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Interest Rates for Home Loans in India
Our country, India, where population has
already crossed 1 billion mark measures 3214 km from north
to south and 2933 km from east to west with a total land area
of 3,287,263 sq km. Even with such a large amount of area,
there is scarcity of land for people almost in all parts of
the country, thanks to our rapidly growing population. In
such a scenario, a major part of our country's population
lives in slums where living conditions are very inferior due
to poverty, unhygienic environment and lack of basic facilities
like proper drinking water and electricity.
Owning a beautiful home with a sufficient amount of space,
ventilation and floors equipped with necessary facilities
of water and electricity is desire of every individual irrespective
of his or her occupation and financial position. To the fortune
of many such individuals, this desire of them can be fulfilled
through the medium of home loans. This is due to the fact
that in the current scenario, there are organizations that
are willing to issue loan to you.
There are large number of banks like ICICI, HDFC and SBI
to name the few, financial institutions like IDBI and Citigroup
that actually giving out home loans. Due to large sources
of home loans in the market the competition is high and everyone
wants to flourish its business in order to survive in the
market. To facilitate this goal of survival as well as profit,
home
loan interest rates India have fallen to a very
affordable level. Such competition has proved very beneficial
for general public as earlier they were not in a position
to apply for loans due to high house loan rate in India.
Although, the terms and conditions for home loans differ
from company to company. Generally, the interest rates offered
by home loans
banks and financial institutions in India are
similar to the interest rates that prevail in the market.
Thus more or less all of them are similar as far as interest
on loan charged by them is concerned.
But as far as the terms of home loan are concerned most companies
and financial institutions may have their own criteria. There
are few companies who believe in idea of asking the borrower
to keep his or her property papers with them, for security
reason. This practice is called keeping collateral Securities
with the home loan issuer. The organization that issues the
loan thoroughly inspects your property papers and calculates
real market value of your property. After completion of this
task if they feel that your papers are fair and relevant enough
to be considered by them as Collateral Securities, they grant
you the loan.
On the other hand, there are a large number of lending companies
who go about asking the finance seeker to make a lump some
deposit initially, commonly known as the down payment. And
most importantly there are certain parameters or rules that
are fixed by the all the companies issuing home loan, which
must abided by the loan seeker while going for home loans,
otherwise he or she might land up in trouble along with his
family.
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