Mr. P.S Sharma had always dreamt of owning his own house in the ultra modern locality of South Delhi. But like most of us, he was unaware of the basics of a Home Loan. He did some research in prevailing situation and came up with some interesting insights.
Undoubtedly, owning a home is the biggest dream of an average family and therefore, it goes beyond monetary consideration. In the current scenario, it has gained huge demand, which in turns has aroused cut throat competition between public and private players.
A Quick look at Home Loan Providers in India
There are 2 types of lenders currently existing in the market-
(1) Banks= Like ICICI Bank, State Bank of India, Punjab National Bank and many more.
(2) Housing Finance Companies= Like LIC Housing Finance, Dewan Housing Finance, Dewan Housing Finance and many more.
Different types of Home Loan rates.
Fixed Home Loan rates- As the name itself suggests, it remains same or fixed throughout the loan tenure, irrespective of the changing loan market conditions. Such loans are comparatively more costly and are therefore offered by only some lenders in the Credit0 marketplace.
Resettable Fixed Rates- Almost all Fixed Rates available in the market are of this kind. Under this, interest rate is fixed for some period of time, say 2 or 5 years and is then reset again for other 2 or 5 years and so on.
Floating Rate: As the name itself connotes, floating rate is changeable with respect to the rates prevailing in the market. Usually banks are free to decide their own methodology for fixing their base rate. India's apex bank, Reserve Bank of India(RBI) is free to review this at any point of time.
Some lesser known facts
Q.1 Can I sell my house, even if the loan in respect of it is outstanding?
Ans. Yes, by taking the consent of the bank, one can sell the property. For e.g, if you have taken a loan of Rs.5 lakh for the tenure of 10 years and you have paid Rs 4 lakh but now you want to sell your house. In this case either you will pay the full amount or the buyer of your house will pay the remaining balance, provided he is also taking a loan from the same bank for purchasing the above mentioned house.
Q.2 Is it feasible for a single lady to get a loan against her home.?
Ans. Yes, it is possible. Few years back, various banks were hesitant to grant a loan to a single woman, fearing a loss in income after her wedding. But now double salary families have become a norm and as a result varied lenders are granting loans to single ladies. Banks have now come up with a special loan scheme for ladies.
Q.3 Do Banks provide home loan for an apartment that I want to buy in overseas?
Ans. No, presently there is no such provider in India who provides loan for buying properties abroad. The main reasons being operational problems in verification of property, distinct legal structure and disbursement.
Q.4 Is it possible to get 2 Home Loans against 2 different properties.
Ans. Yes, you can get as many loans against varied properties as your income and repayment capacity permits.
Q.5 I am a NRI(Non Resident Indian), can I apply for Home loan in India?
Ans. Yes, a NRI can get a loan to buy a property in India but the disbursement and other procedures followed are different then the procedures followed to grant home loans to Indian citizens.
Mr. P.S Sharma had always dreamt of owning his own house in the ultra modern locality of South Delhi. But like most of us, he was unaware of the basics of a Home Loan. He did some research in prevailing situation and came up with some interesting insights.
Undoubtedly, owning a home is the biggest dream of an average family and therefore, it goes beyond monetary consideration. In the current scenario, it has gained huge demand, which in turns has aroused cut throat competition between public and private players.
A Quick look at Home Loan Providers in India
There are 2 types of lenders currently existing in the market-
(1) Banks= Like ICICI Bank, State Bank of India, Punjab National Bank and many more.
(2) Housing Finance Companies= Like LIC Housing Finance, Dewan Housing Finance, Dewan Housing Finance and many more.
Different types of Home Loan rates.
Fixed Home Loan rates- As the name itself suggests, it remains same or fixed throughout the loan tenure, irrespective of the changing loan market conditions. Such loans are comparatively more costly and are therefore offered by only some lenders in the Credit0 marketplace.
Resettable Fixed Rates- Almost all Fixed Rates available in the market are of this kind. Under this, interest rate is fixed for some period of time, say 2 or 5 years and is then reset again for other 2 or 5 years and so on.
Floating Rate: As the name itself connotes, floating rate is changeable with respect to the rates prevailing in the market. Usually banks are free to decide their own methodology for fixing their base rate. India's apex bank, Reserve Bank of India(RBI) is free to review this at any point of time.
Some lesser known facts
Q.1 Can I sell my house, even if the loan in respect of it is outstanding?
Ans. Yes, by taking the consent of the bank, one can sell the property. For e.g, if you have taken a loan of Rs.5 lakh for the tenure of 10 years and you have paid Rs 4 lakh but now you want to sell your house. In this case either you will pay the full amount or the buyer of your house will pay the remaining balance, provided he is also taking a loan from the same bank for purchasing the above mentioned house.
Q.2 Is it feasible for a single lady to get a loan against her home.?
Ans. Yes, it is possible. Few years back, various banks were hesitant to grant a loan to a single woman, fearing a loss in income after her wedding. But now double salary families have become a norm and as a result varied lenders are granting loans to single ladies. Banks have now come up with a special loan scheme for ladies.
Q.3 Do Banks provide home loan for an apartment that I want to buy in overseas?
Ans. No, presently there is no such provider in India who provides loan for buying properties abroad. The main reasons being operational problems in verification of property, distinct legal structure and disbursement.
Q.4 Is it possible to get 2 Home Loans against 2 different properties.
Ans. Yes, you can get as many loans against varied properties as your income and repayment capacity permits.
Q.5 I am a NRI(Non Resident Indian), can I apply for Home loan in India?
Ans. Yes, a NRI can get a loan to buy a property in India but the disbursement and other procedures followed are different then the procedures followed to grant home loans to Indian citizens.
No comments:
Post a Comment