Home Loans - Overview

Home Loans is the best option, if you have decided to borrow money to buy your home. You can avail a maximum loan of 85% of the cost of the property, including cost of the land or the loan eligibility whichever is lower. Most buyers in the market go for home loans. In recent days, Home loan take off has increased because of High Income levels and the decrease in average age of borrowers.

Shop for Home loans There are many leading banks in India like HDFC, ICICI, Axis Bank, SBI etc.. offering home loans at different interest rates. Try to strike a best deal in terms of interest and tenure period.

Survey The average age of current borrower is 34 years in India.
The typical salary profiles of those who have availed of loans above Rs.25 to 30 Lakhs are those who earn Rs.50,000 a month and more. The average salary of those who avail loans of Rs.15 Lakh and below is Rs.25,000 a month. Though people avail loan for a 15-20 year period, many repay the full amount, on an average in 7-8 years

Process of a Home loan
The Process of Taking a Home Loan The process of taking a loan could be quite nerve-racking for someone who is unfamiliar with it. Not many people repeat the process of a housing loan and it is just a one-time deal. Knowing the process of taking a loan will help a great deal in going about the entire issue.

1. Choosing the Property
The beginning of the process of getting a housing loan is choosing a property that the borrower is interested in. While choosing the property, one should ensure that he or she is sure about the property and it is to their liking as it is a long term process that is time consuming and properly regulated.

2. Transfer in Ownership
The process of transfer in ownership is very essential in seeking a loan. Lending organisations want to be absolutely sure of the title of ownership while granting a loan.This is to make sure that there is no dispute over the property in question at a later stage. Only after the details are thoroughly checked will the lender go ahead with issuing the loan. Sometimes the lenders themselves do these evasive checks.

3. Derive the Actual Total Loan Amount
There is a limitation on the purposes for issuing a housing loan and a certain percentage of the amount only can be sanctioned. This means that the loan seeker needs to arrange fo the remaining amount through a different source. Some of the expenses borne while buying a property are not covered under the loan and these will need to be financed by the individual. Only after taking all these factors into consideration can one derive the actual loan amount.

4. Documentation Process
The documentation process involved in availing a housing loan is absolutely vital. This process involves looking into various requirements that need to be fulfilled like the loan agreement and security documents. There is also a proposal form that needs to be filled with additional surety documents surrendered. Only on completion of this process will the loan process move forward.

5. Using the Loan for the Right Purpose
Using the loan for the required purpose is essential as the loan amount is sanctioned based on the agreement that it would be used for a specific purpose. The use of the amount in the right manner is a completion of the agreement between the lender and borrower on the reason for the loan.

6. Repayment
The repayment of the loan follows the completion of the borrowing process. The EMI amount is written out for repayment of the loan and the pre EMI inertest is also mentioned. Repaying the loan is to be done in accordance with the terms and conditions agreed upon. The floating rate of interest will need to be taken into consideration for loans that have a provision of foreclosure.