106th Day Of Lockdown

Maharashtra2237241231929448 Tamil Nadu118594711161636 Delhi102831742173165 Gujarat37636267441978 Uttar Pradesh2996819627313 Telangana2761216287313 Karnataka2681511100417 West Bengal2383715790804 Rajasthan2140416575472 Andhra Pradesh211979745252 Haryana1799913645279 Madhya Pradesh1562711768622 Bihar12525933898 Assam12523833016 Odisha10097670354 Jammu and Kashmir89315399143 Punjab67494554175 Kerala5895345228 Chhatisgarh3415272814 Uttarakhand3230262143 Jharkhand3018210422 Goa190311568 Tripura171612481 Manipur14307710 Himachal Pradesh107876410 Puducherry104351714 Nagaland6443030 Chandigarh4924017 Arunachal Pradesh270922 Mizoram1971390 Sikkim125650 Meghalaya94432
Business Other News 05 Jul 2018 Only 7 per cent peop ...

Only 7 per cent people find securing home loan easy

FINANCIAL CHRONICLE
Published Jul 5, 2018, 8:55 am IST
Updated Jul 5, 2018, 8:55 am IST
Increase in rate of interest is a matter of concern for homebuyers who are planning to buy a house at this time.
While rising interest rate is a cause of worry, customers are also intimidated by the long payback period and tedious process involved in securing a loan.
 While rising interest rate is a cause of worry, customers are also intimidated by the long payback period and tedious process involved in securing a loan.

New Delhi: Banks as well as non-banking financial co­m­panies are quite aggressive in the housing finance market. But only se­ven per cent customers find it easy to get a home loan these days. While rising interest rate is a cause of worry, customers are also intimidated by the long payback period and tedious process involved in securing a loan.

According to a consumer poll by property site MagicBricks, 93 per cent customers have apprehensions about home loans and the process of securing it. For 45 per cent of prospective ho­m­ebuyers, rising interest rates for home loans remains an impediment in buying their dream house.

 

The consumer sentiment has only become stronger af­ter last month’s hike in repo rate by the Reserve Bank of India (RBI). Increase in the rate of interest is a matter of concern for homebuyers who are planning to buy a house at this time.

Long payback period is a worrying factor for around 27 per cent borrowers, wh­ereas 21 per cent feel that the tedious process of applying for a home loan is the biggest problem.

Only 7 per cent borrowers feel that it is easy to get a home loan these days. The main concern of banks these days is to make sure that the borrower can comfortably repay the loan on time.

“Home loans are availa­ble from mainly 2 types of le­nders – commercial banks and housing finance firms. Lende­rs may quote different rates of interest and other terms and conditi­o­ns, so homebu­yers should contact several lenders to ma­ke sure you are getting the best value for money,” sa­id E Jayashree Kurup, head (editorial and advice), Magicbricks.

Many banks have started simplifying the process for those customers whose cre­d­it history is clean. Buyers with a clean borrowing track record and consistent inco­me are likely to avail a hassle-free loan. The higher the monthly disposable income, higher will be the loan amo­unt you will be eligible for.

Typically, a bank assumes that 55-60 per cent of the mo­nthly income is available for repayment of loan. But some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income.

“While applying for a ho­me loan, banks ask for all legal documents relating to the house being bought, ide­n­tity and residence proof, la­test salary slip, Form 16 and last six months bank statements/balance sheet. If all your documents are clean and as per the bank requirements you should not face any problem in availing a home loan,” added Kurup.

...
Location: India, Delhi, New Delhi




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT