Home is a place that
gives the person emotional and spiritual warmth. Real estate prices increase
day by day. It is extremely difficult for the salaried person to buy a home.
Home loans help the person to purchase a home. Several banks provide home loans
at the lowest interest rates.
Types of Home Loan
Person can get a hone
loan for purchasing a house, renovation of home, rebuild the home or for loan against property. Home loan provides
two types of rate of interest that is fixed interest rates and floating
interest rates. Fixed rates mean a person has to give same interest rate for
the entire period. Person gives installments in the form of EMIs. A fixed rate
does not vary according to the market fluctuations. Floating rates mean
interest rate varies according to the market fluctuations. Person gives
interest rates according to the market rates. Sometimes these rates go high and
sometimes it goes down.
Documents required
Banks require following
documents such as the application form signed by the candidate, Employment
details, Proof of educational qualifications, Address proof, Income documents,
Age proof, Identity proof, Bank
statements, a processing fee check, Details about the property and processing fee.This fee is non
refundable by the bank for every home loan form. It varies from bank to the
bank and range from 0.50% to 1% of the amount of loan.
Home loan
eligibility
Bank also checks the
eligibility criteria of the person, before approving the loan. All banks have
their own criteria. Interest rates and tenure period are also varies from bank
to bank. Bank checks the credit score of the person. Person having decent
credit score can get a loan at the best rates. Person having poor credit score
can get a loan at the highest interest rates. Many reputed Banks like SBI Home
Loan, Axis Home Loan,
HDFC Home Loan and more checks the repaying capacity of the person. Bank also
checks the profile, income, turnover, and repayment history.
How much would the
banks finance?
Banks finance 80% to
90% on the market value. Customer initially needs to pay a down payment the
difference between the actual property value and the amount of loan on his own.
Insurance
All reputed companies
provide best life insurance like ICICI, HDFC, Citibank, Standard Chartered,
Axis bank and many more. Life Insurance policy offers installments or return on
the death of a person. Therefore, any person whose death makes a financial loss
to another individual has a necessity for life insurance plan. There are
several insurance plans available in the market people may be confuse to decide
which life insurance they take, but experts in insurance surely guide customers
to choose the right direction with a few consultations.
