, home renovation and home improvement. You should take this to sort out your needs. There are benefits and some cautions that you need to maintain in the context of borrowing a housing finance.
Related - Home Loan Tips – How To Improve Eligibility
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