Home loans are best advisable way
of buying a home. It is a hassle free way and a quick option to own a
house. A person should do research on
interest rates at different institutes, before applying to a home loan. Choose
the best home loan with the lowest interest rates. Indian banks Like SBI home loan, HDFC
home loan, IDBI Home Loan & many more offer the lowest rate of interest,
instant eligibility, online and faster sanctions and less paper formalities. If
in case, a person has already a home loan, ask your lender to give better
cheaper home loan. If it does not suits to your conditions switch to other
lender providing cheapest home loan rate.
Purchasing a home is not an easy
work nowadays due to inflation. Thus, it
is an easy option to apply for a home loan from the different financial
institutes. It helps the person to take a home loan from Indian banks, because
it is easy to apply for residency finance. Fewer amount of paper work
formalities leads to the immediate effect. Bank checks the credit history of
the person whether it is a clear credit score or poor credit score.
Almost all the Indian banks offer
the low interest rate at home loans. The interest rates are of two types such
as, fixed interest rate and floating interest rate. One can own a home from any
type of cheap interest rate. Fixed interest rate is constant and do not
fluctuate, but in floating interest rate, it fluctuates according to market
trend.
Types of Interest rates are-
Fixed interest rate- It is the payment at constant interest rate on
EMI’s in the defined tenure period. It does not vary with market fluctuations.
The tenure period of paying back home loan could be semi-monthly, monthly,
quarterly, semi-annually, annually etc. Thus, it is a convenient and easy
method of residency loan. It is good and easy way for salaried individuals who
want fixed monthly payment schedule.
Floating interest rate- It is the payment at variable interest rate
according to the market fluctuations. It may go higher or lower. It is
advisable to read the offered documents carefully, before applying for loans.
Documents required
Many banks require less
documentation but, some of the documents are necessary, before applying for the
home loan.
The documents
required are-
1. Employment proof
2. Age proof
3. Income proof
4. Salary slips
5. Bank statements
6. Resident proof