Everything you need to know about Home Loans
Loans for purchasing a home are provided by the banks and other financial institutions to individuals who are willing to buy a house or a property. In this case, the lender retains the ownership of the property until the debt is repaid in full, plus the interest payment. Here we have prepared a list of key points to keep in mind that might help you to know more about home loans.
How long can you get a mortgage for?
When it comes to home loans, you may expect them to have an average duration of around 30 years, with a five-year minimum and maximum limit. The tenure of your personal loan repayment relies on the amount of money provided by the lender as loan, as well as other variable charges throughout the tenure.
What are the home loan eligibility requirements?
Anyone with a steady source of income, whether self-employed or salaried, can qualify for a house loan. A borrower must be at least 21 years of age at the start of the loan period and shall not be above 65 years of age by the time the loan period ends. Same is during the time of superannuation at the end of the loan duration. Specifics such as the minimum and maximum age restrictions, minimum income requirements, and other criteria may vary from one lender to the other.
How much is the monthly payment on a 30-lakhs loan?
With the mortgage on a home loan option, it is possible to get Rs. 30 lakh loan with a variable rate of interest and a fixed period as tenure. The amount borrowed, the term chosen, and the interest rates all go into calculating the EMI. The lower the EMI, the longer is the loan term and hence higher the EMI, the shorter is the loan term.
What is the formula for calculating an Equated Monthly Installment (EMI)?
A borrower’s monthly EMI is determined by a few specific elements when a home loan is approved:
The EMI on a home mortgage includes both principal and interest, which are calculated and repaid in accordance with the agreed-upon repayment plan. Preventing financial stress by learning how to accurately calculate your monthly EMI on a home loan is essential before seeking for an advance.
For the convenience of our customers, we have developed an Apnapaisa EMI calculator which is easy to use. You’ll need the following numbers to figure out how much you owe in EMI payments. Fill out the home loan interest rate with the information you need to get an EMI that is within your budget.
- Loan amount
- Payback period (months)
III. Interest rate applicable
Calculate your next EMI and total amount due at the end of the term, together with the interest that has already accrued, using this handy tool. Make adjustments to the loan amount and the length of the repayment period to find a monthly payment that is within your financial budget.
What kind of protection do I need to provide?
A security interest in the property being financed by the bank as a lender or any other institution can be the property that is being purchased, as most home loans follow the same.
Make certain that the property’s title is free of encumbrances, marketable, and clear with proper legal documents before you buy it. There should be no liens or encumbrances on the property, such as a mortgage, a loan, or a lawsuit.
How many joint borrowers are allowed on a home loan?
A home loan can include a maximum of six co-borrowers. In India, however, co-borrowers on a home loan are limited to immediate family members such as parents, siblings, or a spouse. It is preferable to have a co-borrower with strong credit history and a high credit score, as opposed to one with a poor credit rating, while applying for loans.
Borrowers in India can get home loans from banks and non-bank financial company (NBFCs) because of the high demand that every time the banks are not able to process. On Apnapaisa one can go through the loan offers provided by the HDFC Bank, Axis Bank, ICICI, State Bank of India and its affiliates, Bank of Baroda, and RBL, there are more than 50 banks that offer home loans to citizens and NRIs both.
In addition to banks, there are several NBFCs that offer cheap home loan are India Bulls, Bajaj Finance, IIFL, LIC and others.