"A dream comes true" is
the reaction the day we own a house. But the same cannot be owned overnight. It
comes with great pain, generally by keeping yourself apart from major chunk of
your monthly earnings for a very long time say 20 or 30 years with a proper
check on the inflation. And then we can buy a house.
A type of loan known as Home loan comes handy while planning for owning a house. Now days, getting a loan against any property/house are simpler as compared to earlier days. Various banks and financial institution provide home loans.
Home loans can not only be procured for only owning a house, but can also be procured for many other needs, such as, Repairing/Renovation of existing house, Extension of existing house and others. Banks such as, HDFC bank, State bank of India, Axis Bank and many more provide loans for all the above needs. All you need to do is apply for a loan to the extend required at present and pay the loan amount in Equated Monthly Instalments (EMI) in a span of 20 to 30(future) years along with the interest.
Flexibility in Interest Rate and EMIs: Interest rate charged by banks can be fixed or floating depending which option you want. But there are only few banks such as, Axis bank, Hdfc bank who provides fixed rate option. State Bank of India only gives floating rate option. You can also avail flexibility in payments like you want to pay monthly, quarterly, biannually or annually.
Eligibility Criteria: In most of the cases the minimum age for getting a home loan is 24 years and upto 65 years, wherein, in case of State Bank of India a home loan can be obtained at a minimum age of 18 years and upto 70 years.
Documentation: Unlike in cases of personal loan, Home loan comes with a little more documentation of papers.
Security: Under Home loan, providing security is a must unlike in case of personal loan, as the loan amount is huge. Security under this arrangement is generally equitable mortgage of the property against loan amount.
A type of loan known as Home loan comes handy while planning for owning a house. Now days, getting a loan against any property/house are simpler as compared to earlier days. Various banks and financial institution provide home loans.
Home loans can not only be procured for only owning a house, but can also be procured for many other needs, such as, Repairing/Renovation of existing house, Extension of existing house and others. Banks such as, HDFC bank, State bank of India, Axis Bank and many more provide loans for all the above needs. All you need to do is apply for a loan to the extend required at present and pay the loan amount in Equated Monthly Instalments (EMI) in a span of 20 to 30(future) years along with the interest.
Flexibility in Interest Rate and EMIs: Interest rate charged by banks can be fixed or floating depending which option you want. But there are only few banks such as, Axis bank, Hdfc bank who provides fixed rate option. State Bank of India only gives floating rate option. You can also avail flexibility in payments like you want to pay monthly, quarterly, biannually or annually.
Eligibility Criteria: In most of the cases the minimum age for getting a home loan is 24 years and upto 65 years, wherein, in case of State Bank of India a home loan can be obtained at a minimum age of 18 years and upto 70 years.
Documentation: Unlike in cases of personal loan, Home loan comes with a little more documentation of papers.
- Proof
of identity: Voter ID Card, PAN Card, Driving License or any photo Credit
card
- Proof
of Income: Latest salary slip in case of salaried individual, Income Tax
return and computation of Income for the last two years for individuals
earning livelihood through sources other than employment.
- Proof
of Residence: Bank Account Statement, Water bill, Electricity bill or
Telephone bill.
- Additionally
the lender may require the last six month bank account statement were individual’s
incomes gets credited.
Loan Margin: To
get money lender need you to also invest some money. The 100% of the
requirement of fund cannot be borrowed. Thus there is a linear relationship
between the loan requirement and the margin. Higher the loan amount higher
would be the margin. In most of the cases loan amount ranging upto 30.00 lacs
requires 15% as margin were as other higher loans would require a margin of
upto 20.00%.
For purpose of loan other than
land/plot purchase or new house purchase the margin required is 25.00%
Security: Under Home loan, providing security is a must unlike in case of personal loan, as the loan amount is huge. Security under this arrangement is generally equitable mortgage of the property against loan amount.
Margin is the provision of safety maintained by the banker while advancing against sureties. Documentation is a salient feature of sound lending. The terms and condition under which the loan is sanctioned and the security accepted are put down in writing and signed by the borrower.
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