- 08
- Aug
Self owned home is something which everyone’s wishes. There are some who can afford to buy house on their own but everybody cannot afford to buy house on their own. For those who cannot afford there are several banks and financial institutions who lend easy finance. The person who wishes to buy a house can either get loan from a bank or after inquiring about the rate of interest being charged by them. Certain rules and regulations are needed to be followed before which the bank or financial institution assigns loans. Submissions of important documents are asked by the bank officials which are to be submitted before acquiring loan. Banks ask for these documents in order to check the validity of the person.
Different tenures are available for the borrower to opt like three years, five years, ten years or even fifteen years. These tenures vary in different banks and institutions. The person seeking loan may choose any tenure which depends on the repaying capacity of that particular person.
Depending on these categories the EMI’s i.e. Equitable monthly Installments are calculated and are explained to the borrower. It is a fact that as the number of years increase, EMI shall decrease. The amount which a person has to pay to the bank on monthly basis further decreases. The lesser number of years, more is the EMI. The only thing any bank is actually concerned is that the borrower should be able to repay the loan amount along with interest in time.
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.
