Housing Loans
Today everyone wishes to possess a self owned house. Some people can afford to buy house on their own but majority of people prefer taking loans either from banks or financial institutions. There are many banks and financial institutions that are offering easy loans for purchasing houses and even construction of same. One may choose a bank or any financial institution on the basis of the banks charging lesser rate of interest. There are certain terms and conditions which should be followed before assigning the loan to a person. The banks or financial institutions shall also ask the person to submit some documents which are necessary in order to avail such loan. The basic reason for asking these documents is to authenticate the identity of the person who is in need of a loan.
There are various options for tenure of the loan like three years, five years, ten years and so on. These categories differ from one bank to the other. One may choose any of these categories which is suitable to that person.
EMI's which stands for Equated Monthly Installment varies depending upon the tenure one chooses. The more the number of years, the EMI will decrease. It means that the monthly payment of installments decreases as the number of years increase. If the number of years is less, the EMI will definitely increase. The main purpose of the bank is to get back the loan amount along with the interest.
It is very necessary to first calculate the price of the property which one wants to buy. Next important thing is to check that the property which one is willing to buy does not have any other legal obligations which are to be satisfied. Best thing is to get a No objection Certificate which explains that the particular property does not have any other liabilities to be paid. One is asked to submit relevant documents as required by the bank or financial institution along with application form before granting of housing loan. Residential address proof and Income proof are among the relevant documents asked by the bank officials. Banks also confirm the organization or the company where the person asking for loan is employed. These banks also confirm the residential address of the person.
After all the conditions and requirements of bank are fulfilled bank issues a sanction letter which has all the details in it. These loan details include the actual loan amount, the rate of interest charged, tenure of the loan as well as the mode of repaying the loan amount. It is also the condition of the bank and financial institution to mortgage the original documents related to the property that is being purchased. The reason bank or financial institutions keep these documents are just for the security purpose. These documents stay in safe custody of the bank till the entire loan amount is completely repaid. These documents are also sent for scrutiny in the regular audit of the banks. After visiting the property and ensuring everything the loan is finally disbursed.
Thus, housing loans are just like a blessing for those who are dreaming to have self owned house. Housing loans helps in converting dreams into reality. - 23196
There are various options for tenure of the loan like three years, five years, ten years and so on. These categories differ from one bank to the other. One may choose any of these categories which is suitable to that person.
EMI's which stands for Equated Monthly Installment varies depending upon the tenure one chooses. The more the number of years, the EMI will decrease. It means that the monthly payment of installments decreases as the number of years increase. If the number of years is less, the EMI will definitely increase. The main purpose of the bank is to get back the loan amount along with the interest.
It is very necessary to first calculate the price of the property which one wants to buy. Next important thing is to check that the property which one is willing to buy does not have any other legal obligations which are to be satisfied. Best thing is to get a No objection Certificate which explains that the particular property does not have any other liabilities to be paid. One is asked to submit relevant documents as required by the bank or financial institution along with application form before granting of housing loan. Residential address proof and Income proof are among the relevant documents asked by the bank officials. Banks also confirm the organization or the company where the person asking for loan is employed. These banks also confirm the residential address of the person.
After all the conditions and requirements of bank are fulfilled bank issues a sanction letter which has all the details in it. These loan details include the actual loan amount, the rate of interest charged, tenure of the loan as well as the mode of repaying the loan amount. It is also the condition of the bank and financial institution to mortgage the original documents related to the property that is being purchased. The reason bank or financial institutions keep these documents are just for the security purpose. These documents stay in safe custody of the bank till the entire loan amount is completely repaid. These documents are also sent for scrutiny in the regular audit of the banks. After visiting the property and ensuring everything the loan is finally disbursed.
Thus, housing loans are just like a blessing for those who are dreaming to have self owned house. Housing loans helps in converting dreams into reality. - 23196
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posted by X - Men @ 4:53 AM
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