Home loans are also known as mortgages, use the borrower’s home for collateral. This home can, however, be a single-family house up to a four-unit property, as well as a cooperative unit. Lenders thus fund home loans and then process them.
The maximum loan amount which any borrower can ask for in a home loan is 50%-80% of the property and the term of the loan is from 5 to 15 years also comparatively lower interest rates and there is greater credit eligibility.
The key advantage of paying home loan EMI through ECS is that there's no signature mismatch risk for cheque bouncing or the other technical issue. Note heavy cheque bouncing charges are charged by the banks even for technical bounce and thus, it's advisable to avoid this risk by availing of ECS mode of debit.
A basic method is applied for calculating the EMI. It, bigger the loan amount, the higher are going to be the EMI, smaller the loan, lower the EMI. Larger the loan tenure, the smaller the EMI.
To buy a new home you're taking a property loan or home loan. The developer of the property is paid the value of the house consistent with the payment plan by the lender. the borrower successively pays EMIs which is cover the tenure of the loan.
• Your income, savings, debt obligations are considered.
• Cost/value of the property against which you would like loan are considered
• Your track record for other loans, credit cards repayments are considered