by soumya Pandit
Published Thu, Jun 1st 2017, 16:35 | Finance
The borrower in today’s market has numerous choices of banking and non-banking financial companies. Picking the suitable one from the available list follows a meandering path. Some will lure with low interest rates, some will promise better services, but the best will provide loan at market based competitive rate, a good loan to value ratio (LVR), less loan processing, quick disbursement and sufficient tenure for repayment. The best home loan can be provided by the ones who keep their transactions and charges in the open book. They would be ready to go down an extra mile for keeping their customers satisfied.
Considering the following factors, can land you to the best home loan for your dream house: firstly, the maximum proposed amount the financial organization can provide. Secondly, the interest rate at which they are providing the loan amount. Thirdly, loan processing and disbursal speed. Last but not the least is the repayment term for paying back the loan amount.
Quantum of the loan amount depends on the monthly income of the borrower and the value of property. The best home loan amount would be between 60-90% of the property value. Before sanctioning the loan, the organization requires certain mandatory information about the borrower like: occupation of the borrower, disposable income, credit score of the applicant and number of dependents. This information frames the maximum amount of money the organization can sanction on the loan application.
A customized repayment option to suit the borrower’s need is provided by the lending organization. Various repayment options provided are: Step up repayment facility, in which the repayment schedule is directly linked with the expected growth of income. This flexibility allows the borrower to be burden free with the EMI with stable ascending income. In flexible loan installment plans one has to pay higher EMI initially, gradually the EMI amount decreases with passage of years from the loan tenure. Tranche based EMI for under construction properties, accelerated repayment scheme and telescopic repayment option (a longer repayment tenure of 30 years is provided) are some other options. Processing fee can be as low as .50% of the loan amount.
With the available EMI calculator facility the borrower can have the risk management scope, and plan maturely. A citizen of India, NRI, salaried or self-employed any one can apply for the Home Loan India after diligent online research. For women borrower some organizations give up to .05% of the concession on interest rates. They have to provide documents supporting their profession or business. Bank statements, form 16 and other essential documents are required for loan processing. The borrower can choose from the already constructed property, under constructed property, plot of land or renovation of already constructed property for home loan. The organization keeps the papers of the property as collateral which they return to the borrower after completion of the loan term. They provide proper security to the property documents, assuring a safe hand to the borrower.
Stringent terms and conditions and hidden charges of the financial partner would be the last option for the potential borrower to go with. All the online available information can give a prior knowledge to plan the loan amount and prepares the borrower for the dive into the heaviest financial venture of a common man’s life. The best financial partner may not give you the lowest interest rate but they would provide the best services at a competitive rate catering to your requirement. So stop waiting for the best time in the age of inflation, be smart and choose an ideal financial partner to buy your dream home, now!