BASIC HOME LOAN FEATURES
- Home loans usually have higher repayment tenures which vary from 5 years to 30 years.
- The repayment period for a home loan is decided at the time when the applicant applies for the home loan.
- Prepayment of the home loan can also be accomplished. Some of the home loan providers charge a prepayment fee if the applicant prepays a loan while some do not.
- Home buyers should examine the home loans available to find the perfect deal for home loan offers.
- The Equated Monthly Installment (EMI) is the money that the user pays each month to repay the home loan principal amount and the interest amount.
- When calculating the home loan EMI, both the accrued interest and the principal value are taken into account.
- The applicant can work on the home loan EMI calculator to calculate the EMI which they will pay.
- The home loan involves processing fees and other charges related to it such as registration prices, penalty on prepayment, commitment prices and various other costs (documentation/consultation).
TYPES OF HOME LOANS
Home loan is a broad concept, and there are various types of home leans which the user can get. The types of Home Loans are:
- Home purchase loan
- Plot Loans
- Home construction loans
- Home improvement loans
- Home conversion loan
- Home extension loan
HOW TO APPLY FOR THE HOME LOAN
Step1: The applicant first requires filling a form. This can be done manually by marching down to the bank, or they can fill the online application form.
Step2: The application form which is submitted is first viewed and after an application form is considered it is then approved. The bank announces the decision within a few minutes
Step3: The applicant form after getting accepted is then processed, and the money is transferred to the applicant within two working days