Mortgage Loan – The Best Option For Our Basic Needs
A good home to stay is what everyone can wish for, but it is questionable whether everyone can meet this aspiration. In India, most of the people belong to the middle income group and buying a house with their bank account may be impossible for them. Despite the fact that the wages of the middle class are rising, inflation in India is balancing on the rise and people are finding it difficult to improve their savings. So, in such a situation, an individual can only look for financial options to meet even the basic needs of her.
A house to stay is only one of the basic requirements of a person, but the investment in the same is not to everyone’s liking. Therefore, to overcome this problem, Indian banks have introduced home loans. Home loan in India provides funds to a person who wants to buy a house. These loans provide cash availability at any time to buy a house.
The home loan is the best option that we can trust to complete our need for a home. Mortgage loans are readily available in the market and there are many banks and home finance companies that can provide you with a loan at an affordable interest rate. However, one should always remember that there are many hassles that can come with taking advantage of a home loan.
Mortgage loans are available for different tenures at different interest rates. Loan repayment is through Equalized Monthly Installments (EMI) which is calculated by the lender and depends primarily on the interest rate charged for the loan and the length of the loan. However, different lenders have different calculation methods to estimate EMI. Also, one can easily go for an EMI that suits their budget.
Again, these home loans are offered at two types of interest rates, fixed and floating, giving the borrower a choice. A fixed-rate home loan keeps your interest rate fixed throughout the term of the loan, whereas with an adjustable-rate loan, the interest rate varies based on the market interest rate. The major home loan lenders in India are SBI, ICICI, HDFC etc. and if you do your research on them, there is a range of home loans ranging from 7% to 16%.
So, you can easily take advantage of a home loan that is floating in the market, but it is better to compare the interest rate offered by different lenders while shopping for your home loan. Also read carefully the loan contract that you have to sign at the time of making use of the loan. The borrower also has to provide certain documents to the lender to avail the said loan.
Therefore shelter which is an unavoidable necessity for any person can be taken care of by home loans. By simply following a simple course of action, anyone in India can avail a home loan.
