A few reasons why home loans are trending

There is more to your home than just walls and bricks. It is a dream that you have worked hard for- something, for which you have been struggling all your life and save money. However, in recent years, the cost of properties and land has increased greatly. Therefore, people from the Indian middle-class society find it difficult to purchase a place that they could call their own. They often fall short of cash-even after saving every dime and penny; for most of their life. In such times, they often end up borrowing a higher interest rates loan from a loan shark or a traditional financier. However, now they easily fulfill their dreams of owning a house by obtaining home loansfrom banks and NBFCs (non-banking financial companies). There are a lot of financial institutions that have started providing home loans at way lower interest rates than the ones given out by the traditional financiers.

A housing loan is given out by financial institutions for you to purchase a new property, renovate any of your existing ones or for a home extension. There are a number of other benefits of opting for home loan. A few of them are here as follows:

• The financial institutions often give out a discount of 0.05% on the interest rates charged for the women applicants and co-applicants. This empowers women to obtain a housing loan and thus, purchase a property of their own.
• The repayment of a housing loan is done in the flexible form of installments. These EMIs (equated monthly installments) are calculated on the basis of the interest rates charged, principal amount borrowed and the tenure opted by you. Home loans are generally long tenure loans; the financial institutions give out a maximum of 30 years to ease your overall process.
• The financial institutions have also started giving out a number of tools and features to simplify your loan procedure. An EMI calculator is one of the most sought-after tools. This calculator helps you calculate your monthly installments from the comfort of your home or office and they are free of cost.

There are numbers of companies which have started giving out loans to purchase properties. Thus, it is quite difficult to choose the best financial institution offering the perfect loan for your needs. However, there are a few ways through which you can gauge your financial institutions’ worthiness. They are here as follows:

• Reputation: Make sure that you check the reputation of the financial institution before opting for home loans through them. There are numbers of ways to do that; however, the best one is to check the customer reviews on the social media platform and loan aggregator sites.
• Interest rates: Multiple banks and NBFCs (non-banking financial companies) charge different interest rates. Thus, you need to compare and find the best one for you. Because, many a time, one financial institution might offer you lower interest rates than the other one.

Hope, this article helps you to understand the reasons why housing loans are trending in India. Good luck and all the best!

An personal loan would be the first financial help for your family in your absence.