Why home loans are better funding option to buy their dream home!

Author: Anurag Mishra

Nurturing the dream to buy your own house might make you feel hopeful and happy but soaring high real estate prices will surely wake you up from the dream. But that doesn’t mean you should give up on your dreams as you can easily get a decent housing loan if you are eligible for it. There are many public and private banks in India that offer a range of home loans at affordable interest rates. All you have to is to pick the best loan option that meets your needs and apply for it.

Home Loans are secured type of loan products that fund a major part of the amount you need to buy a new property. You can also opt for a home loan even if you wished to renovate your residing house or want to extend an existing property. Although you can also check out other loan options following pointers will further explain why home loan products are best funding option you can opt for:

Reasonable interest rates:

Whenever a person opts for any type of loan product, they are more concerned about how much rate of interest is charged on the loan borrowed. The concern is justified as when you pay the installments on loan product e.g. home loans; you actually repay the principal amount as well as pay for interest amount as per the rate of interest. Most housing loan providers offer fairly reasonable interest rates as the tenure period for home loan products is longer compared to other loan products. You can also use home loan EMI calculator to know the ideal rate of interest on the loan amount you want to borrow.

Manageable repayment period!

Speaking about the tenure period, most home loans availed in the financial lending market offer tenure options between 20-25years. Most loan lenders know that the loan amount an applicant borrows is simple too much and longer tenure option help the borrower to manage and follow EMI cycle very well. Such benefit also works in favor of loan lenders as fluent installments cycle means less number of loan defaulters. With longer tenure period you can plan your installments very well as per the monthly financial budgeting. Although someone loan aspirants also choose shorter tenure as they are capable to bear the higher interest rates as per their income capacity.

The flexibility aspect!

Just because home loans are secure kind of loan product, doesn’t mean it has to be rigid in any sense! Most housing loan lender offer features like the ability to choose between a fixed or floating rate of interest, balance transfer facility or even get other benefits if you choose your lender right. You can choose a floating interest rate to reap benefit positive market fluctuation and policy change which would give you some relief in paying interest amount. If you are not satisfied with the current loan lender over the unfavorable rate of interest charged you can transfer the home loan to some other loan lending party.

Use of your Credit score:

Much like most other loan products, you can also stand a chance to earn brownies points on home loans, if you have defendable CIBIL score. Although every housing loan lender has their own norms to evaluate your credit score it’s wise to keep your CIBIL score 750 or above to be in the zone to earn benefits. A good credit score can get your reduced interest rates to let you stretch your loan limit and also speedy loan approval with a respectable consideration. Hence if your credit score is lagging behind, it is time to strategize your pre-occupied loan and their repayments.