As you read this, many people are already applying for their home loans to fund their dream homes.
People find the option of the home loan viable to get and repay over a longer tenure in the form of smaller EMIs. Since it is a secured debt, the home loan interest rates are also lower.
Let’s check out the reasons why it is a good idea to fulfil your dream of having your home using the housing loan!
Higher loan amount
The home loan amount is higher offered by most of the banks and NBFCs if you have the required eligibility. If you are young with more workable years left, then lenders can sanction your loan request for a large amount. You may get the approval for an amount ranging up to Rs.3.5 crore by leading lenders in India.
Lower rate of interest
When you avail the home loan, then you don’t need to worry about higher interest charges as compared to personal loans. It is because it is a secured debt and comes with no collateral.
Longer tenure
The home loan comes with a longer tenure of up to 20 years. It means that you can stretch the money over the longer tenure and pay smaller EMIs. You can also make prepayments during the longer tenure and reduce the outgo. It is if you are worried about paying higher interest in selecting the longer tenure.
Top up loan
If you are paying increased home loan EMIs for years, then you can switch the account to a lender offering a lower rate. This facility is called the home loan balance transfer. When you make the switch, then it also becomes possible to access the top up loan. The top up loan comes with a large amount that you can use for any purposes. Its rate of interest and the duration are similar to that of your existing loan account.
With so much going for home loans, there is no surprise that so many people apply for it to fulfil their wishes of having their own homes.
