Building your dream home is one of the most gratifying life experiences. This important milestone signifies the culmination of the sweat and tears you have invested in building the life you have desired. A home loan has a key role to play in this journey. By giving you much-needed financial support, this convenient credit vehicle allows you to inch closer to your aspired way of living.
As a borrower, you have no dearth of options with regard to a home loan. Choosing from the different ways of securing a home loan is a decision you must arrive at after understanding the associated pros and cons. Read on to know the different ways you can get a home loan in India.
1. Apply With a Bank
This is the most common and popular way of obtaining a home loan in India. Modern banks offer larger loan amounts with competitive housing loan interest rates, flexible EMI plans, and wide-ranging loan tenures for easier repayment.
The benefits, in a nutshell, are as follows:
- Attractive Rate of Interest
As a borrower, a lower rate of interest could result in an affordable loan and repayment plan.
- Balance Transfer Facility
You may transfer an existing home loan to another for better terms.
- Short Turnaround Time
Top banks today offer a turnaround time as low as 3 days.
- Flexible Tenures
You can pay off your EMIs comfortably with longer flexible tenures; you could also opt for a step-up repayment facility.
- No Prepayment Charges
You can pay off your loan prematurely at no extra charges (applicable only for loans taken at a floating rate of interest)
- Inventory of Pre-approved Projects
Some banks offer an extensive inventory of pre-approved projects to turn your dreams into reality.
- Specialized Offerings for NRIs
Leading banks have customized housing loan offerings for NRIs.
- Prompt Customer Service
Get 24/7 customer service for quick and early resolution of queries.
- Pre-approved Top-up Loans
Whether it’s a sudden expense, a change in your floor plan, or a plan to renovate your new home, lenders help you meet these unplanned expenses with a top-up loan facility.
Pick a reputed bank to secure a home loan, and you can enjoy a smooth borrowing journey marked by easy-to-meet eligibility criteria, simple documentation, and faster approval times.
2. Apply with Other Lending Entities
Housing Finance Companies (HFCs) and Non-Banking Financial Companies (NBFCs) also offer home loans in India. HFCs focus on housing finance and are regulated by the National Housing Bank (NHB). These usually offer a higher home loan interest rate as compared to banks, leading to potentially higher EMIs.
NBFCs, on the other hand, offer services similar to those offered by banks. However, NBFCs cannot accept demand deposits and aren’t subject to reserve ratio compliance. Additionally, they may offer higher interest rates than those offered by banks.
To Sum Up
While there are two key ways to source a home loan, banks are easily the superior choice, given the smooth loan application process and a wide assortment of benefits.
If you are wondering how to choose a lender, examine the interest rates, repayment tenures, and terms & conditions offered by India’s leading banks. This will help you assess your options before you apply for a home loan online.
