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Introduction of home loan

Young or old, a perfect home is the dream of every person. Owning a property has very easy nowadays with the advent of property loans. A home loan can be availed from banks or any other housing finance companies.

home loan can be availed from banks or any other housing finance corporation. A lifetime investment can be made based on a comfortable budget. Both salaried and self-employed people can avail the home loan with easy repayment schemes. The real estate market is slowly turning into a buyers’ market with price cuts and which is make lower interest rates for home loan.

The maximum amount which can be procured needs to be calculated based on the income of the individual along with his family. Instant Home loan Quotes from Top Banks, Lowest, Easy Repayment Options, Minimum Documents Required,These are a range of Home Loans available:

Home Purchase Loans:

for the purchase of a new home.

Home Improvement Loans:

for repair works and improvement /renovations in a home that you have already purchased.

Home Construction Loans:

for construction of a new home.

Home Extension Loans:

for expanding/extending an existing home.

Land Purchase Loans:

for purchase of land for home construction/investment purposes.

Balance Transfer Loans:

helps you to pay-off an existing home loan and avail the option of a loan with a lower rate of interest.

Home Loans for NRIs:

build/buy a home in India. EMI is payable till the loan is paid back in full. It consists of a portion of the interest as well as the principal.

Income Eligibility

This is an important determinant the home loan eligibility as well as repayment capacity depends on the financial position of applicant,his/her net income and other loans obligation (secured and unsecured) etc. determine the amount of loan he/she is eligible for home loan. Every bank financial institution fixed minimum level of income for apply home loan.

Cibil Score

Credit score role is important and critical in home loan approval process. Your credit score capability to pay back a loan on your credit information report If you have been made good repayment of your credit card bills and previous loans (Personal loan / Home loan / Business loan / Mortgage loan / vehicle loan) on time then your credit score will obviously be good.

Age eligibility for Home Loan

Age is one of the important part in eligibility criteria. The loan must terminate before or at 65yrs of age or age of retirement wherever is earlier.Age also determines your loan requirement (or) businessloan eligibility for example one who applied business loan his requirement is 5lac his financial eligibility also support his loan requirement but his age is 60 years,here he must add co-applicant for age limit criteria.

RATE OF INTEREST FOR HOME LOAN:

There are many rate of interests available in banks / financial institutions. A fixed interest rate remains constant throughout the loan tenure regardless of the market conditions whereas a floating interest rate can decrease or increase depending on market fluctuations. For instance, it increases when RBI hikes up short term interest rates. Banks usually quote the floating rate loans as their index rate (prime lending rate) plus or minus . Banks usually increase or decrease their prime lending rate when the RBI increases or decreases short term interest rates.Fixed interest rate:Interest rates can be calculated at a flat rate keeping the outstanding amount (i.e., the amount on which interest is calculated) constant throughout the loan tenure or at a reducing balance rate, which lowers the outstanding amount as the loan is paid back.Reducing balance rate: Reducing balance rate of interest calculates the interest for each period based on the actual outstanding amount of loan.

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