Home loan is an amount being lent by various banks or NBFC to the individual to buy a house, purchase a plot, construct a house, repair & renovate the house, balance transfer of existing home loan, etc. Bank or NBFC mortgaged the property and charged EMI (Equated Monthly Installment) on the loan amount being lent by them. EMI consists of both interest and principal amount, which has to be paid by the borrower to the bank or NBFC. EMI calculation depends upon three factors i.e. (i) Loan Amount, (ii) Loan Tenure, and (iii) Rate of Interest. EMI on loan amount remains same throughout the loan tenure, if rate of interest not changed. In India, owning a home is one of the key factors of success. There has been a continuous desire to own a home as there is a significant rise in the disposable incomes, particularly in urban and semi-urban areas, tax rebate on repayment of housing loans, declining rate of interest and rises in the nuclear family,. As there is a huge demand, the price of the property is very high, and owning a house is a major decision for an individual. As the price of the property is very high, home loan plays a major role for an individual to buy a house.
Type Of Home Loan
With people becoming more and more open to home loans, loan providers are coming up with better and more attractive home loan offers. With a host of cheaper home loans on offer, it is best to do a home loan comparison first and then make a decision. Home loan is a relatively broad category and is not limited to only purchasing a house whether new or old. Loan providers are offering Home loans for different purposes according to the changing needs of the customer.
Home loan can be of the following types:
What Are The Documents Required For Home Loan?
Applying for home loans online or offline requires the borrower to submit a list of documents as demanded by the loan provider. Documents required for home loan vary as per the employment type of the individual, i.e. salaried or self-employed.