In recent years, the demand for housing has registered a steady growth due to the culmination of several factors. Consequently, it has led to a significant increase in demand for home loans, as more individuals are opting for them to meet their housing finance requirements. Hence, borrowers should know these factors properly to determine the best time to purchase a property. These factors include -
Competitive interest rates – Government initiatives such as Pradhan Mantri Awas Yojana has made it possible for individuals from economically weaker section to opt for home loans at subsidised interest rates. Moreover, government schemes such as these also provide an array of benefits to senior citizens, women and members from marginal groups.
RBI policies such as linking the interest rates to external benchmarks to bring in more transparency and reducing repo rates have also led to current home loan interest rates, which are encouraging more individuals to avail home loans.
Stagnancy in real estate sector–With the real estate sector experiencing limited growth at present, property prices have also become stagnant. Consequently, home loans have become more affordable for prospective buyers.
Use of technology – The use of technology in the financial sector has made it easier for borrowers to avail a home loan. Individuals can now check for their home loan eligibility and apply for the same online by visiting their lending institution’s official website. Additionally, one can also check the loan amount that they are eligible for using online tools like home loan EMI calculator.
Also Read: Ways to Reduce Your Home Loan Burden
However, before applying for a home loan in India, borrowers should check the eligibility criteria specified by the lending institution to avoid rejections.
