Housing loan – the best option for our basic needs
A nice home to stay is what every body can desire but whether everyone can fulfill this aspiration is questionable. In India, majority of the people belong to the middle income group and buying a house from their bank account might just be impossible for them. Although middle class wages are rising, inflation in India is balancing the increase and people are finding it difficult to improve their savings. So in such a situation one can only look for financial opportunities to meet even his basic needs.
A house to stay in is just one of the basic requirements of a person, but investing in the same is not for everyone. Therefore, to overcome this problem, Indian banks have introduced home loans. Home loan in India provides funds to a person who wants to buy a house. These loans ensure availability at any time of money to buy a house.
A home loan is the best option we can rely on to meet our need for a house. Home loans are easily available in the market and there are many banks and home finance companies that can lend you a loan at an affordable rate. However, you should always remember that there are many problems that can be faced in getting a home loan.
Home loans are available for different terms at different interest rates. Repayment of the loan is done through Equated Monthly Installments (EMIs) which are calculated by the lender and depend mainly on the interest rate charged on the loan and the tenure of the loan. However, different lenders have different methods of calculating EMI. Also, one can easily choose the EMI that suits his budget.
Again, these home loans are available at two types of interest rates – fixed and floating, which provide a choice to the borrower. A fixed home loan keeps your interest rate fixed throughout the life of the loan, while with a floating rate, the loan varies based on the market interest rate. Leading home loan lenders in India are SBI, ICICI, HDFC etc. and if you research them well, there are a range of home loans that range from 7% to 16%.
So you can easily avail a home loan floating in the market, but it is better to compare the interest rate offered by different lenders while shopping for your home loan. Also read carefully the loan agreement that you must sign when taking out the loan. The borrower must also provide certain documents to the lender to avail such a loan.
Therefore, shelter, which is an inevitable need for every person, can be provided through home loans. Just by following a simple course of action, a home loan can be availed by any person in India.
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