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Largely, borrowers obtain a home loan for a duration of 20 to 30 years. For most of the working class as well as the SME businessmen, this constitutes a major part of their life. Therefore, it is absolutely essential to evaluate all the relevant factors while choosing the best housing loan in India . There are several features that affect this decision. Here are the most important aspects that one needs to bear in mind when making a choice:

• Interest rate: This is by far the most important factor while opting for housing finance. Whether you choose a floating rate, fixed rate or hybrid structure, it affects your EMIs considerably. This is the most important decision for a borrower. Hence, you must remember to negotiate the interest rate and ensure that all the agreed factors are written down in the loan application.

• Purpose: Though most people obtain a home loan for a house that they wish to buy and live in, businessmen or investors take home loans for properties that they want to invest in. The reason for purchasing property greatly affects the time available, the interest rate, the home loan tenure, the flexibility of payments and the speed of the housing loan application process.

• Home Loan Process: From the minute you enter a housing finance company with your application or to submit the documents required for your loan, or visit their website to check the home loan eligibility, it could affect the several dimensions of your home loan process including the interest rate, processing charges, repayment support, and a lot more.

• Housing finance companies in India: There are several housing finance organizations that provide home loans. However, opting for the right organization and the right product is extremely important. The interest rate, home loan process, repayment support and other services, vary considerably from company to company. In other words, the key factors of a home loan are dependent on the bank/financial institution where you choose to avail the facility from. Feel free to study more about the organization, research on the potential value and the service standards provided by them to their borrowers before making your choice.

It is imperative to anticipate your financial life well enough to understand the real challenges in the repayment structure and monthly cash flow. The fine print has a set of clauses that could prohibit a borrower from a lot of financial choices. Hence, it is important to read the document carefully, ask for the necessary changes and seek advice from home loan experts that you trust.

Based on your monthly income and the value of the property that you select, finding the best home loan can be a daunting task. Yet it is the most significant decision that would have an impact on your financial future for the next few years. There are three reasons why a perfect housing loan is essential for you:

• A perfect house loan is designed with a suitable understanding of your financial strength and challenges. Is your earning consistent or variable? What kind of home insurance would you need? How much processing fees are they charging? What kind of EMIs and interest rates would fit in your cash flow system? An ideal home loan has an accurate balance of features and services to support your financial state.

• Most of the housing finance companies in India offer home loans for a tenure of 20 to 30 years. The EMIs get deducted regularly from your salary or any other form of income for the specified tenure and hence housing finance becomes a crucial part of your monthly expenses.

• A rushed home loan without the required attention to your personal finance could land you in serious trouble, since the failure to pay the EMIs on time could be disastrous to your financial life and family life.

Hence, you must invest time to completely understand the process of finding the perfect home loan. This process could be long, tedious and exhausting. However, it helps to stick to the sound financial advice of reputed housing finance companies.

• Identify: Before looking for a home loan, most of us need to take a detailed look at our finances. It is a comprehensive process that involves understanding our income, monthly expenses, taxes, emergency and leisure expenses. If you are not easily setting aside an amount that could be roughly equivalent to your potential EMIs, you would need strict financial discipline for your entire loan tenure to effectively pay your loan.

• Search: Reputed housing finance organizations in India offer similar interest rates along with different services and facilities. However, nationalised financial organizations such as banks take significantly longer and impose stringent eligibility criteria as compared to private organizations. Therefore, your search for a perfect home loan could include some rejections, some financial adjustments and a detailed evaluation of your financial health.

• Evaluate and compare: The comparison of existing home loans is imperative in order to understand the features, applicable fees, services that you want to include, and the elements that you must exclude. In the long run, the flexibility of the housing loan and the support of the concerned organization would play a big role in ensuring a comfortable life.

Think well and think comprehensively before making the final decision and signing on the dotted line.

Finding the right housing finance company is perhaps one of the most important aspects during the selection of your home loan. Any individual, who has been trying to get a housing loan, would agree that there are innumerable companies today that provide housing finance in India. Be it nationalised and private banks, finance institutions or home loan brokers – all these offer home loans in this day and age. It could be very challenging to understand the appropriate selection criteria of a reputable and dependable housing finance company in India. Here are some of the benefits that will help you to identify a suitable organization for your home loan:

• Customer friendly: Most of the housing finance institutions in India are driven by rules and regulations. Some of the biggest organizations in India are nationalised banks. They adhere to very strict standards of criteria, processes and documentation. However, a customer friendly organization would reduce the processing and services fees, provide a customized house loan and support the customer during the repayment process.

• Services & features: There are several services and features of home loans that can support the customer requirements well. For example, some organizations offer excellent home insurance products along with their loans. There are other organizations that offer credit cards, loyalty discounts and excellent services as well.

• Faster loan processing units: Some housing finance companies are known for their efficiency while others are known for their delays in the home loan process. This is a very important factor while selecting an organization. A faster loan processing unit would be important for home buyers, who have an urgent deadline. A nationalized bank may or may not be the best choice at this point if the process for the loan hasn’t already begun.

• Negotiable interest rates: The best home loans in India are not the ones with the non-negotiable interest rates. A right home loan candidate would receive an optimized interest rate, choice of floating, fixed or hybrid loan structure, easily accessible documents and the apt tenure. Most loans calculate interest rates on the basis of a customer and his repayment ability. If a strong process is in place, it would help one receive a home loan much faster than usual.

In other words, the organization you choose is the most powerful factor with respect to your home loan. Borrowers should conduct extensive research about the best companies, ask a lot of questions and read the fine print carefully before agreeing to the loan. Speak to the existing customers – the best resource to understand flexibility, repayment structure and the level of support the lender provides.