Home Loan: Get a Home Without a Hole in the Pocket

Âconsultant. The present home loan rates in India tend
A home loan is considered to be a wise decision forto vary from 9.5 to 12 percent in context of the
every prospective loan aspirant since the amount offloating rate loans. The reluctance of the loan aspirants
home loan can be used to claim deductions whilewas a defying factor in the past but the trend has
calculating income tax on the overall earnings. As perbeen reversed for the better in the recent times.
the recent positive statements by YV Reddy, theThe information for the same can be easily obtained
present RBI governor, the banks must take immediatefrom the Internet. Internet is considered to be one of
steps to pass on enough benefits to the home loanthe biggest and reliable sources of such information.
aspirants. In this context, the RBI has even takenHowever, you must be ready to cross-check the
concrete steps to ensure that the same is actuallyauthenticity of the provided facts to safeguard the
realized.transactions.
A prospective home loan aspirant must considerYou may also seek the advice of your friends,
important factors such as interest rate, repaymentrelatives and colleagues who have prior experience in
tenure, early payment penalty and processing fee.the world of home loans. This will help you to fetch the
Fixed interest rate means that you, as a home loanbest available deal.
borrower, needs to make repayments of a fixedIn order to get the home loans in the context of the
amount. The floating interest rates, on the other needs,Indian loan market, you are required to submit an
are in direct proportion to the changing market rates.application, traditional or online form. The submission of
This means that a fall in the home loan rates will meanform is followed by the submission of income,
a lower loan repayment amount and vice-versa. Theresidence, age and bank statements. After all the legal
selection of the type of interest rate must be takenformalities have been completed from the prospective
with due care and if possible must be done only afterborrower's end, the Bank then proceeds to
a sound advice by a legal advisor or professionalacceptance or rejection of the home loan application.