If you want to take a home loan but worried about high interest rates you are not alone? One of the reasons why so many avoid availing any kind of loan is the ‘rising’ interest rates. This is true for home loans as well. Fret not, home loan interest rates are falling, and now is possibly the best time to buy a house.
Why just buy a house, you can even use a housing loan to renovate your old house? Oh, so you thought home loans can only be taken to buy a new house? Not at all, they can be availed for a variety of things, apart from buying a new house. You can take a home loan to construct a new house in a plot of land, to buy a plot of land or property and construct a house on it, to renovate your home, carry out repair work in your house or even to add a new built-up area in an existing house. You can do all of this with a home loan.
Now comes the real deal? Do home loan interest rates worry you? You think you will have to shell out a lot over EMIs to repay your home loan? Well, the deal with EMIs is that it will also depend upon the tenure that you choose. The longer the tenure, the more interest you pay on your home loan, the lesser the tenure, the less interest you pay. Of course, the overall EMI will also depend upon the total amount of loan that you take.
Currently, banks and financial institutions such as Tata Capital offer a minimum of Rs 2 lakh as a home loan, and a maximum of Rs 10 crore, subject to 80% of the market value of the property. You will only take that much amount as a home loan that you need to make up after making the initial down payment.
Home loan interest rates in institutions such as Tata Capital are pretty competitive, and the process and documentation are quite customer-friendly. Unlike yesteryears, these days it doesn’t tear up your shoe soles to run behind banks for them to approve your home loan. All you need is to be between 24 to 65 years old and be in possession of some important documents that are needed for processing your home loan application. The documentation for home loans is slightly different between salaried employees and self-employed individuals. Similarly, the home loan interest rates are also different for different classes of borrowers. Take a look at the current home loan interest rates for different types of borrowers:
If you are a salaried or self-employed professional, the lowest home loan interest rate for you would be 9.05% for a loan amount up to Rs 30 lakh. If you have eyed at a bigger house, or if your home renovation costs call for a home loan amount higher than Rs 30 lakh, then you will be charged 9.20% interest.
If you are a self-employed non-professional, looking at a home loan of Rs 30 lakh or less, the lowest interest rate that is applicable to you is 9.20%. The rate will slightly move up to 9.45%, in case you are eying for a home loan amount higher than Rs 30 lakh.
Interestingly, financial institutions such as Tata Capital also have government schemes such as the Pradhan Mantri Awas Yojana 2017 under its hood. Under this scheme, lower-income borrowers are also encouraged to take home loans to fulfill their dreams of owning a house. The government has, in fact, said that borrowers whose income is less than Rs 6 lakh per year would be given home loans at an extremely concessional rate of just 4% under this scheme. Tata Capital extends these loans under their sub-brand Prapti Home Loans, which is a part of their key focus area of providing affordable housing finance. So, if you thought that your yearly CTC is not beyond Rs 6 lakh so you cannot afford to buy a house by taking a home loan, you fear just got allayed. You will not only get a loan, but you will get it at much lesser home loan interest rates compared to many others.
So are home loan interest rates still bothering you? It shouldn’t after we just cleared all your doubts and fears about the same. Just log on to the website of trusted banks and financial institutions such as Tata Capital, compare the different home loan interest rates, and go for the best choice as per your affordability. Apply for the home loan online, and you will soon have a representative knocking at your door to take matters forward.