Home Loan
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What Is Home Loan..?
A Home Loan is finance provided by a bank or a financial institution to enable its customers to purchase or construct or improve their homes.
Why Home Loan
Buying a home could be one of the biggest achievements of a person’s life. In most cases, it takes an entire lifespan to fulfil the dream of purchasing one’s own home. Selecting the ideal property involves a lot of research and planning. Arranging funds is probably the toughest and the trickiest part of the process.
You could dip into your savings for the entire payment or decide to get a Home Loan at a good interest rate.
A decade or so earlier, borrowing from a bank used to be a cumbersome process but today financial institutions have simplified the entire Home Loan application and disbursement process. All leading financial institutions offer Home Loans with attractive interest rates, flexible repayment periods, quick turnaround times and unique product features.
Before finalising on a lender, one must understand the intricacies of a Home Loan.
How should I compare what each bank is offering me? Is there anything in the fine print I should be worried about?
VIVA can help you get the ideal Home Loan – Let’s Seal the Deal!
Benifits Of Availing A Home Loan
- An accomplishment – Every individual dreams of owning a house in their name. A home loan allows you to accomplish this feat and realize your dreams. This is one of the biggest financial investments you make in your lifetime and can therefore be considered an accomplishment.
- Capital appreciation- Land is an appreciating asset in most cases. Construction costs have also increased over the years. As rents get more expensive with inflation, investing in your own house can shield you from inflation.
- Benefits in interest rate- In the 90’s, banks used to charge up to 18% interest on loans. Today, you are able to get a home loan at 8.40% annually. The decrease in the interest rates coupled with capital appreciation makes it a dual benefit plan.
- Tax benefits- The Government of India has played the biggest role in boosting the home loan sector. As per Section 24B of the Income Tax Act 1961, you get a deduction of 2 Lakhs towards repayment of interest towards loans availed for purchase/construction of house (if you or your family is living in the house). At the same time, Section 80CC read with Section 80CCE of the Income Tax Act 1961 allows for a tax deduction up to 5 Lakhs on repayment of principal amount of the home loan. This is one of the greatest incentives for people to opt for a home loan, even if you are able to afford to buy your house with your savings.
Why Apply For A home loan With VIVA Financial Advisor Pvt. Ltd.
Applying for a Home Loan may seem like a daunting task and information on Home Loan can be confusing as each bank will have its individual Home Loan scheme and interest rate. It can become difficult for you to compare the individual rates and make an informed decision.
VIVA can help you procure all the information at a single place whereby you can compare the different rates on a single screen. In addition, MMM can help you seal the best deal depending on your demographics, income, and repaying capacity. They have over 8 years’ experience to guide you about various aspects of your Home Loan. This includes helping you opt for the bank that provides the following:
- The lowest rate of interest
- Lowest processing fees
- Easy documentation
- Fastest loan turnaround time
- Terms of foreclosures and pre-payment of Home Loan instalments
- Transaction charges such as the creation of mortgage and payment of stamp duty
VIVA are specialists in this field and can help you to:
- Assess your personal profile
- Analyse your previous repayment record
- Understand the various policies of the banks financing home loans
- Understand the fine print, especially in case of offers that seem overtly attractive
VIVA can help you realize your dream of acquiring your own house.
How Do I Apply for a Home Loan What Is The Home Loan Application Procedure
What are the different Types of home loan..?
- Purchase of a flat in an apartment complex – Banks finance their customers to buy flats in residential complexes. Here you have the concept of an Undivided Share (UDS) in the land.
- Purchase of individual house -This is similar to the type of Home Loan described above however there is no concept of ownership of UDS. The entire land belongs to the borrower. Naturally, such houses have a better resale value.
- Purchase of Land/Plot -Banks finance their customers for the purchase of vacant plot or land for subsequent construction of house. Usually, banks stipulate that the construction of the house should begin within one year of purchase of land for the loan to be treated as a Home Loan.
- Construction of a house on own land/land purchased out of bank finance -You can avail a loan for constructing your house on your land. Banks have their methods of determining the cost of construction. Naturally, you need to obtain the requisite permission from the local municipal authorities for constructing your house on the land. You need to have an approved plan as well.
- Home improvement/extension -You can approach a bank for financing home improvement or for extending the house. In the latter case, you need to have the requisite approvals and plans in place.
- Balance Transfer -This facility allows you to switch over your Home Loan from one bank to the other. If you have a high-interest Home Loan, availing this facility can be useful. You could transfer your outstanding loan amount to another lender at low interest rate, thus saving on interest cost.