Wednesday, October 10, 2012

Sources of Home Loans in India


Today’s every person wants to have their own house. That is why the demand of home loan increasing day by day. There are various home loan providers in India that provides loan at the best rates. The home loan lenders in India are regulated by the government, i.e. Reserve bank of India. RBI decides the interest rates on any loans that provide by different banks and lending institutions to the person. Person should take the home loan extremely carefully.

Today the market of reasonable housing is rising fast. Similarly, various customers who want to buy home have increased.  Most of the youth who are getting decent salary also want to buy their own house. Home loan today is a boom in the market. There are few things customer should be keeps in mind while applying for home loan.
Following are the Sources that provide the best Home Loan:

1. The lending institutions that offers unnecessary hikes on interest rates and do not follow the rules of RBI are the poor source of home loan. All banks whether it is housing finance companies, private companies, national companies or institutions charge interest rates according to the RBI rules. The lending institutions or banks increase the interest rates immediately at the RBI increase the rates. Banks only decrease the interest rates when RBI decreases the rate of interest. Person has to repay the loan in EMIs.

2. Several banks or lending institutions provide rate of interest below the current market rate; just to impress the new home loan seekers, while existing customers repay the loan at the same interest rates.

3. Various lenders provide the scheme, i.e. conversion of rate of interest. In this plan, banks give provision to the existing customers that, they can avail rate of interest, which is offered by RBI. People have to pay charges for it. That is around 0.5 to 3% of the total loan amount.

4. Banks also charge prepayment charges on the balance transfer. If a person transfers their balance from one bank to another, person pays the charges for it.

5. Person can also face some problems at the time when the person transfer balance from one bank to another. Sometimes banks misplace their property documents.
Sources of Home loan:

Person can get a loan from various banks or lending institutions such as PNB, SBI, HDFC, AXIS Bank, IDBI Home Loan , LIC housing finance, CANARA Bank and Standard Chartered.

There are some other lending institutions that provide loans are: Fullerton, India Bulls, DHFL and Reliance.