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| Consumer Friendly Home Loan Schemes |
| Buying a new home is an exciting experience. But without the
right knowledge and guidance, it can be a little risky. The
privatization of Banks has proved beneficial for the common
people especially the middle class or upper middle class. Real
estate rates are getting higher day by day so cash purchase of
the property whether big or small is becoming impossible so the
purchaser needs a financer who can provide the loan according to
their requirement. The interest rates have fallen down and there
is easy access to the home loan. If we analyze the trend in
interest rates for the past 2-3 years it has gown down excluding
year 2004 which has a reverse trend. Interest |
rates stabilized
and showed an upward trend. Housing finance companies increased
rates by about 50 basis points; rack rates for floating rate
loans ranged from 7.50% to 8.00%, while those on fixed rate
loans were quoted at 8.00%-8.50%. Existing floating rate loan
holders had to choose between higher EMIs or longer tenures.
The trend also depicts that the loan seekers are preferring the
floating loan plan over the fixed one. Some real estate
financers provide fixed loan schemes but some introduced the
hybrid scheme. In hybrid loan scheme there is fixed loan for
specific period and change thereafter. The upward trend in the
home loan have forced the loan |
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seekers to evaluate all the
schemes offered to them and choose the one that suits the best
to them. The consumer should opt for the scheme according to its
risk handling capacity. If one can handle risks and want to go
some extra mile then for him the floating scheme is the best
choice. Otherwise the fixed loan scheme is the best option for
the consumer. All top ranking banks provide the fixed/floating
loan scheme.
Flexible loan installment scheme is provided by almost every
bank. This scheme helps in case the parent and children purchase
the property together. The parent is going to get retire soon
and children have just started the earning. This |
option helps
such customers combine the incomes and take a long term home
loan where in the installment reduces upon retirement of the
earning parent. There are other options like the payment of loan
in accelerated format. This can be done by increasing the EMI
which saves the interest also. So the consumer has various
options according to their needs. One needs to research the
market and find the right financer for their dream home purchase.
For any further information: property dealers and
online real estate
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