It is said that one needs three things in life to survive- food, clothes and shelter. And home loans have made it very easy for one to now have a shelter of their own. Read more to learn more about home loan, its types and benefits.
Get Your Dream Home With Home Loan
Home sweet home- is that place which readily offers you with the spiritual and emotional warmth you desire. You dream to have a house but the booming real estate price has made it something almost next to impossible. So is your dream going to fade away with your death or can you colour it accordingly? The answer is you can colour it by opting for a home loan. Home loans are now available with nearly all government recognized banks and other financial institutions with their prime motto being helping all to have their own shelter.
Home loans are generally the same irrespective of whether you are availing it from a government or private bank. The difference that prevails is the interest on home loan. You can go for a home loan if constructing or buying a home but do keep eyes on the type of loan interest you have to pay on your home loan.
Types of Interest Rate On Home Loan
Loan interest rate depends normally upon the loan amount that you want to avail. Also it depends upon the tenure and the type of loan you are availing. Banks usually come up with the two types of loan interest- the floating interest rate and the fixed interest rate. You can easily know the interest amount by getting it done through the home loan eligibility calculator.
Fixed rate of interest– This rate of interest allows repayment in EMI i.e. equal monthly instalment facility over the loan period. It is known as fixed rate of interest since during this span the rate of interest remains the same as decided at the time when the loan was sanctioned. This means that the rate of interest does not change as per changes taking place in the market scenario. But this is not always the case. All banks and financial institutions include the clause when offering fixed rate of interest on home loans that the bank has the right to revise the interest rate during the span of the agreement owing to the unforeseen alterations taking place in the money market scenario.
Floating rate of interest- This rate of interest depends upon the market condition and is likely to vary as per the economic scenario of the nation. A customer enjoys the facility of pre-paying the loan either in part or in full at anytime during the entire loan tenure, based upon the terms and conditions as mentioned in the tenure.
Documents That Are Needed For Availing Home Loan
The list of documents that you need when applying for a home loan include the following:
- A duly signed application form
- Certificate proving your date of birth
- Proof of Identity
- Proof of Address
- Documents stating your income
- Bank statements
- Details of employment
- Certificates proving your educational qualification
- Property details (if the same is finalized)
- Processing fee/draft or cheque
Final Say
You become eligible for the home loan only if the information offered by you matches the criteria set for approval. However, some banks also have their individual credentials set for offering home loans. Do check all these carefully with a home loan eligibility calculator when willing to waive a home loan to colour your dream.
