Be Aware of These Things Before Opting For Home Loan - Loan Trivia


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Monday 19 July 2021

Be Aware of These Things Before Opting For Home Loan

home loan in India

A home loan is the amount of money that a person borrows from a bank or other financial institution at a fixed rate of interest to be paid back monthly with the EMI. The banking institution uses the property as collateral security for home loans. If the borrower is unable to pay all of his or her obligations, the lender has the legal authority to sell the property to recoup the funds. Though, most people see no reason not to take out a home loan because the concept of owning a property at a low-interest rate is so appealing. These loans make dreams come true for many people, especially young couples, by allowing them to purchase a home rapidly. There are various things that the loan applicant should consider before opting for a home loan in India, some of which are as follows:

  • Credit score

  • EMI obligation

  • Repayment tenor

  • Documentation

  • High loan value

  • Tax benefits.

A housing loan is a simple form of funding for people who want to invest in a residential property. Though the loan option appears to be advantageous, there are several factors that borrowers should be aware of. If a person fails to meet the criteria or prefers a more secure option, they can apply for a credit form such as a loan against property.

There are many reputable companies offering affordable home loans at an interest rates starting from 6.75% per annum for a tenure that may extend up to 15-20 years. The loan clearing process is generally takes only 72 hours if the submitted documents are proper and the applicant meets the eligibility criteria. They provide various other facilities while obtaining a home loan, including an housing loan EMI calculator, Repayment schedule, and much more. Therefore, while obtaining a home loan, he should consider the best Housing Finance Companies in the market. 

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