Reasons to opt for this Housing Loan in this Diwali season

If you are planning to buy a house then the festive season is the right time to loosen your purse strings. Diwali is considered an auspicious time to buy a new thing like a new house. Buying a home is not an easy time task because it requires a huge investment. Diwali is the best time to buy a new home because most of the banks and NBFCs offers Home Loan on various attractive offers like a lower rate of interest, waive off processing fees, longer tenure and number of EMI options and so on.

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On the occasion of Diwali, salaried people got bonuses, incentives etc and most of the people save in the preceding months in order to be splurge during festivals. People believe the Diwali deemed auspicious for buying a property.  It is not enough to know the best time to buy a home and take the plunge with a herd. The more important thing is to know how to clinch the best deal at the most opportune time and it will be suggestable to apply for a home loan online as it will save your precious time.

Builders also offer attractive offer during Diwali because many new projects are launched during Diwali with a number of attractive offers. So, these are the reasons which suggest that the Diwali is the best time to a new home by taking a home loan.

 

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Which One is Better: Fixed & FLoating Home Loan Rates

Getting a home loan has become very easy nowadays. However, it involves a series of decision which can have an impact on your life for years or even decades. The first and foremost thing that will bother you is whether to go for a fixed interest rate or floating interest rate. A fixed home loan interest rate remains the same throughout the loan tenure, whereas a floating rate keeps on changing as per market conditions.

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A fixed interest rate is a good option for those who are good at budgeting and want a fixed repayment schedule. One of the major disadvantages of fixed interest rates is that it is usually 0.5-2.5% points higher than the floating rate home loan. On the other hand, a floating rate home loan is cheaper than the fixed interest rates. But, you can only benefit by choosing a floating rate home loan if the interest rate does not exceed 11.5%. You also have the option to choose semi-fixed interest rate. In this kind of loan, the interest rate remains fixed for the first few years and then it changes to a floating rate. The type of interest rate you choose depends on several factors. So, if you expect interest rates to increase in the future, you should opt for a fixed interest rate home loan. If rates have been on the rise over the past few years and the prediction is for a fall in loan interest rates soon, then you must opt for floating interest rate to reap the benefits.

How to Repay your home loan faster

Buying a home is a dream for many of us, but due to the high prices, only a few can afford to pay such a whopping amount. In such situations, buyers turn to banks for home loans. However, opting for a house loan is not that easy as the EMIs last for at least a decade and add to the burden for a majority.  But, don’t worry, we have listed a few tips that can help you to repay your home loan faster. You can opt for a higher EMI. It will help to reduce the loan tenure which means that the total interest that you’re supposed to pay to the lender also goes down. Further, home loan buyers also have the option to prepay the entire or part of the outstanding loan amount. Windfalls like bonus or maturity proceeds from insurance policies should be used to prepay a part of the home loan from time to time.

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Next option is that you can opt for a balance transfer. Under this option, you can transfer the entire outstanding loan amount to another lender at a lower rate of interest and other better terms and conditions. Lastly, you also have the option to maximize the down payment. Making a higher down payment when obtaining a home loan can reduce the principal amount. A lower principal amount means lower interest and EMI payments. So, in case you are struggling with debt-burden, take into account the above-mentioned steps to reduce your home loan interest rate burden. Also, don’t miss your EMI payments as it can severely affect your credit score.

 

Is taking a housing loan on this festival season a good idea?

With the increase in the price of the property, it has become almost impossible to buy a home entirely on your savings. And, this is where home loans come to your help. Getting a home loan is the best way to fulfil your dream of owning a house. And the best time of the year to apply for a home loan is during the festive season. We have listed a few reasons suggesting why you should take a home loan during this festive season.

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Due to various customs and beliefs, people prefer to make huge investments during Diwali. Therefore, banks offer a range of deals and offer to make home loans look attractive. Not only banks but builders also come up with incredible offers to attract customers. During Diwali, getting as huge as a ten percent discount from the builders is quite common. If the festive season ends, there are chances that the banks will do away with festive offers and increase the home loan interest rates. So, it’s better to apply during the festive season.

Lastly, don’t get sidetracked with attractive offers. When searching for a home loan, it is important to pay attention to three attributes, interest rates, tenure, and fees. These factors will decide how much you will have to pay every month once the festive season ends. Therefore, instead of getting distracted by the seemingly attractive offers, evaluate your options carefully to make a well-informed decision. So, hurry up and grab the deal.

Additional Reading:-Why taking a home loan on this festival season is a good idea?

Banks vs NBFCs: Offers lowest home loan rates

A common dilemma faced by potential borrowers is where to apply for a home loan. Should they go to a bank, or approach a non-banking financial company? Both are financial entities that offer lucrative deals to customers with all kinds of borrowing needs. However, it is important that you should first clearly understand the differences between the two.

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One of the major difference is that these two institutions are managed by separate government agencies. While the RBI keeps a check on the banks, the Companies Act regulates NBFCs. No NBFCs offer overdraft facilities. As far as banks are concerned, only a handful few offer overdraft facilities. While choosing between a bank and an NBFC, you should first compare interest rates. Choose the one offering the lowest interest rates with better offers and terms & conditions. Further, a credit score of 650 and above is considered suitable to obtain loans at better interest rates.

However, customers with a lower score may find loans from NBFCs to be less stringent in terms of eligibility requirements. Plus, documents required for home loans are minimum when it comes to NBFCs. The procedure in the case of banks is more cumbersome. State Bank of India (SBI) offers home loan at the lowest interest rate of 8.65% onwards, with special discounted rates for women borrowers. Other banks such as Axis Bank and Citibank also offer home loans at affordable interest rates. Hence, both banks and NBFCs have their advantages and a final decision must be made keeping in mind the interest rates, charges, credit score, and the loan disbursal timelines.

RELATED:Banks vs NBFCs: Who provide the lowest home loan rates

How Housing Loan EMI Calculator is Helpful for Borrowers?

Home loan is availed for a longer period of up to 30 years and is a big liability, so, it is very important that the loan is affordable. If the loan repayments are unaffordable, then the borrower might end up in a debt trap. In order to assess the affordability of the home loan, you can use the Housing loan EMI calculator available online free of cost. EMI calculator requires three inputs:

Loan amount, the rate of interest applicable and tenure to calculate EMI schedule. There are many benefits of using an EMI calculator: With the help of an EMI calculator, you can estimate your monthly repayments instantly and can assess your affordability.

If you find that EMIs are not affordable, you can reduce the loan amount or increase the tenure to make them pocket-friendly. EMI calculator provides you a complete EMI schedule. You can also see the statement of the outstanding balance of your home loan after each EMI payment.

EMI calculator is very easy to use and you can also compare EMI of different lenders. So, before you apply for a home loan you should use the EMI calculator available online free of cost, to calculate your home loan EMIs and to ensure that they are affordable.

RELATED:How Home Loan EMI Calculators is Helpful for Borrowers?

Buying House in Hyderabad? Check Home Loan Offers

Hyderabad located in Southern India is a major IT hub, with several upscale restaurants and monuments to visit. With the rapid growth, people from across the country have come down to settle in this city. Growing population has led to an increase in demand for own houses in the city.

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If you are looking for a home loan and you don’t have enough funds for same, then you can avail a home loan. There are numerous lenders offering home loan in Hyderabad. Following points will help you in choosing the best loans for you: Interest rates on home loan vary across lenders, so always compare interest rates before applying for a loan. To ensure EMI are affordable and pocket-friendly, use online EMI calculator to calculate prospective EMIs. Home loan is a long-term loan, so it is pertinent you choose a service provider with a good sales history and better customer service to avoid any unreasonable charges later on. Credit score is a measure of creditworthiness. It helps lenders in deciding whether to process your loan application or not. Generally, a credit score of 650 and above is considered good. If your credit score is good, you can negotiate with the lender regarding interest rates being offered and ask for a processing fee waiver. You can apply for a home loan online through online aggregators. For a hassle-free application and approval of your loan keep above mentioned points in mind.

Buying House in Hyderabad? Check Home Loan Offers Before you begin your Search