Have dream home with Home Loans

Having own home are everybody’s dream and desire. The person spends all his accumulated wealth and savings for this purpose only. However, the entire savings and accumulated savings are also not enough to buy a house/home/property, as the prices of the property are increasing like anything. The person, whose financial background is strong, can think it is an easy task but for many people arranging funds for purchasing a home is a tough task. Therefore, banks have made a product, i.e. home loan, for this segment of people, to satisfy their desire of having own home.

The home loans gain immense demand among the consumers within a short period of time. Currently, most of the home seekers avail this loan for having their own home. The loan justifies its name. It is found out that billions of transactions are made for home loan through financial institutions; housing finance companies, NBFCs and financial institutions and the number of the amount are increasing every day. The person can avail home loan, in two forms: fixed rate home loan and floating rate home loan.

Fixed rate Home Loan

The fixed interest rate means that the interest rate will not change if there is any change in the market rates. In the market, whether interest rate goes up or down, it does not affect the fixed interest rate. The customer pays same EMI throughout the loan tenure, but in reality, the banks give clause that the bank can revise the interest rate after a certain time period, usually it is 3 years. The customer benefitted if the interest rate goes up in this case.

Variable rate Home Loan

The floating interest rate or variable interest rate is that interest rate that changes if there is any change in the market interest rate.  The person is benefitted if the interest rate goes down in this case, as the interest rate of the loan will also come down. Even banks do not charge prepayment charges on floating rate home loan.

The home loan is made up in such a way; that person can easily afford its total cost and interest rate.  The growing demand and competition among the lenders has compelled the financial institutions to provide this facility online, so that more and more customers apply home loan through their bank or institution. It helps the customer, as the process of loan is little faster through online mode.