While
home loans are easily available, it is essential to avail of the one with the
lowest interest rate, thereby saving money. Important criteria such as loan
percentage, lowest fixed and floating interest rates, availability of
prepayment option, special concession for women and senior citizen etc, will
help people to choose the home loan best suited for them.
Taking a
home loan in present day has become very simple due to more banks and private
lenders offering flexible interest rates and various budget options. In this
wide market, it is important for one to do their research and choose the one
which allows them to save the most money. Every year, banks launch new home
loan schemes and introduce loan options which suit the economic trend of the
country. Public sector banks will not raise the home loan interest rate as they
are pressurized by the finance ministry to protect the home loan borrowers.
Four ways
in which you can identify a good home loan scheme are:
1.
Check the percentage of loan offered:
One can
decide which is the best home loan based on the percentage of the home loan
offered. If one bank is offering 80% of the amount required to buy the house
and another is offering 85%, it makes sense to choose the latter. This is
helpful only if you are unable to afford large sums for down payment but
subsequently, your EMI will increase in the percentage amount offered.
2.
Analyze the interest rates and prepayment charges:
The
smartest way to save on home loans is to choose one based on the rate of
interest and free processing offered. Checking for the EMI, prepayment charges
and processing fee and looking at comparative rates are good ways to sift
through to the best home loan offers. According to the RBI, banks are not allowed
to collect a prepayment charge from home loan borrowers for floating interest
rates. It is also easy to change the loan from one bank to another along with
the transfer of balance.
3.
Consider loan process and time involved:
The
process of applying for a loan is a lengthy procedure and requires the
submission of many property and income related documents. The time taken for
the application to be considered and the loan to be disbursed differs from bank
to bank, but this time should also be taken into account when considering a
loan. Apply to a bank which has a simple process and saves time with better
schemes. While there are agents who can guide you through this process, it is
not possible to gauge their credibility. Researching can help you find the best
home loan schemes which take the least amount of time. Applying for a loan
online would also reduce the amount of time it takes for the loan to be
approved.
4.
Special concession schemes:
Some
banks would offer special concessions to senior citizens and women which would
save them a considerable amount on the interest rate. People could also look
into different kinds of loans such as hybrid loans, joint loans, etc.
Choosing
the best Online home loans
scheme would mean that you would save money in the long run. When the plan is
suitable to your financial conditions, it also reduces the stress induced by
taking a home loan.
No comments:
Post a Comment