The real estate sector of India is valued at 4.2 billion US dollars as of 2018 and is projected to reach 1 trillion US dollars by 2025. To realize this projection, the best home loans in India are provided with several features and benefits to induce demand.
Since home loans possess a financial liability for a relatively long period, there are specific parameters you should keep in mind while opting for it.
1. Interest Rates
Choosing a lender who offers the lowest home loan interest rate is not optimal in every scenario. The type of interest, whether fixed or floating, also has to be kept in mind.
2. Loan Tenure
Choosing an appropriate loan tenor is crucial as it determines the period during which you have to bear the liability of monthly EMI payments. While shorter tenors have an advantage of a short term burden, longer tenors ensure lower EMI payments to be made.
3. Other Charges
There are several additional expenses which have to be incurred while applying for a home loan from any financial institution. Processing fees for home loan ranging from 0.5-1% of the principal loan amount, administrative charges, prepayment or foreclosure charges, etc. amount to a considerable value. These fees have to be paid by borrowers themselves, and no credit can be availed for this amount.
While choosing the best home loan in India, looking for ones with low-interest rates is not sufficient for choosing an appropriate lender. There are several other factors such as the ones mentioned above that crucially affect this process.
