The advent of Covid 19 has made several people realise the financial and emotional security that personal property renders. This has compelled people to get a home of their own. However, it has been a dream of many but a reality of a few.
One efficient solution to this problem is a home loan that acts as the key of opportunity that allows people from every segment of society to get what everyone desires, a home! Today, getting a home loan from finance companies may be easy but you must have clarity that will allow you to make informed decisions and get you closer to your dream.
Here are answers to the few commonly asked questions about a home loan:
1.For what purposes can an individual take a home loan?
Home loan borrowers, especially first-timers, can take a home loan to acquire a new house or to undergo any repair or renovation of the current house. However, you must know that the policies differ from one bank to the other for second-time borrowers.
2.How long can the tenure of a home loan be?
Ideally, the tenure of a home loan usually lasts between five to thirty years. In a majority of cases, several of the banks provide the borrowers with a tenure of 20 years. The repayment period can be altered depending on your income and age. Furthermore, you can also cut down on the repayment tenure by prepaying the loan.
3.Can an applicant get a 100% home loan?
The answer to this question is No because as per RBI’s issued guidelines, no home loan finance company can lend a 100 percent loan to any applicant. 80 percent of the total value of the property is disbursed in most cases.
4.What are the options for interest rates provided by banks?
The two interest rate options provided by banks are Floating rates and Fixed rates. Home loans with floating rates come with varying charges as it keeps fluctuating according to the market. Because of the variable nature of the interest rate, EMI tends to change every time there is a change in interest rate.
On the contrary, home loans with fixed rates have the same interest rate throughout the tenure of the home loan or until the specified period by the lender. In such a case, the EMI remains stable.
5.Can I not take any other loan after I take a home loan?
You can take other loans like a car or personal loan while you’re repaying a home loan. However, banks will examine your repayment capability before issuing any loan.
6.Can there be two applicants for a single home loan?
Yes, banks often allow a co-applicant when the applicant’s monthly income is limited for the same loan. However, the co-applicant must be either a spouse or parents or children of the applicant.
We understand that there are many more questions related to home loans that you have and IFL- the best housing finance company has answers to them all. Get in touch to clear your confusion and get access to a home loan that makes your dream possible.