What is Home Loan And How to Get it

What is Home Loan And How to Get it: Do you know what is Home Loan, how many types of Home Loan are there, Reasons for taking Home Loan, advantages and disadvantages of Home Loan and how to get Home Loan.

If you do not know the answers to the questions asked above, then today’s article is going to be very important for you. In today’s article we are going to give you complete information about Home Loan. This article is important for all those people who want to take a home loan and do not have correct information about home loan.

The answers to all your home loan related questions are hidden in this article, so to get more information about home loan and to clear your confusion related to home loan, read this article till the end.

What is Home Loan

Every person wants to have his own house in which he can live with his family. Most of the people in India belong to middle class families, hence even after working, they do not have enough money to build a good house for themselves. In this situation they have to go to banks to take a loan.

Home loan is an amount of money that a person borrows from a bank or financial institution for a fixed period of time to construct his house and later pays EMI to the bank or financial institution every month at a fixed interest rate.

Home loans are secured loans, when a bank or financial institution provides a home loan, it takes any property of the person taking the loan as security.

That is, whenever you go to any bank or financial institution for a home loan, you have to pledge any of your property with them in exchange for the loan. If for some reason you are not able to repay the loan, the bank can repay the loan given by selling your item.

Type of Home Loan

Home loans can be of many types, you can use the home loan for whatever purpose you are taking it for. Home loans can be of the following types –

1. Home Purchase Loan

• Home Purchase Loan is taken to buy a new house.

2. Home Construction Loan

• Home Construction Loan is taken for construction of a new house.

3. Home Improvement Loan

• Home Improvement Loans are very useful for getting your home improved.

4. Land Purchase Loan

• When you want to buy land to build a house, then Land Purchase Loan can be taken.

5. Joint Home Loan

• When two or more people take a loan from the bank to build a house, it is called Joint Home Loan.

6. NRI Home Loan

• Non Resident Indian (NRI) Home Loan is a special type of loan given to NRIs in India for constructing houses. The procedure and formalities for applying for this type of loan are different from other home loans.

7. Bridge Home Loan

• When a person already has a home loan and they want to buy a new home again then they are given a bridge home loan. Bridge Home Loan: Take short-term loan. This type of loan can be taken for a maximum period of 2 years.

Why Take Home Loan

The biggest reason for taking a home loan is that the prices of properties in our country are very high due to which it is not easy for people to buy houses, land and buildings. People’s income and savings are not so high that they can pay the entire amount for the house or land at once. Then they need home loan, women and men go to banks and financial institutions to get home loan.

Uses of Home Loan

Different types of home loans are used for different purposes. You can use home loan in the following ways –

• to buy a new house
• to build a house
• to make home improvements
• to buy land

Home Loan Rules

The conditions for giving home loan are different for every bank and institution but they all have some basic rules which are as follows –

• The person taking the loan must be an Indian, Non-Resident Indian (NRI) or a Person of Indian Origin.
• The age of the loan taker should be between 18 to 70 years.
• If the person taking the loan is employed then he should have 2 years of work experience.
• If the person taking the loan is a businessman then his business should be at least 3 years old.
• The income of the person taking the loan should be at least Rs 25000 per month.
• The bank gives only 80 percent of the property to the person taking the home, the remaining 20 percent has to be arranged by the person taking the loan himself.

Home Loan Calculator

All banks and financial institutions have some parameters on the basis of which they calculate which customer to give loan to, to whom not to give, to whom how much loan to give, on the basis of these parameters they calculate the loan. These parameters are as follows –

• What is the monthly income of the person taking the loan?
• How much savings does the person taking the loan have?
• Whether the person taking the loan already has any existing loan or not.

Home Loan EMI Calculator

EMI is the amount which the loan taker pays every month on a fixed date. EMI is called Equated Monthly Installment in Hindi.

EMI = Principal amount + amount of interest on principal amount

The amount of EMI to be paid is calculated by the following formula

EMI = P.R {(1+R ^N)/((1+R ^N) – 1)}

In This Thread

• P = Principal Amount
• R = Rate Of Interest

How to Get Home Loan

You get a home loan only on the basis of the points mentioned above in the article, home loan rules and home loan calculator. To take a home loan, you can apply both online or offline.

You can apply for home loan online by visiting the portals of the respective banks or financial institutions. And you can fill the home loan application and submit it along with the necessary documents.

While offline, you can contact the nearest branch or office of the bank or financial institution and find out the process of taking a home loan. The process of giving home loan may be different for different banks and financial institutions.

What Documents Are Required for Home Loan?

To take a home loan, you need the following documents –

• application form
• Identity Card or Aadhar Card
• age certificate
• Address proof
• income proof
• Property related documents
• passport size photo
• a bank account
• Bank account statement of last 6 months etc.

For more information about the documents, you should contact the concerned bank or financial institution.

How to get home loan for women?

If women want to take a home loan, they are given the loan on the basis of the following criteria –

• Citizenship must be Indian
• Age should be between 23 to 58 years
• Must have at least 3 years of experience in professional work.
• Income should be 25 thousand per month.

Benefits of Home Loan

Following are the benefits of taking a home loan –

• You can do different types of work by taking different types of home loans.
• You can build a wonderful home for yourself.
• Interest rates on home loans remain low.
• Most home loans are long term which you can repay easily.

Disadvantages of home loan

There are some disadvantages of taking a home loan –

• Home loans are long term, hence a common person cannot take any other type of loan in the meantime because most of his income goes into repaying the loan.
• In a home loan, your property is under the control of the lender; in case you are unable to repay the loan, you can lose your property.

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Conclusion:

This was the complete information about Home Loan Kya Hai In Hindi which must have been useful and important for you. You can also build your dream house by taking a home loan. We hope you got help from the article written by us. If you liked this article, then please share it with your friends on social media.

FAQs: What is Home Loan And How to Get it

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