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Things To Know Before Opting For Home Loan

By Author: Aishwarya Mahurkar
Total Articles: 291

Applying for a home loan in India is a big decision and must be taken with the utmost care. There are several factors that one needs to be aware of so as to be able to prepare a convincing home loan application for the bank. Though, it is still believed to be one of the ideal sources of finance to help you purchase your dream home. Here are the top reasons that make housing loans your best option:

1. It is a secure way to buy a house

A home loan in India will provide you roughly 80 percent of the entire home purchase amount. As compared to money lenders, the percentage charged on the loan is much lesser. One of the greatest benefits of a home loan is that its payment is stretched over tenure. Hence the burden to repay the entire amount in one go does not exist. The borrower will be required to pay back the loan in monthly installments called EMIs on which a certain percentage has been charged.

2. Investment proposition

The rates for home loans are typically lower than those of personal loans and hence are an easier option to consider. Purchasing a house is a long term investment and is extremely likely to rake in returns for the owners. Unlike other investments where the liquidity rate is higher, the resale of a house takes at least four to five months. This ensures that you cannot change your mind too easily about it and increases your chances of high returns on your home investment.

3. Interest rate change benefits

When applying for a home loan, the bank provides you with the option of choosing a fixed rate of interest or a floating interest rate. While many might believe that opting for a fixed rate of interest may be a safe and cheaper option it is not necessarily true. Though a fixed rate of interest does ensure stability, if the overall interest rate level decreases, you will not be able to avail this benefit. Opting for floating interest rate allows you to avail the benefits of a fluctuating interest rate. The interest rates are usually 1-2.5 percent lesser than those of fixed interest rates.

All in all, home loans in India are one of the most secure sources of finance that one can opt for. Unlike the olden days, a loan is a common finance option to consider. There is no longer any stigma attached to the activity. Home loans are a great form of investment and greatly help people to purchase their dream homes.

Author Bio :

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

Total Views: 45Word Count: 452See All articles From Author

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