Most of us cannot afford to build our own homes. This may be due to scarce financial resources or unavailability of land or the absence of a desire to live in an owned home. Whatever the reason may be, there is no denying the fact that an owned home is always better than a rented accommodation since it saves valuable finances and is a valuable long-term investment by all standards.

In context of the Indian housing market, it can be clearly said that the home loan borrowers are happy customers these days, all thanks to the customer-friendly terms, conditions and plans. The reduced home loan EMIs due to intensified competition have opened the doors of personal prosperity and asset accumulation for many home loan aspirants these days.
Due to the emergence of new market players in the Indian housing loan market, the interests of home loan aspirants have blossomed to a considerable extent. There is a remarkable difference in the Indian loan market of yesteryears and today. The changing market trends and attitudes of the financial institutions as well as the other lenders have bolstered the overall growth and prosperity of the Indian housing loan market.

The industry and customer-friendly guidelines issued by the Reserve Bank Of India (RBI) have also strengthened the market norms and attitude. If we have a close look at the home loan EMIs rates for the last few years, we can easily conclude that the reformative measures introduced by many financial institutions and the Indian government in all these years have contributed significantly in an attempt to grab the attention of home loan aspirants. The home loan EMIs have helped the middle and low-class income earners to start thinking about their own homes. This is evident from the fact that in the last two years, the majority of customers asking and/or availing the home loans belonged to these economic classes. The option of making an equated monthly instalment rather than making a lump-sum payment obviously encourage more home loan aspirants.

Some of the most eminent Indian financial institutions such as State Bank of India, HDFC, ICICI, Standard Chartered and Punjab National Bank etc. have opened their hands to greet the home loan aspirants. The plans and policies of these banks have motivated the working class of the country to strive for an owned home rather than living the life of misery in rented or PG accommodation.

A prospective home loan borrower must consider certain things before starting the search for a lender. He must be ready to spend some of his valuable time in understanding the present home loan market trends as that will help him to get effective bargains without losing his focus. The advice of a financial expert, who is dealing in the arena of home loans, is highly recommended since he can offer a complete insight into the complexities of the housing loan segment.

Home loan in India can be taken by any individual who is of the age of 18 years and holds the citizenship of India. Some of the banks are also offering the home loans to NRIs, subject to fulfilment of certain pre-defined conditions. The loan applicant must have a regular source of income and preferably must be enjoying a good credit rating. He must have a valid identity and residence proof such as Government ID card, PAN card, passport, voter ID card and bank statement with address etc. The loan formalities are quite easy, making it pretty easy for the loan aspirants to obtain such loans.

Thus, it can be easily said that the reducing home loan EMIs have surely helped the Indian masses to think beyond the self-defined limits.

Own house is the dream of every person. For a middle class person, it is considered as a life time achievement as it requires quite a huge amount of money. Banks play a pivotal role in fulfilling this basic need. The products they offer and the services they provide are of immense use to people who intend to have their own house. For a safe and beneficial home loan, proper awareness over the products, policies, terms and conditions of the bank is most important as ignorance may result in more payments to the bank in terms of principal and interest components.

With proper planning and a right approach you can avail an easy and beneficial home loan to fulfill your dream of possessing a house. The following ten-step plan will certainly help you in accomplishing the task:

Know about the products: Prior to going for a home loan learn about the products that various banks offer; also know about their terms and conditions. After careful study select a product that suits best to your financial status.

Know about the rate of Interest: This is the most important factor about which you have to think more than once prior to going for a home loan. Plan carefully whether you want to go for a fixed or a floating interest rate plan. Have a good clarity from the bank so as to avoid disappointment in the future. Also if you go for a fixed interest rate plan, make yourself clear if it is fixed for the whole tenure or subjected to changes as per changes in money market conditions.

Know about the repayment Period: Choose an apt repayment schedule as per your financial status and possible future growth. Usually banks offer a tenure ranging from 1 to 25 years for home loans, and 1 to 15 years for mortgage loans. So keeping in mind of your income levels and liabilities choose your own plan for flexible repayments to avoid future disappointments.

Know about the eligibility criteria: Banks usually take fixed and variable income sources into consideration to approve a home loan. They reserve the right to sanction or reject the application if they find any information misleading. So it is advisable to provide useful applicable information only. Once you receive the sanction letter please read it carefully for Interest rate revisions, Sanction conditions, Pre-closure charges and terms and conditions of the bank before signing it.

Legal documents and scrutiny: You must submit all the legal documents pertaining to the property you intend to buy to the bank. So you must collect all the link documents, lay out and plan, and ownership documents from the vendor. It is to be taken care that if there is any legal dispute on the property then the proceeding and judgment copies are also required.

You must verify the legality of the property with a legal advisor prior to buying it. Banks will not hold any responsibility if any legal issue that may arise in future, and the customer has to continue to repay the loan. Remember that bank will not take any responsibility about the legality of the property.

Technical evaluation: Banks evaluate the value of the property based on the standards set by their panel members. You should take all security measures against the deviations both horizontal and vertical which will affect loan processing as well as future transactions. If the property has deviations, you should ask the vendor for the copies of regularization. The property should have the necessary permissions or documents to regularize the deviations according to Building regularization scheme (BRS). Also, check all the details like plot area, sanction area, plot number and the government approved plan valid dates before going for a processing.

Home Loan Agreement: Please read the document carefully before signing it as it is a long term contract between the customer and the bank. Once you sign the document it can’t be altered or modified until you repay the loan in all respects.

Registration: Home Loan processing ends with the registration of your dream property. Take care that the sale deed clearly states about your complete ownership of the property. Remember that even a small mistake can lead to bigger problems. So read the sale deed documents carefully prior to submitting for the registration process.

The vendee should collect all the link documents, Plan copies and tax Paid receipts from the vendor at the time of registration only.

Processing, pre-payment and foreclosure charges: The customers have to pay the processing charges to the bank for the loan availed. The customer should know about the additional charges which bank will make in cases of pre payments and foreclosures. A customer needs to pay a max of 4 % of the outstanding principle along with service tax towards the foreclosure charges of the loan.

Tax exemption: In addition to giving the joy of possessing a house, home loan provides the facility of Tax exemption on the principal and interest paid over a financial period.

A customer can claim tax exemption for the amount paid as stamp duty during the registration process. The Bank will provide you with the provisional certificates to claim the tax exemption from the income Tax department.

There are various aspects of home loan that one can indulge in like reconstruction of the existing house, purchasing a brand new hours, some additional work needed to be done in an old house. Individuals these days work for three basic necessities of their lives namely money, home and clothing. The lives of a common man in the nation revolves around three necessities called as food, shelter and clothing and anyone having these three things is considered the most blessed individual living on the Earth.

The policy of home loan with some slight differences is applicable to both Indians in their native country and even those who are settled abroad. No doubt, getting a home loan is the most sought-after loan these days and one it is approved then people eagerly look forward to availing a home in a desired location.

There are also plenty of questions that arise in the mind related with the home loans like is there any fine charges if loan is paid ahead of due date, which is the best deal in home loans,is the home loan suitable enough to suit the individual’s budget,what happens if unable to repay the home loan. Getting a Home loan can sometimes also be an exhausting task. There are varied rate of interest depending upon the home type and location and also the size.

One should always be aware of the information and details needed to know beforehand of the loan application. Its a long road ahead right from the filing a loan application to actually availing a home in the desired locality. Home loans in India have acquired a more approachable and easy picture becoming immensely popular and quite competitive. Owing to the fact that there are several loan agencies and financial institutions to understand the need of home particularly of a common man. Since most of the applications and dealings are computerised, one can also look forward to availing loans through online.

New age loans depict the evolving scenario of home loans in India. Definitely, there are certain lists of guidelines and instructions to be read carefully before filing a loan application online. Also, given the fact that there is cropping up of several real estate property these days in big cities, getting a home loan is not a big deal at all.

Now, before one files a loan application online, it is crucial to navigate the websites of relevance. Websites contain information that might be of great aid while applying for a loan. There are hundreds and thousands of loan companies willing to take care of a loan application of an average man who is not very rich. Rich people need not roan around the loan market seeking and noting down the relevant details mandatory for any successful loan application.

Inexpensive, affordable rate of interests and simplicity are some of the most distinctive features of the home loans in India. Most of the home loans have longer repaying time duration giving ample time to people to pay back. Instalments are so easy that one can go for any loan deal at the blink of eye. All the individuals who are salaried, professionals, businessmen, retired individuals, housewives and cultivators and last but not the least non-resident Indians too. It wouldn’t be an understatement to say that the rates of interest govern the home loan applications. The instalments one needs to pay has a major effect on the individuals salary, they actually determine the standard of living and also the lifestyle is influenced to a greater extent.

Real estate property includes important lands, buildings, bungalows and apartments given on rent or purchase. With the coming of real estate property in India, many industrialists and businessman have pinned their hopes toward the profits and funds generated from this booming and upcoming industry. If not willing to pay heavy instalments then consulting a financial advisor would be a prudent decision. There are obviously various loan lenders in the loan market.

Home purchase loans : Loan for purchase of a house.
Home improvement loans : Loan for repair works and renovations in a home already purchased.
Home construction loans : Loans for construction of a new home.
Home extension loans : Loans for extending or expanding an existing home.
Home conversion loans : Loans for those who have financed the present home with home loan and wish to purchase and move to another home for which some more fund is required. Existing home loan is transferred to new home without need of pre-paying the previous loan.
Land purchase loans : Loans for purchasing a land (plot) for both home construction and investment purpose.
Bridge loans : Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps to finance the new home until a buyer is found for the old home.
Balance transfer loans : Loan to help you to pay off an existing home loan and avail the option of a loan with a lower rate of interest.
Refinance loans : Loans to help you to pay off the debt you have incurred from private sources like relatives and friends for the purchase of your present home.
Stamp duty loans : Loans for paying stamp duty.
Loans to NRIs : Loans for NRIs wishing to build or buy a home in India.

Why one should take a loan ?

The loan not only gives you tax benefits, it gives you the facility to repay the loan in EMIs. Both principal as well as interest paid attract tax benefits.

But the loan does not come free.

Other costs are involved.

Processing charge : It is a fee payable to the bank or hosuing finance company at the time of applying for a loan. It may be a fixed amount or may also be percentage of the loan amount.
Pre-payment penalty : When loan is paid before the expiry of the agreed duration, the person has to pay penalty fixed by the company / bank and it may 1-2 % of the amount being pre-paid.
Commitment fees : Though not all banks / companies, many banks / companies levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.
Miscellaneous charges : Some lenders may levy a documentation or consultant charges.Registration of mortgage deed.

If you want a loan, though you like it or not, you have to pay these charges.

Documents required :

Income proof : A salary slip for employed, or IT returns of at least 3 years for self-employed.
Residence Proof : Ration card, land line bill (preferably MTNL), Electric bill.
Photo ID Proof : Driving License, Pan Card, Voter’s ID card etc.
Age proof

Amalgamated Banks of South Africa (Absa), with assets of more than R456 billion, was formed in 1991 â?? clearly a big cheese in the banking world. Barclays Bank (UK) has a +- 56% stake, a factor that certainly makes me feel more secure. And, after all, itâ??s security youâ??re after when you take out a mortgage.

The company is a front runner in the housing loans market in South Africa and an immediately recognisable South African brand.

Absa offers a number of home loan products, structured to fit every conceivable budget. They are known especially for their MultiPlan option and wide range of choices for lower-income home owners.

So, what does Absa have to offer? Letâ??s look at Absaâ??s core home loan option, the Absa Home Loan; MyHome, a home loan product aimed at first-time and low-income buyers; and home loan add-ons and special features. Absa also offers an exciting Buy-to-let product for aspirant landlords, and building loans that are designed to cater for the needs of the growing number of small businesses in the country.

Absa Home Loan option

The great thing about the core Absa Home Loan is that it is flexible and can be customised to suit varying requirements. It has been designed in such a way that it really isnâ??t a home loan package at all; it is a home-building block that can be coupled with various add-on options and features in the same way youâ??d use a little black dress to create a wardrobe of different apparel for every occasion. Itâ??s not a no-name product or a generic; itâ??s a vehicle without aircon, sound system, mags and bull bars. You get to choose whether you want to drive a Pajero or an ox cart.

With the Absa Home Loan you can:

â?¢ Specify your repayments by selecting your preferred term and choosing which interest rate youâ??d prefer, flexible or variable. In the current economic climate, having this choice is important.
â?¢ A FurtherAdvance option allows you to easily increase your loan (if you qualify).
â?¢ Transactions are made quick and easy with electronic transactions and due-debit orders. FlexiReserve allows you to withdraw cash from your loan electronically.
â?¢ When you pay more than you need to, you start saving immediately on repayments.
â?¢ You can select one repayment, one term and one interest rate for multiple properties â?¦ or not. You choose.

MyHome option

This is the a home loan of choice for anyone (or couple) who earns less than R7500 a month. Even if you do not have formal proof of income, which these days you need for practically any purchase, TargetSave helps you to work towards overcoming this obstacle. MyHome, like the Absa Home Loan, is flexible and designed to integrate with optional features and add-ons to create tailor-made solutions for you. Absa also offers comprehensive insurance options to insure your nest.

Some of the benefits you receive from the MyHome home loan:

â?¢ A 108% home loan.
â?¢ An informative training course if your loan is more than 75% of the property valuation.
â?¢ If you take out Absa House Owners Comprehensive Insurance, you pay lower premiums.
â?¢ There is no deposit required

Absa home loan add-ons and extra options

When youâ??re taking out a home loan you need to be sure it is capable of adapting to your needs. When it comes to home loans, youâ??re looking for the equivalent of a vehicle manufacturer who offers you a basic â??Kaâ?? with the option to add on various luxury extras.

Interest rate options

You can choose a fixed rate or a variable interest rate depending on your view of the countryâ??s economic future.

FastForward

With FastForward you can automatically increase your bond repayments. Your home is probably your most secure and most important investment; itâ??s in your best interests to pay it off quickly.

FlexiReserve

Need extra cash? FlexiReserve lets you withdraw funds available in your Home Loan account when you need it. And itâ??s quick and easy too with Internet Banking.

ReAdvance
So you didnâ??t choose FlexiReserve and now you need money? Apply for a ReAdvance.

FurtherAdvance

FurtherAdvance allows you to register a higher amount on your bond up front, even before you need it, so that you have access to that virtual loan if and when you do need it. Naturally, your home needs to be worth this increase at the time you apply, but this option lets you save time and money in the long run. Ironically, itâ??s insurance for when things are going better than expected and you need money to grow.

MultiPlan

With Multiplan you can structure your home loan account into separate accounts with different interest rates, terms, etc. MultiPlan is like a spreadsheet; you can design the way you want to handle your home loan yourself.