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Fixed-rate loans offer the stability of a constant interest rate throughout the loan tenure, resulting in predictable monthly payments.
Floating-rate loans on the other hand, may have lower initial interest rates but are subject to periodic adjustments based on market conditions.
It’s important to note that various banks may impose additional charges like prepayment fees, processing fees, and pre-closure fees, depending on their specific loan terms and conditions.
While property investment has proven to be one of the most lucrative opportunities in India, the soaring property prices can be a significant barrier for individuals looking to purchase a home. Home loans serve as a crucial financial tool, enabling countless individuals to realise their dream of homeownership.
In many cases, owning a home is considered a necessity shortly after starting a career. However, it’s often impossible for young professionals to afford the entire property cost upfront. This is where banks step in, offering to finance up to eighty percent of the property’s purchase price, to be repaid over an extended period with a reasonable interest rate.
The symbiotic relationship between borrowers and banks in the home loan sector is a win-win. Banks earn interest over an extended duration, while borrowers gain ownership of their property and enjoy the benefits of tax deductions, potentially even generating rental income if they choose to lease their property.
Home loans can have fixed, floating, or hybrid interest rates. Fixed rates remain constant throughout the loan term, while floating rates fluctuate periodically based on market conditions.
Home loans typically involve substantial sums and have longer repayment tenures compared to other types of loans.
Home loans can be availed for purchasing a residence or for investment purposes.
These loans are typically secured by the property being financed, allowing the bank to seize the property in case of default.
Banks may charge processing fees and other one-time charges when processing the loan application.
Many banks have eliminated prepayment fees, allowing borrowers to pay off their loans early without incurring extra costs.
Home loan EMIs are tax-deductible under the Income Tax Act of 1961, making them an attractive option for long-term investment.
Banks typically require evidence of stable employment, with different criteria for salaried employees and self-employed individuals.
Applicants usually need to be at least 21 years old, and the loan tenure should not extend beyond the age of 60.
A minimum income threshold is often required to ensure the borrower's ability to repay the loan.
Banks assess the applicant's creditworthiness, and a good credit rating is crucial for loan approval.
Applicants are generally required to demonstrate stable residency in the same location for a specified period.
Declarations of other outstanding debts and liabilities are necessary for assessing repayment capacity.
Such as a passport or driver's licence.
To confirm your current address.
Typically in the form of a salary certificate from your employer.
For the last six months or passbook entries.
Listing your personal assets and any existing debts.
For the past 2 or 3 years, depending on your employment type (salaried or self-employed).
We offer a wide range of home loan options for you to compare and choose the one that best suits you.
Comparing loans from different banks and reviewing their terms and conditions can be a daunting task. We streamline this process, providing an easy-to-use platform for side-by-side comparisons.
Once you've made your choice, we guide you to the respective bank's website to initiate the application process and complete formalities.
For more info please contact our team of experts
