A few reasons why you should opt for home loans in India

The interest rates charged by banks and NBFCs (non-banking financial companies) are way lower than the ones given out by traditional financiers. These new-age financial institutions even provide us with a discount of 0.05% on the home loan interest rates. You can make use of financial assistance from a home loan to purchase your dream house or for home extension purposes. You can even renovate any of your existing properties. There are a number of other benefits of opting for home loans, and a few of them are here as follows:

• The best thing about opting for a home loan is that you can make use of the monetary assistance to purchase a property of your own in oppose to living in a rented apartment. The reason being, when you obtain a housing loan, you can still live in the property and gain higher equity with each repayment that you make. However, the same cannot be said about the rented property; because you don’t gain any sort of equity in the property, even after paying your rent on time.
• The repayment of home loans is done in the flexible form of EMIs (equated monthly installments). These installments are calculated on the basis of the principal amount that you borrow, the interest rates charged by the financial institutions and the repayment tenure opted by you.
• The banks and NBFCs (non-banking financial companies) have also started providing various tools such as an EMI calculator on their online websites. An EMI calculator is available for free and can be easily used by you to calculate your installment amount. A sturdy internet connection and an appropriate electronic device such as a laptop, computer, tablet, etc. are the only things that you need to compute your EMIs.
• A home loan is secured in nature and has a longer tenure as compared to the other unsecured loans. The maximum repayment tenure for Apnapaisa home loans can go up to 30 years; thus, you can easily plan your repayments without burning a hole in your pocket. Making timely repayments on the home loan amount will also help you to improve your credit score and history.

The financial institutions have set eligibility criteria that you need to meet in order to obtain home loans in India. These eligibility criteria have been set to ensure that you will be able to repay the borrowed amount, and it is here as follows:

• Income: The first thing that the financial institutions scrutinize is your income source and job stability. Thus, ensure that you spend a considerable amount of time with your current employer before opting for a housing loan. If you are self-employed then ensure that you have a stable source of income record for a minimum of past 3 years.
• Credit score and history: The financial institutions often scrutinize your credit score and history to determine the risk factor involved in lending you the money. Thus, make sure that you make timely repayments on all your previous and current debts. A good credit score is anywhere around 700; anything more than that will help you negotiate the interest rates with the lenders.

An individual can be efficient in dealing with most problems, but financial emergencies can be a nightmare at times. You might need some urgent funds to manage medical bills, host a wedding ceremony or to manage other expenses as soon as possible