Explained: The Concept of Home Loans in India

The cash flow throughout the country has increased greatly in recent years. Therefore, financial institutions look to invest by giving out a wide array of loans. Amongst all the types of financial assistance provided by them, home loan in India are the ones which form of the crux of their investments. The new-age banks and NBFCs offer housing loans to people at way lower interest rates than the ones given out by the traditional financiers and loan sharks. Further, they even offer an additional discount of 0.05% on their interest rates for women borrowers and co-applicants. However, many people are still not completely sure regarding the topic of housing loans; thus, let us take a look at the concept of housing loans in India.

Why do I need to borrow a home purchase loans?

A home loan takes care of all your financial needs to purchase a new property or for home extension purposes. Further, you can even make use of the loan amount to renovate any of your existing properties. The best thing about opting for home loans in India is the fact that you get to make flexible repayments in the form of EMIs (equated monthly installments). These installments are calculated on the basis of the principal borrowed amount, interest rates charged by the financial institutions and the repayment tenure opted by you. The new-age banks and NBFCs (non-banking financial companies) even provide you with an EMI calculator to make your borrowing process easier.

What is the use of this tool and where can I find it?

An EMI calculator is an online tool that is provided by the financial institutions on their online websites. Further, this tool is available for you at zero cost; meaning, you don’t have to pay any money to make use of this tool. Thus, this tool can be used by you to plan out and repay your home loans in India without any sort of hassles. An EMI calculator also helps you to compare amongst the various loan products offered by the banks and NBFCs (non-banking financial companies); to choose and find the best lender. The interface of this tool is extremely easy to make use of and is multi-variant in nature.

How can I find the best financial institution to obtain a home loan in India?

There are a lot of banks and NBFCs (non-banking financial companies) in India that provide home loans, and each and every lender is great in different ways. Thus, we have compiled a list of few factors that will help you to find the best home loans in India for yourself, and they are here as follows:

Eligibility Criteria: The eligibility criteria of each and every financial institution differ from one another; therefore, you should check whether a financial institution’s criteria suit your needs.

Processing fees and other charges: The financial institutions charge you with processing fees to disburse the loan amount into your account. Therefore, check these charges to find the best home loans in India.

Interest rates: The best financial institution will be the one that provides you with the lowest home loan interest rates.