Home loans in India are at a never-before rate of interest. Because of the fourth-time rate cut, the interest rate payable on home loans has decreased which has resulted into lower EMIs. The people in India use home loans for buying a flat, building homes, buy land for their upcoming home, renovate the existing home, and more. Home loans in India offer many economic advantages. People are able to fulfill their lifetime dream of buying a home, save tax, save on interest, opt for flexible terms, and also can avail up to 85% of the loan. Applying online housing loans has become hassle-free in the present time.
Many people favor home loan finance because it is available at low interest rates and repayable over the long tenure of as long as 30 years. These days, an online application procedure is adopted to apply a home loan. Many people visit the online website of the concerned financial institution and then file an online loan application. After this, the concerned financial service provider informs the customer regarding the borrowing amount available and the documents required. Today, customers can go for online housing loan 24×7.
Here are the easy to do steps for a home loan:
Point of contact
The home loan
application form is available both online and offline. An online application
form helps Financial Institution in establishing the connection by making a
call back to the customer. At this point, the customer is informed about the Loan
amount, the documents required, the rate of interest applicable, the disbursed
amount and the repayment period.
Submission of documents
In online home loan
application, a customer relationship executive visits the customer to collect the
required documents. The property documents are of utmost importance in these
types of loans.
Verification of application and property
A verifier will
properly examine the application form and verifies the authentication of
property documents. This is the most important part of a home loan process.
The tenure of the loan
is flexible. One can choose the tenure based on his/her convenience of repaying
the Loan amount in monthly equal installments (EMIs).
Home loan disbursement
In this last step,
the appropriate amount of home loan is disbursed to the bank account of
customer. The amount disbursed depends on repaying capacity, and net worth of
assets or property papers as submitted with the financial institution.
Home Loan Rates in India
There are various
types of financial institutions offering home loans. These institutions are
either operated by the government or privately owned. Different institutions
have different home loan rates. These home loan rates keep floating depending
up on the state of economic. The central body that regulates interest rates in
our country is the Reserve Bank of India.
The usual interest on
any home loan varies from 8 percent to 11 percent. The home loan interest rate
is on the lower side in government owned financial institutions. The private
finance services charge high interest rates on home loans.
To avoid economic
impact on your home loan, fixed interest choice is available for home loan
customers. In this, the customer opts for a fixed rate of interest for the
entire repayment tenure until the full repayment of the loan amount. Be
responsible and decide on a floating interest rate for easy repayment of your
home loan. A home loan customer can also opt for the floating interest rate for
easy repayment of home loan.
There has been several
cuts in the interest rate within a short span of time. This came as a monsoon bonanza
for the customers planning to avail home loan to buy affordable house at their
The big banks are
also planning to give the benefit of the decreased interest rate to the
existing home loan customers countrywide. The home loan rates in India have decreased in the last few months constantly for
the fourth time which was beneficial for many and a matter of loss for some.