House loan- An Answer for Your Financial Need

Are you planning to buy a home but worried about the funds then you can be relaxed as there are many banks and housing finance companies in India that can fulfil your needs. Today there are a range of lenders that cover housing needs of almost all kinds of borrowers. But to avail such a loan one needs to meet certain terms and conditions that are laid down by the lender. It helps the borrower to smoothen the approval process of a loan.

House loan can be availed for a variety of purposes ranging all the way from buying a new house to renovation of an existing one, construction of new home and for even purchasing a piece of land. These loans can also be taken for paying the stamp duty while purchasing the house. They are considered to be the best option for overcoming any financial problem that may arise at the time of purchase or other related issue.

However you should always remember that as far as the loan amount is concerned, it mainly depends on your ability and willingness to repay. Therefore a variety of documents play a vital role in determining your repayment capacity that further decides your loan amount to be sanctioned.

Usually your ability to repay is determined by your current income and the main documents that are required at the time of applying for a loan include your source of income, employment records, identity and residential proof, education qualification certificates and bank statements of past six months.

If one fails to provide these documents then it may be get difficult for him to avail a loan but the display of these documents make it easier for a borrower to avail loans at varied rates of interest charged by different companies. All lenders in the market offer different rates on their housing loans. It is always noticed that the public sector banks charge lower rate of interest as compared to the private lenders. Therefore it is always advisable to make an extensive comparison of rates offered in the market before finalizing on the deal.

In India the main source of House loan is considered to be the public sector banks but now there are ample of private housing finance companies that will extend credit under all circumstances. However there may some difference in the rates charged by both types of lenders. Public sector banks are considered to be a cheaper source in terms of both interest rates and additional charges on the loan processing but private lender may lenient in their lending norms.

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