Published on :2025-02-27
In India, owning a home is a dream for many. Buying a new home is considered one of the greatest achievements of their life; it is a milestone for them. And why not? After all, being a homeowner not only gives your family a roof over their head but also gives you that sense of financial security.
If you are looking to purchase a new home or construct your own house but don’t have enough money to complete the purchase or start the construction work? Don’t worry! You can apply for a home loan, get the desired funds, and take a step closer to homeownership.
If you are not very financially savvy and not sure what a home loan is or how it works, then this guide is just for you. Read on!
A home loan is a type of credit offered by banks, HFCs (housing finance companies), etc, to help potential home buyers make their dream of being a homeowner come true. Home loans are secured loans, meaning the property for which you avail the loan acts as collateral or security, giving the lenders a greater degree of assurance of recovering the money if you fail to repay the amount on time.
A home loan is also commonly known as a housing loan, and it helps you own or construct a home and even pay for it without dipping into your savings or liquidating the investments.
Now that you know what a home loan is, you must also know how a home loan works.
The working of a home loan is actually quite as simple as it may seem. However, it does entail certain steps and legal processes, which include:
The processing time for a home loan may vary from one lender to another, and also how well you comply with the legal requirements, including the documentation process, making a down payment, and rectifying the errors in the application form (if any).
But generally, if everything goes well, the processing time can range from a few weeks to several months. With a lender like India Shelter, you can be assured of a quick approval process and swift turnaround time so that you can complete the purchase at the earliest.
Also, they offer a dedicated customer support service. A dedicated representative will help you get answers to all your queries as well as guide you through the whole process, from filling out the application form to documentation and working in your interest until the disbursement is complete.
Home loan balance transfer is a service offered by financial organisations that allows you to transfer your home loan from the current lender to a new one. You can do this to take advantage of the lower interest rate offered by the lender and repay the balance amount at reduced EMIs and ease the repayment burden.
Getting a home loan is the most financially wise decision to fund the purchase of a new home. It allows you to repay the amount in affordable EMIs over an extended period of up to 30 years. However, finding the right lender is the key to having a hassle-free experience.
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