Monday, 28 November 2016

Are You Choosing The Right Home Loan Policy?

Rising cost of residential accommodation is primarily one of the main reasons why home loans have increasingly gained popularity in India. There is a tremendous amount of disparity in demand and supply of 'quality' residential accommodations in India.

Home loans are easy options families can buy the house of their dreams, despite not having sufficient amount of funds. The popular types of housing loans include: Land Purchase Loans, Home Purchase Loans, Home Construction loans, Home Expansion / Extension Loans, Home Improvement Loans, Home Conversion Loans, NRI Home Loans, Balance Transfer Loans, Bridged Loans, etc.

Banks across the country provide home loans to people, allowing them to pay back the entire lump sum through EMI's -i.e. Equated Monthly Installments that are distributed over an allocated period of time. It is offered both by all public and private sector banks operating in India. These loans then become easier to pay by middle-class families in India. 



From the vast amount of banks and financial institutions, customers usually face a tough task to find the right bank/institution which offers the best home loans in India. Usually online portals help here. They offer customers the lowest possible rates through a totally online process; without having to actually go to various banks to compare loan offers and interest rates.

However, there are certain essential aspects any customer who is looking out for a housing finance should pay attention to. Some of the factors include grounds of interest rate, tenure, amount, processing fee, penalties, prepayment charges, guidelines, EMI amount and additional charges. 

A customer who is trying to find the bank/institute offering the best home loan should look for that bank which provides low interest rates, maximum amount, maximum tenure, low EMI amount, no prepayment charges, low or free from processing fee, no additional charges and easy guidelines.

An EMI has to be repaid to the bank or lending institution through proper home loan emi calculator within a specified number of months based on the rate of interest, total loan amount and the tenure of repayment that is agreed upon by both the parties. There are two basic elements in the EMI - the Principal and the Interest. An easy way to find out the total loan amount in addition to the interest accrued on it and then dividing the same by the repayment period.

Usually calculating monthly installments is quite a challenge for loan borrowers. Tools such as a home loan EMI Calculator make it easier to calculate the equated monthly installment amount. They are online calculators which can be accessible anywhere and anytime.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/you-choosing-right-home-loan-policy-1161506.html?]



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