123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Do You Understand The Home Loan Process Well Enough?

By Author: Aishwarya Mahurkar
Total Articles: 291

A home loan process is a comprehensive process. A number of things need to be taken into consideration and for a long period of time. Planning a home loan in India needs time and great amount of effort. Going through the points below you shall understand a few things that need to be kept in mind specifically when you apply for a home loan.

1. Fixed interest rate or variable interest rate?

Choosing the right interest rate is of utmost importance. The final financial planning as approved by the financial consultant must ensure the right choice of interest rate basis. Whether the investment gives a better rate of return on a fixed interest rate or the variable interest rate, which is subjective to the time of investment, must be given high importance. Reading the fins prints of the home loan clauses mentioned in the home loan papers is a must read. Some financial institutions mention that the fixed interest rate is subject to change in case the base interest rate declared by the Reserve bank of India, is subject to a marginal hike.

2. Longer tenure or higher EMI?

The task of alertness with regards to the home loans in India is to be continued well after availing the loan as well. The EMI amount changes with the changes in the interest rate specifically in case of variable interest rate home loan scheme. Even so, whether fixed interest rate or variable interest rate, if at any time, you are required to decide between a longer home loan repayment tenure or higher amount of EMI, it is advisable to choose the later.

The longer repayment tenure seems appropriate, but the hidden fact remains, which is, payment of higher interest amount in total by the end of the loan tenure. The only exception here is if the interest rate is subject to change at the time of, the initial few years of loan tenure. Reason being, the EMI then caters higher interest amount as compared to the principal amount.

3. Home loan, along with a car loan possible?

Yes, it is possible. Availing a home loan, along with a car loan or any other loan is possible in keeping with your credit history and income status. The financial institutions take into consideration a number of factors while approving loans and checking for the same using the home loan EMI calculator tool is advisable.

It is never about availing a loan, but how well can is it availed. Ensuring the knowledge of the minute details of the home loans in India can make a huge difference.

Conclusion: Having a clear understanding of home loan and its clauses, always helps.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the Best Home loan in India and the home loan.

Total Views: 80Word Count: 471See All articles From Author

Investing / Finance Articles

1. All You Want To Know About An Nro Account
Author: Samantha Kennedy

2. Why You Must Outsource Accounting Services Sans Any Doubt And Fear
Author: Lee Bruce

3. Why Door To Door Loans Had Been So Popular Till Now?
Author: David Brown

4. The Latest Trend In Door To Door Loans.
Author: David Brown

5. The Ultimate Revelation Of Door To Door Loans.
Author: David Brown

6. Growing Your Company With Invoice Factoring Funding
Author: Nova Cash Flow Finance

7. All Eyes On The Following Intraday Cash Strategies
Author: robin scott

8. Choosing Chartered Accountancy Profession With Number Of Possibilities
Author: Austin K Loader

9. Greater Noida Triumphs Over Gurgaon To Invite With The Finest Golfing Luxury Living – The Hemisphere
Author: The Hemisphere

10. Towards Benchmarking- Efforts Made Towards Improving Transport Efficiency
Author: Dylan Munro

11. Tips For Ambitious Property Investors
Author: Charlie

12. Need Of The Hour For Investors - Equity Research Reports
Author: Aastha Kapoor

13. Critical Guidelines For Availing Short Term Loans In United Kingdom
Author: David Brown

14. How Do Banks Benefit From An Asset Reconstruction Company In India?
Author: Nidan Narkhade

15. Long Haul Auto Loan: Understand The Pros And Cons Before Saying Yes
Author: David Brown

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: