Numerous financial institutions in India offer home loans, which makes it difficult to choose the best option. It is vital for borrowers to know the different aspects of such housing loans in India to choose the best option for them.
The numerous features of such loans which should be checked and compared are discussed below –
Interest rate
The interest rate is a crucial factor while choosing a home loan. Borrowers availing housing loans should check the interest rate offered by different financial institutions along with additional applicable charges like statement charges, processing fees, etc.
Type of interest
There are two types of interest rates for a home loan from which a borrower can choose while applying for a home loan –
- Fixed-rate of interest.
- Floating rates of interest.
In the case of the former, the rate of interest does not change over the repayment tenor of a loan. Consequently, it is easier to plan the financials of a borrower since the EMI amount remains unchanged.
In the case of floating rates of interest, the changes are subject to market fluctuations. As a result, the EMI amount can also go down or rise.
Loan amount
The loan amount offered by a financial institution is also a factor to be considered. Potential borrowers should plan and estimate their expenses in advance. Once they have their exact need chalked out, they must check for financial companies who provide that amount of financing.
Borrowers should check all these necessary features and compare them before finalising on their home loans.
