Loans And Houses
Today everyone wishes to possess a self owned house. Some people can afford to buy house on their own but majority of people prefer taking loans either from banks or financial institutions. There are many banks and financial institutions that are offering easy loans for purchasing houses and even construction of same. One may choose a bank or any financial institution on the basis of the banks charging lesser rate of interest. There are certain terms and conditions which should be followed before assigning the loan to a person. The banks or financial institutions shall also ask the person to submit some documents which are necessary in order to avail such loan. The basic reason for asking these documents is to authenticate the identity of the person who is in need of a loan.
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.
EMI's which stands for Equated Monthly Installment varies depending upon the tenure one chooses. The more the number of years, the EMI will decrease. It means that the monthly payment of installments decreases as the number of years increase. If the number of years is less, the EMI will definitely increase. The main purpose of the bank is to get back the loan amount along with the interest.
It is very necessary for the person who wishes to buy house to first calculate the actual price of the house. Secondly the person should check that the property he is willing to buy is free from any legal obligations. In order to prove it is a better idea to get a No Objection Certificate. Loan is only granted after application form along with relevant documents is submitted in the bank. Income proof and residential address proof are most important documents which the banks or financial institutions generally ask for. Banks and financial institutions also verify the organization or company in which the person seeking loan is employed and even verify his residential address.
A sanction letter with all the details of the loan is issued after all required terms and conditions are fulfilled. The details of loan include the actual loan amount, tenure of loan, the rate of interest on loan amount and the manner of repaying the entire loan amount. The official's of bank or financial institution also keep the original documents which are in context to property being purchased. The purpose behind keeping these documents are for the sake of security reasons. Till the entire loan amount is repaid these documents remain in bank's possession. Moreover, these documents are also sent for scrutiny. Final disbursement of loan is done only after bank officials visit this property and make sure everything is fine.
The housing loans is a blessing for those who are in need of house and cannot afford to buy on own. - 23218
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.
EMI's which stands for Equated Monthly Installment varies depending upon the tenure one chooses. The more the number of years, the EMI will decrease. It means that the monthly payment of installments decreases as the number of years increase. If the number of years is less, the EMI will definitely increase. The main purpose of the bank is to get back the loan amount along with the interest.
It is very necessary for the person who wishes to buy house to first calculate the actual price of the house. Secondly the person should check that the property he is willing to buy is free from any legal obligations. In order to prove it is a better idea to get a No Objection Certificate. Loan is only granted after application form along with relevant documents is submitted in the bank. Income proof and residential address proof are most important documents which the banks or financial institutions generally ask for. Banks and financial institutions also verify the organization or company in which the person seeking loan is employed and even verify his residential address.
A sanction letter with all the details of the loan is issued after all required terms and conditions are fulfilled. The details of loan include the actual loan amount, tenure of loan, the rate of interest on loan amount and the manner of repaying the entire loan amount. The official's of bank or financial institution also keep the original documents which are in context to property being purchased. The purpose behind keeping these documents are for the sake of security reasons. Till the entire loan amount is repaid these documents remain in bank's possession. Moreover, these documents are also sent for scrutiny. Final disbursement of loan is done only after bank officials visit this property and make sure everything is fine.
The housing loans is a blessing for those who are in need of house and cannot afford to buy on own. - 23218
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posted by X - Men @ 4:49 AM
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