Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Gmail
Reserve Bank Of India (RBI)
Reliance
Sensex
New Labour Laws in India
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Home loan basics: Here's what you need to know
Business

Home loan basics: Here's what you need to know

Home loan basics: Here's what you need to know
Written by Shiladitya Ray
Aug 11, 2017, 06:45 am 2 min read
Home loan basics: Here's what you need to know
Credits:

While house prices have been skyrocketing, interest rates on home loans are falling. With increasing prices, and with technology like online applications, it's becoming increasingly common to take home loans. However, the loans are granted only after banks check applicants' credit histories to gauge their borrowing potential. In case you're looking to take a home loan, here are some things to keep in mind.

Legality
Checking the legality of the property you intend to buy

Checking the legality of the property you're planning to buy is of significant importance. Banks will generally refuse to give loans if the house's builder is not on its approval list. Therefore, make sure that the builder is reputed and check if all relevant papers are in place. You can also visit the Real Estate Regulatory Authority's (RERA) website to check builders' profiles.

Down payment
Chalking out a budget

This really need not be stated, but it's important to have a budget chalked out in mind. If you're looking to buy a house, you will generally have to pay 20% of the property's value out of your pocket as down payment. Of course, if you can afford, you can choose to pay more than that. Also, check for added fees.

Eligibility
Eligibility criteria for home loans

All home loan lenders have eligibility criteria which have to be met by applicants. Most important among these is your credit history. Other details like income, age, occupation, available collateral security, margin requirements etc. are also important criteria on which home loan lenders decide potential borrowers.

Interest rate
Take a good look at interest rates

In deciding where to take the loan from, interest rates are an important factor. Lower the interest rate, lower your EMI. More importantly however, banks offer fixed and floating interest rates. The former remains fixed throughout the loan duration, while the latter changes with changes in the banks lending practices.

Insurance
Do consider buying insurance cover

Once a home loan has been taken, the burden of the loan will shift to your family in your absence. Therefore, it is always advisable to cover risks through insurance. Buying a mortgage redemption insurance cover while taking a home loan ensures that the cover amount decreases as you pay more and more of the loan.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Shiladitya Ray
Shiladitya Ray
Mail
Budding social scientist with a keen interest in social studies of science and the sociology of knowledge. Cinephile. Liverpudlian. Metalhead.
Latest
Banking
RERA
Real Estate Regulatory Authority
Latest
#AllAboutFees: Charting Shahid Kapoor's from 'Ishq Vishk' to 'Jersey'
#AllAboutFees: Charting Shahid Kapoor's from 'Ishq Vishk' to 'Jersey' Entertainment
What to expect from 'Stranger Things' Season 5?
What to expect from 'Stranger Things' Season 5? Entertainment
Apple AirPods Pro (2nd generation) to feature Type-C port
Apple AirPods Pro (2nd generation) to feature Type-C port Technology
England vs India, 5th Test: Day 4 report and stats
England vs India, 5th Test: Day 4 report and stats Sports
2022 Wimbledon: Simona Halep beats Paula Badosa, reaches quarter-finals
2022 Wimbledon: Simona Halep beats Paula Badosa, reaches quarter-finals Sports
Banking
ICICI Bank FD interest rates hiked: Check latest rates
ICICI Bank FD interest rates hiked: Check latest rates Business
Some banking rules that will change from next month (October)
Some banking rules that will change from next month (October) Business
Banks closed up to 21 days in October: Check list
Banks closed up to 21 days in October: Check list Business
#NewsBytesExclusive: How the Russian start-up JuicyScore strategizes credit fraud prevention
#NewsBytesExclusive: How the Russian start-up JuicyScore strategizes credit fraud prevention Inspirational
Two-day bank strike from today: These services would be affected
Two-day bank strike from today: These services would be affected Business
More News
RERA
NITI Aayog CEO says 'too many reforms' behind economic slowdown
NITI Aayog CEO says 'too many reforms' behind economic slowdown Business
RERA: Center to hold workshop with home-buyers, banks on November-15
RERA: Center to hold workshop with home-buyers, banks on November-15 India
RTI applicant in MP asked to pay GST for information
RTI applicant in MP asked to pay GST for information India
Here's your 'Weekly Industry Insight' for all your stock decisions
Here's your 'Weekly Industry Insight' for all your stock decisions Business
Center to urge WB Govt to switch over to RERA
Center to urge WB Govt to switch over to RERA India
More News
Real Estate Regulatory Authority
Soon, builders may lose MHADA contract if project is delayed
Soon, builders may lose MHADA contract if project is delayed India
Thanks to Mumbai's sky-high prices, 1.09 lakh apartments lying unsold
Thanks to Mumbai's sky-high prices, 1.09 lakh apartments lying unsold Mumbai
Home loan basics: Here's what you need to know
Home loan basics: Here's what you need to know India
More News
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022