There’s no better place than a Home, but these days getting an own home isn’t a cakewalk. Most of the people turned old dreaming of a home of their own, but due to the lack of financial resources, weren’t capable to get their Dream Home.
However, with the latest developments in the financial aspects of the country, buying a home has become easier than it ever was. With the affordable housing and home for all concepts and government’s push and motivation to the people of buying a home of their own, have turned things in favor of Home Buyers. The Home Loans have become a savior for those who need additional funds to buy a home. Let’s have a discussion on how these Home Loans are acting as a boon to the needy people.
What are Home Loans?
The Home Loans are the secured Loan Types, which are being offered to the people by the lenders (Banks and NBFCs) to buy a home. Since, these are the secured ones, the Property to be bought acts as collateral. In case the borrowers fail to repay the Home Loans, the lender reserves the right to recover the Money through the sale of the property.
Features of Home Loans
- The Home Loans are the long term loans, and the Loan tenure varies from 5 years up to 20 years. However in some cases, it extends up to 30 years.
- The Home Loan is the Cheapest Loan type in India as the Home Loan Interest Rate is least as compared to other Loan types.
- The Low Interest Home Loans can be availed by almost all Major Banks like SBI, HDFC, etc.
- The Home Loan Interest Rate is of two types; floating rate of interest and fixed rate of interest!
- Around 80% of the property’s value can be availed as Home Loans, providing that all other conditions are met!
What are the Major Factors in Home Loans?
There are certain major factors which play deciding role in the Home Loans. These are mentioned below:
- High CIBIL Score allows borrowers to avail Low Interest Home Loans
- The more is the eligibility of the borrowers on all other aspects, the better the Home Loan Interest Rate
- Home Loan insurance allows more security to your home, by getting it insured
- The Home Loans also comes with the processing charge, which may range from 1% to 2%
- The Home Loan Interest Rates which are of two types are the deciding factor in the Home Loans. While, in the floating rate of interest, the foreclosure is completely free of cost, the fixed rate of interest attracts the foreclosure charges
As the Home Loans are the long term responsibility, which needs to be carried on your shoulders for quite a long time, you must evaluate the complete scenario and then should decide whether to opt for Home Loans or nor! However, remember that a Home of own offers happiness and sense of security to the whole family. It’s the heavenly feeling to have a home of own, a dream Home, where you can relax and spend memorable moments with your loved ones.
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