There are a lot of people out there who would love to own a house, but are not aware of the right housing loans schemes, housing loan interest rates in India and thus shy away from making progress.
Owing a house is a lifetime dream and thus it must be something that should be given priority above others. Not that people do not think of it the lack is in efforts and time devoted to find out the required information that would put the powers in the one desiring a house.
Quick look at the options
Housing loans in India are provided by typically two types of lenders:
- Housing companies: There are many financial companies that provide housing loan; these companies are LIC Housing Finance, HUDCO, DHFL etc.
- Banks: All major public and private banks provide housing loans to its customers. SBI, IDBI, HDFC, PNB are just to name a few.
The home loans are available with ease to those who are eligible. The credit rating plays an important role in ensuring that someone is eligible for a loan or not. The next important question is the interest rates at which these housing loans are provided. The housing loan interest rates in India are available in the following type:
Fixed Home loan rates: the interest rates on these loans are fixed throughout the tenure of the loan. The market changes and prevalent current rates do not affect the already decided interest rates. These loans are comparatively costly than others, but since there is no risk they are desired by many.
Floating Interest rate: The interest rates are dependent on the current market rates. According to the RBI guidelines, the interest rates are subject to changes and these changes affect the loan interest rate.
Resettable fixed rate: These interest rates are fixed for a period say 2 or 5 years and then the rates are changed according to the needs for the next 2 or 5 years and so on. This is applicable on loans that are for larger durations. Home loans for sure fall under that category.
The housing loans are easy and desired way in making the dream of owning a house true. There is no other way one can think of living in a dream house. Most people think of saving desired amount but why wait a lifetime when the avenues are present right now wait.