House loan

Buying a house is now a little easier

Blood, sweat and tears…all of these and more are needed in today’s world if one wishes to buy a home. Rising inflation, high costs of constructions and intensifying property price, combines and shrink many home buyers’ dreams to dust. It is practically unimaginable for a mortal to save up money from a fixed income to purchase a house. Even in that respect are masses who might not yet receive enough resources to pay towards a low share of a house value.


But today, people are not condemned to living in rental homes all their lives. Premier banking institutions in India have taken up the mantle of providing houses to those who can afford to buy them – with just a little nudge. This push in the right direction comes from a handy product known as a home loan.


house loan today form a pivotal function in the home acquisition process. Indeed, the home loan makes the process possible at all. While banks have traditionally offered loans amounting to about 70% of the property’s value, today some banks are willing to offer as much as 80% of the house’s value. The balance amount must be arranged by the loan applicant.


Such a sizeable corpus of money – 70% and over – eases the buying process to a large extent. Since most of the funds are provided by the bank, the applicant need only arrange for the remainder from friends or other sources such as investments.


There are several advantages to taking a house loan. For one, it helps you buy and move into your dream home as soon as the money is paid to the seller. For another, it is a structured loan product that is repaid through EMIs over a certain tenure – the payments follow a set pattern every month and are easy to monitor for both the lender and the borrower. Third, taking a home loan from a reputed bank or NBFC results in a good credit score for you.


The promise of owning a home attracts many potential home buyers. Banks also make the process quite easy – several new age banks have easy documentation processes, and they are willing to discuss attractive interest rate terms under certain conditions. Some banks do not charge any foreclosure fees, while others advise customers to opt for the right kind of interest rate (fixed or floating). Some banks are willing to both transfer the existing loan to another lending institution, or accept a loan from another lender, if the customer wishes it.


Banks are also willing to discuss customers’ options in case the latter unfortunately loses a steady source of income and cannot repay the EMIs regularly. However, every bank’s document and property scrutiny process is stringent, and the loan is granted only after several rounds of checks and verification.