Type of home loans in India depends on the location of the borrower. There are loans for people living in urban and rural areas. In the cities, there are expensive loans, while for the rural places, it is the low-priced houses that are the best choice. But still, there is a wide gap between the real estate prices and the actual home’s prices.
It may also depend on your status. If you are a non-residential person, you can easily avail the home loans in India through the banks. The prime feature is that you don’t have to go through the cumbersome process of the approval. You just have to fulfill some of the basic formalities. These include filling of the application forms. And by checking certain things, the loan is approved.
The loans for the homebuyers are usually known as the secured loans. This means that you need to pledge the security. The most common security is your house. But if you don’t have any property, then you can go for the unsecured loans. For the high-priced apartments, the tenants can also take the loans.
In case of the tenant home loans in India, the security can be any object such as the monthly income proof, salary slips etc. In case of the homebuyers, the most popular type of home loans in India is the personal loan. This is also the best option for those who don’t want to put their valuable asset as collateral. It is because, they don’t have any assets to be pledged.
But these loans can be a bit expensive. Usually, a person has to pay the interest and the other charges on the basis of the tenure. If the loan tenure is lesser than five years, then the rate of interest charged will be comparatively low. So, the homebuyers should plan the budget well and should take some research before applying for this loan.
Home loans in India are available in the nationalised banks. There are various private lenders as well who can lend money to you. If you are looking for a loan, then it is better to go with the banks. The main advantage of going through banks is that you will get the monetary assistance on the basis of your account. So, you can withdraw the money from your account without much difficulty.
Another option is to go for online loan procurement. Online way of loan procurement helps you to apply for the loans from the comfort of your home. There are various lenders as well on the internet who offer their monetary assistance to the borrowers. You can collect the information about them and can compare them. Once you have compared the loan quotes, then you can pick the best deal.
Moreover, the repayment tenure for home loans in India is quite long. Hence, it is advisable for you to pay back the loan amount as long as you can. The repayment tenure is usually two to four years depending upon the type of home loans in India you choose. You can even opt for the fixed tenure loans if you find repayment difficult.
The other factor that you need to consider is the interest rate of the home loans in India. The interest rates vary from one lender to another. To avail of lower interest rates, you can shop for the deals online. Also, you can reduce the cost by shopping for the deal offline. Before applying for the home loans, you can calculate how much amount you will require.
Moreover, the repayment terms are also important for deciding the interest rates. You can choose the longer term loans and pay off the principal amount more quickly. However, the repayment term is important as it gives you a reasonable idea about the actual cost of the loan. It is advisable to go for a longer loan term if the monthly payments are lower than your budget.
Lastly, choose the type of home loans in India that suits your purpose and requirement. If you plan to use the house as an investment purpose, the fixed rate home loans in India may suit you. On the other hand, if you are looking to repay the loan amount in a short span of time, the payday loans in India may be your choice. You can also opt for the online deals for better facilities.