Home loans can be taken from any of the banks by the borrower while availing of loans. The loans interest rates have been drastically been reducing as the Repo rate of the RBI is also reducing. Thus it is an attractive proposition for the property buyers to buy homes on EMI’s from the banks. The loans start from 6.50% per annum and gradually go on increasing according to the different lenders. The home loans can be taken by people in the age group of 21-60 years of age. The loans can be paid for equal annual installments for 30 years. The loans can opt for the category of payments as fixed interest rates or else flexible interest rates. The loans should be repaid on time to avoid the penalty being charged to the borrower. The NBFC is also another option for availing of loans by the borrower for taking home loans. The loans thus borrowed are eligible for the tax benefits by the borrowers. The loans if not paid by the borrower then in that case the borrower’s name would be added to the defaulter’s list and can be barred from obtaining any of the loans from the banks.
The home loans are being charged the lowest interest rates compared to personal loans, car loans, or educational loans. The home loans interest rates are being purposely being kept lower as the amount of disbursement is high compared to any other loan. Also, the tenure for the loans is high compared to the personal loans. Thus the loans can be repaid for a longer tenure than any of the other categories of loans wherein the tenure can be maximum approved for 5 years. Also, the tax benefit can only be gained on majorly home loans as the same is not applicable for personal loans or gold loans. The loans taken can be repaid faster as well to avail rebate on the loans. The borrower should do a proper survey of the loan’s interest rates before applying for the loans. As some lenders charge lower interest rates while some other lenders charge higher interest rates. Thus proper surveys should be done and the right lenders who are charging lower interest rates the loans should opt from those lenders. The lower interest rates can help the borrower reduce their tenure.
Advice to borrowers while taking home loans
- Avail loans at lower interest rates:
Before availing of loans the borrower should survey the loan’s interest rates. The interest rates are being displayed on the official websites of the banks or else on the finance portal websites. Lower interest rates help the borrower save money on interest repayment. The borrower can become early debt-free due to lower interest rates.
- Pay the installments on time to avoid the penalty:
The borrower should pay the installments on time and should avoid getting penalized. The bank loan installments can also be pre-paid on time by the borrower to avail rebate on the early repayment of the loans. Also, timely payment of the loans installments can help the borrower improve the CIBIL score thus making a clear way for availing future credits.
- Maintain proper CIBIL score for the easy clearance of the loans:
The CIBIL score should be proper while taking the loans and should be thoroughly be maintained properly even in the long term for easy approval of the future credits. CIBIL score has become an important factor while getting the loans approved. Thus proper maintenance of the CIBIL score is necessary. Thus paying the installments of the loans is a necessary factor for the better maintenance of the CIBIL score.
The borrower should keep the above things in mind before the approval of the loans and while availing the loans. Also, the installments should be repaid on time and a proper CIBIL score should be maintained. Also, the borrower should maintain proper documentation before the approval of loans, failing which the loan application can be rejected.