If you are thinking of purchasing an apartment in a commercial hub like Ghaziabad, then you must be prepared to make an extensive monetary investment. Moreover, whether you want to purchase a 1BHK or a villa or an independent floor, it is essential for you to evaluate and ensure that the investment is worthwhile. Additionally, in order to purchase a residential property, it is advisable that you obtain a suitable home loan. Some of the essential features of home loans and the basic eligibility criteria for individuals seeking home loans have been discussed below.
What are Home Loans?
Home loans are granted by banks and financial institutions to individuals who want to purchase a residential property. However, before a home loan is granted, the bank or the financial institution will carefully vet the individual’s credit score and evaluate his or her ability to repay the loan. Thus, it is essential that you fulfill the financial requirements and eligibility criteria as designated by the individual banks and financial institutions before you apply for a home loan. Certain factors that you must know about home loans are as follows:
- Home loans are granted by banks and financial institutions at a fixed or a floating rate of interest. The interest rate will be decided when the loan is sanctioned.
- You will have to repay a certain amount of money every month, for a fixed period of time in lieu of the home loan. This payment is known as the Equated Monthly Instalment (EMI).
- The home loan will be sanctioned only after you are able to prove your ability to repay the loan within the designated time period. For that, you will have to submit your salary slips, if you are a company employee, and bank statements, if you are self-employed.
Thus, it is essential to understand the basic features of home loans before applying for one. You can also check out the various national housing schemes, like the Pradhan Mantri Yojana Scheme, to see if you are eligible for the same. Moreover, it is essential that you purchase a residential property from a reputed real estate development firm and ensure that the project is approved by banks and financial institutions.