A
housing loan helps fund a major portion of the money required to buy a home. A
home is a sign of stability for most of us. It is also one of the biggest
investments thereby ensuring financial security in the longest run. Availing housing
loan also gives you the benefits of saving your taxes. These benefits along
with their clauses are guaranteed under section 80 CC, 24, 80 EE of the Income
Tax Act.
The
principal i.e. the amount your lender lends you, home loan interest rates
on that amount and the tenure of the loan are some of the important aspects.
These components help you make your decision. With several banking and private
financial institutes in the market, you have a wide option of lenders to choose
from. With a stiff competition among them, they vie for your attention by
offering you the lowest housing loan interest rates and special offers which
may include great extent of personalization for you.
Interest
rates may be of two types – fixed rate and floating rate. Fixed interest rate
implies that your home loan interest rate remains constant throughout your loan
tenure. In the floating type, the interest rate fluctuates in tandem with the
market. Fixed interest rates are generally higher compared to floating ones.
Floating interest rate is believed to be less expensive as compared to its
counterpart. With several financial companies, you have an option to switch
between either of the interest rate types. You need to understand your
financial situation well before you can decide the type of interest rate that
best suits your requirement.
The
interest rate offered in the market as of today ranges between 9.50% and
12.50%. There are some companies providing rates as low as 9.15% to 9.30%. You
have all the tools available on the internet to help compare between the interest
rates offered by the best of companies. Opt for the one that offers you a low
interest rate and perfectly accommodates your financial requirements.
You
can also make use of other tools like eligibility calculator and EMI calculator
that are easily available on the internet for your disposal. These should be
conducted as part of primary research once you start hunting for your home loan
lender. Your monthly income, age, existing loans, CIBIL score are some of the
factors that determine how much loan amount you get. The internet gives you
access to a lot of information and details to help get started on procuring
your housing loan.
