With the
property rates in India touching the skies, the only way for one to own a home
is by getting house loans. It’s a practice as old as time to buy property as
investment and also to take loans to purchase new property. Years ago, our
ancestors would take loans from the wealthy men in the village to expand their
businesses and provide for their families. Today, that practice has been
polished and now we can take home loans from banks, in a sophisticated,
organised and official way.
Most
people today, prefer to get their home loan online. This is because, like
almost everything else, getting a home loan online is easier, more convenient
and you can also explore more option in a one place than is possible for you to
do in person. You can also find the best housing
loan interest rates online and find the loan
that suits your needs the best.
The
processes of getting a home loan, housing loan tax benefits and choosing the
right home loan can be a very daunting task, especially for someone who is a
novice at finance matters, hence here’s a guide that will help you choose the
right home loan for you.
1. Eligibility: To get home loans you need to
first check your eligibility. Salaried people usually find it easier to get
home loans, but that does not mean that self employed people never get them
either. If you can provide enough proof of income to satisfy your loan provider
that you will repay the loan then your loan will get sanctioned. Another thing
is the amount of loan you’re eligible for, this is based on your income, assets
and your repayment capability.
2. Housing loan interest rates: This
is perhaps the most important thing that you should know and understand before
you apply for a home loan. Housing loan interest rates are of two types, fixed
and floating. A fixed interest rate is where you pay interest at the same rate
throughout the term of your house loan. A flexible interest rate is when your
interest is subject to market changes and can fluctuate due any change in the
market.
3. CIBIL Score: Your CIBIL or
credit score is a very important factor to take into consideration when
applying for a home loan. When you borrow or even
apply for a loan you bank takes in to consideration the your credit score which
includes your credit status, your spending habits and your income.
