New House Loan,Low Income House Loan,House Loan Rate,Bankruptcy House Loan

House Loan Interest Rate,Refinance House Loan,Cheap House Loan House Mortgage Loan,House Construction Loan,House Building Loan

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

House Loan

House Loan

“A loan is a sum which a person borrows from a financial institution or may be from other type of lender with an agreement to pay back the full amount with addition of some percent of interest over a mentioned period of time. Loans are usually guaranteed with assets like a vehicle or home. Until the loan is paid off, the lender will have a lien on these assets and has the right to repossess them if the terms of the loan are not met. ’’


"Housing Loans are the loans especially made for purchase, construction, renovation, extension of residential accommodation. House loan also includes fencing, landscaping, site preparation and fixtures such as Hot Water Systems, built in furniture, and fixed floor covering. The overall objective of every house loan is to reassure safety in Terms of security, ability to repay and profitability to the Bank.”
“In Traditional Sense the term house loan means finance for buying or may be for modifying a property.”

As per the result of several experiments, this has been made out that the value of house and a land never decreases. Therefore, when someone goes for house loan they might face a problem of high interest rate. And the basic reason for higher interest rate is our growing economy. However there are lots of plus points that apart of higher interest rates also people are looking forward for house loan. And this is because they realize the value of a house in coming future and they want to secure themselves.

In house loan this is a very common saying that,” The more you will be prepared to bear a risk and the more you get involved in financial planning, the more suitable and cheaper house loan you will find.”

There are certain questions which grabs the mind of a house loan seeker, they are:
• The percent of risk involved?
• What is the maximum amount which I can borrow?
• From where I can avail house loan?
• How much time does it take to get an application processed and the loan sanctioned?
• What is the mode for repayment of loan?
• How the loan eligibility is determined?
• What are the documents required?

Well the solution of all these questions depends upon the policy of different companies. But through our continuous research we were able to find out the basic solution to these problems. If a person is looking for house loan, he / she may apply to any bank or some Housing Finance Company. And as per the house loan amount is concerned House loans are generally provided in the range of 75% - 85% of the asset value. The amount of house loan varies from institution to institution.

And the eligibility of a person is determined by repayment capacity based on income, age, qualification, number of dependents, spouse income, assets, liabilities, stability and continuity of occupation and saving history of the applicant. Regarding mode of payment again depends on different company policy.

And the common documents required at the pre-approval stage are:
• Proof of Age
• Copy of Bank A/C statements for the last 6 months
• Copy of latest credit card statement
• Passport size photograph
• Signature verification from the borrower’s banker

If salaried person:
• Salary and TDS certificate
• Latest pay slip
• Letter from employer

If self-employed person:
• Business track record
• Copy of audited financial statements of the last 2 years
• Latest income tax return

Types of house loan:
• Home extension loan
• Home improvement loan
• Land loan
• Home equity loan
• Converting high interest housing loan into low interest housing loan
• Home construction loan
• Home conversion loan
• Land purchase loan
• Bridge loan
• Refinance loan


Well it is good to avail house loans, because house loans offer a number of added advantages to their customers.

One of the most important benefits of taking a house loan are the choice of interest rate that is allowed on the house loan. Fixed and variable interest rates are the options available for house loan. Many financiers also offer home improvement loans at the same interest rate as they offer the house loans. Most of the prevailing interest rates fall in the range of 7.75% to 8.75%. There is usually a processing fee of 1.00% to 2.00% also that is involved.

The other benefit of taking a house loan is the security that is to be provided. The benefit is that you can use the property that is currently being constructed as the security for the house loans. Of course, most banks and finance companies do not finance more than 85% of the cost of the property mortgaged.

Perhaps the benefit that is most used is that of the tax benefit. The interest that is paid on house loans is deductible from the annual value resulting in a lower taxable income. The house loan market in India has grown at a rapid and alarming rate from last four years, which in lieu have increased the value of house loan.


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