Meghna Arora asked:


The prospect of having a home is every individual’s desire and dream. An individual spends his entire savings only for this reason. But with the entire savings purchasing a home is not possible. It may look easy for the one who are affluent but for some other individual, arranging the necessary finance is a daunting task. With the upward tilt in the prices of real estate, it becomes even more difficult. Now, to assist borrowers in buying their prospective homes, lenders and banking institutions are providing New Home loans.

New home loans have got popularized within a short span of time. At present it is the most sought after loan by borrowers who are in the process of buying a new home. . The loan is worthy of its name. It is estimated that transaction worth billions of pounds has taken place from banking and financial institutions and the numbers are increasing by the day. New home loans are of two types. They are –

• Fixed rate new home loan

• Variable rate new home loan.

Fixed rate new home loan: The rates of interest are fixed in the case of fixed rate new home loans. If you avail the loan, the rate of interest will be kept same for the whole repayment period. Even if the interest rate goes up, you have the benefit to pay the same interest rate.

Variable rate new home loan: In the case of variable rate new home loan, the interest rate you get is initially lower. Depending on the fluctuations on the market, if the interest rate increases, you have to pay the new interest rate.

New home loan is designed such that you get the loan at affordable rates of interest. The growing popularity of the loan has compelled the lenders to provide new home loans through online. The online mode helps the borrower to access the loan in a fast paced manner. By just clicking a few buttons and sitting in your home or office, you can access the loan.

New home loans beckon a ray of hope for borrowers who cannot afford to buy a home on their means.



Tamara

Addi asked:


 

Most of us cannot afford to build our own homes. This may be due to scarce financial resources or unavailability of land or the absence of a desire to live in an owned home. Whatever the reason may be, there is no denying the fact that an owned home is always better than a rented accommodation since it saves valuable finances and is a valuable long-term investment by all standards.

In context of the Indian housing market, it can be clearly said that the home loan borrowers are happy customers these days, all thanks to the customer-friendly terms, conditions and plans. The reduced home loan EMIs due to intensified competition have opened the doors of personal prosperity and asset accumulation for many home loan aspirants these days.

Due to the emergence of new market players in the Indian housing loan market, the interests of home loan aspirants have blossomed to a considerable extent. There is a remarkable difference in the Indian loan market of yesteryears and today. The changing market trends and attitudes of the financial institutions as well as the other lenders have bolstered the overall growth and prosperity of the Indian housing loan market.

The industry and customer-friendly guidelines issued by the Reserve Bank Of India (RBI) have also strengthened the market norms and attitude. If we have a close look at the home loan EMIs rates for the last few years, we can easily conclude that the reformative measures introduced by many financial institutions and the Indian government in all these years have contributed significantly in an attempt to grab the attention of home loan aspirants. The home loan EMIs have helped the middle and low-class income earners to start thinking about their own homes. This is evident from the fact that in the last two years, the majority of customers asking and/or availing the home loans belonged to these economic classes. The option of making an equated monthly instalment rather than making a lump-sum payment obviously encourage more home loan aspirants.

Some of the most eminent Indian financial institutions such as State Bank of India, HDFC, ICICI, Standard Chartered and Punjab National Bank etc. have opened their hands to greet the home loan aspirants. The plans and policies of these banks have motivated the working class of the country to strive for an owned home rather than living the life of misery in rented or PG accommodation.

A prospective home loan borrower must consider certain things before starting the search for a lender. He must be ready to spend some of his valuable time in understanding the present home loan market trends as that will help him to get effective bargains without losing his focus. The advice of a financial expert, who is dealing in the arena of home loans, is highly recommended since he can offer a complete insight into the complexities of the housing loan segment.

Home loan in India can be taken by any individual who is of the age of 18 years and holds the citizenship of India. Some of the banks are also offering the home loans to NRIs, subject to fulfilment of certain pre-defined conditions. The loan applicant must have a regular source of income and preferably must be enjoying a good credit rating. He must have a valid identity and residence proof such as Government ID card, PAN card, passport, voter ID card and bank statement with address etc. The loan formalities are quite easy, making it pretty easy for the loan aspirants to obtain such loans.

Thus, it can be easily said that the reducing home loan EMIs have surely helped the Indian masses to think beyond the self-defined limits.



Brandon