Your home is place where you relax and spend your memorable moments with your family, friends and relatives. Buying a home is an investment and your lifetime achievement. Home loan is aid or assistance that helps you to buy your dream home without much burden on your lifestyle and monthly income. Following are important element to consider when applying for home loan.
Important Elements to consider
Amount available: Repayment of home loan includes amount borrowed and interest on the amount. It is divided into monthly EMI for easy repayment. Loan available depends on your income, monthly expense, age, and tenure or loan period, affordable monthly EMI etc. More your income is more you get loan and if you want more loan but limited monthly EMI, tenure of loan will be extended. It depends on the bank or financial institute that offers you home loan.
Eligibility: Applicant must not be less than 18yrs of age. May or may not be citizen of the country. Applicant must be salaried person, self employed professional or businessman or government employee.
Tax benefit: You can avail tax benefit for the amount borrowed and principal amount repaid. To get the benefit of tax benefit you must pay your monthly EMI without any default and fulfill conditions stated in Income Tax Act.
Co-applicant for home loan: You can enhance your loan amount by including co-applicant for home loan. You can include your spouse, parents, or children as co-applicant for home loan.
Tenure of loan: Tenure of loan depends upon the mutual agreement between lender and borrower. Normally loan can be repaid over a maximum of 15 years for self employed professionals and businessman and 25 years for salaried person. If you reach 60 years of age or loan period whichever is earlier.
Purpose of home loan: Home loan can be applied for buying a new home, reconstruction of existing home, purchase a ready built flat or house and switching from existing home loan to another loan etc.
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