How To Get A Home Loan
The Indian economy is booming. Salaries are increasing. Consumer spending on housing is on the rise. Much of this spending is financed through banks and other financial institutions. In 2004 more than ten lakh (one million) Indians bought homes using loans from bankers. In 2003 finance companies and banks paid out home loans worth Rs. 51,000 crore. In 1999 the interest rate on a 15 year home loan was about 13-16%, but by 2005 this had dropped to 7-9%. Home loans are now more affordable for consumers.
There are so many choices, and so many confusing terms. How do you compare between the different deals for home loans, and decide what is best for you?
You need an action plan to choose a good home loan, based on your needs. If you follow the plan below, you will understand the tradeoffs in each of these phases - and be able to make informed decisions.