Every Indian has a dream of purchasing their own home, and in the present scenario, multiple financial institutions are competing to turn that dream into reality. In the last few decades, the average income of an Indian family has increased. Desire to own house has led to a serious hike in property prices as well. This too much price hike has made difficult for a common man to purchase a house with his savings. That’s the reason behind the growth of home loan in recent years.
What is Home Loan?
Loan for home is the amount borrowed from any banks or financial institutions for purchasing a house. Consumer repays the loan amount in EMIs for the desired tenure. This EMIs are calculated at the rate of the chosen interest rate. Home loan rates are of two types fixed and floating, make sure you choose the desired interest rate during the documentation. Points to consider while opting for floating or fixed interest rates:
Go for the floating rate: if you expect interest rates to fall and you are unsure about interest rate movements.
Go for a fixed rate: if you are comfortable to pay the EMI you have committed and you expect interest rates to rise.
If you are unable to decide you can opt for a combo which is partly fixed and part floating or you can switch between a fixed and floating rate by paying a nominal fee.
How to borrow?
The biggest question is what you should opt for, the loan from any bank or non-banking housing finance company (NBFC). Every bank and non-banking housing finance company are offering home loans with competitive featured packages. Loan repayment period, processing fee, interest rate, etc are the key factors you must consider to choose between a bank and NBFC. Home loans offered by both institutions might seem similar but the loans have distinctive features in terms of the regulatory environment and fund sources. NBFCs are regulated by the National Housing Bank (NHB) whereas commercial banks are regulated by the Reserve Bank of India (RBI). NBFCs have to procure a certificate of registration from the NHB to be able to lend.
How to know your eligibility and EMI?
Every HFC provides home loan eligibility calculator and home loan EMI calculators on their website. Home loan eligibility depends on your monthly income, loan tenure you like to opt for an interest rate. A simple form is provided with these fields using which you can calculate the amount of loan you are eligible for. Based on the loan amount you are applying for with loan tenure and interest rate values you can calculate loan EMI as well. Using these calculators you will get a fair understanding of the ratio of the principal amount against the due interest, based on the time period and interest rates.
Make My Money is one such company that is always there to solve out all your loan related issues. They can help you to get loan approvals from various banks in India. They are very customer friendly and quick processing with hassle-free approvals. Approaching Make My Money is another easiest way to get a home loan.