Home Loans with Best Interest Rates

                                       

From Home Loan, the person can buy their own home. Though, it is the most delicate finance, as the person has to pledge their most valued asset i.e. the house they are planning to buy. Therefore, if the customer is planning to take home finance then, customer should do a thorough study about the loan and loan providers. The customer should compare various lenders on the basis of the loan amount, tenure, processing fee, additional fee and most importantly on interest rate. The customer should choose that lender that gives lowest rate, maximum tenure, maximum amount, low EMI amount and free from penalties, processing fee & additional charges. This article will help the customer in providing information regarding home loans.

Eligibility Criteria

All banks or financial institutions or housing finance companies have their own set of norms or terms and conditions for the eligibility norms. Though, they are almost similar in one or the other way. The customer has to submit various documents according to eligibility norms, i.e. identity proof, age proof, residential proof, employment details, income proof, latest bank statement and property documents.

The banks verify these documents and decide the loan amount, interest rate and tenure according to these documents and customer profile. The banks provide the loan amount only up to80% of the house market value and also consider the person’s net monthly salary, i.e. 40-50% as an EMI amount while deciding the amount of home finance. The banks give this finance for a longer period normally 15-20years and charge interest rate around 10-16%, which entirely depends upon the loan amount and customers profile, i.e. financial position, source of income, creditability and repaying ability.

The person can apply home finance for various reasons, such as, for construction of home, for extension of the house, for house renovation, for purchase of plot or flat or home, etc. The home finance cost not only involves the interest rate but also other charges such as processing fee, annual maintenance charges, penalties and many more charges.

The processing fee is the fee which is non refundable fee, which all banks or financial institutions or housing finance companies charge to the customer. This fee varies from 0.5% to 4% of the amount of home finance. The banks charge this amount for the processing of the loan application, and it is usually charge while submitting the application form. The person should also check the prepayment charges, as many lenders still also levy charges on the prepayment.