Must Know before taking a Loan
A loan is considered as a great financial assistance while one is short of money while buying an asset. A person experiences a feeling of joy for the new owning but various concerns are running through his mind alongside. Repayment is the biggest point for the borrower as well as the lender of the loan. Thus, some major facts regarding HDFC home loan have been gathered here.
What is the total cost of a loan?
A loan that you are taking from a bank is the amount of money you borrow in addition to the sum of interest you pay throughout your loan tenure. In case an individual is shopping for a loan he should not look only at the monthly payment that he will be required to make on the loan but also the total amount of interest to be paid. One must be sure enough about the reason behind the loan to be strong enough to justify the extra money he will pay as interest.
How much loan can a person get as per his income and cost of property?
A person's loan eligibility depends on his ability to repay and cost of purchase. These parameters are calculated by the individual's income and the agreement as well as market value of the property. For example a person having a monthly income of Rs. 95,000 then he can get a loan of Rs 50 lacs for tenure of 20 years.
What percentage of the property cost is funded generally?
Banks decide the percentage funding on the basis of the cost of the property. For loans amounts below Rs 75 lacs, banks would fund 80% of the property cost. Whereas, the loan amount of Rs 75 lacs or more are subjected to a funding of 75% of the property cost.
Repayment:
A loan is repaid through Equated Monthly Installments (EMI), the payment a person makes for the loan he has opted for. EMI depend on three factors: loan amount, interest rate and tenure of the loan. It includes contribution to the payment of the principle as well as the interest on the loan amount. While the interest component is majorly paid in the initial stage EMIs, the principle repayment increases with the stage of EMI and interest payment decreases. Today various financial institutions facilitate their customers by offering Loan EMI Calculators. HDFC Loan EMI Calculator is one such facility which makes the EMI calculation easy and flexible.
A person must not fret comparing and understanding home loan details from different banks prior to the borrowing. Instead a loan borrower must do it.
What is the total cost of a loan?
A loan that you are taking from a bank is the amount of money you borrow in addition to the sum of interest you pay throughout your loan tenure. In case an individual is shopping for a loan he should not look only at the monthly payment that he will be required to make on the loan but also the total amount of interest to be paid. One must be sure enough about the reason behind the loan to be strong enough to justify the extra money he will pay as interest.
How much loan can a person get as per his income and cost of property?
A person's loan eligibility depends on his ability to repay and cost of purchase. These parameters are calculated by the individual's income and the agreement as well as market value of the property. For example a person having a monthly income of Rs. 95,000 then he can get a loan of Rs 50 lacs for tenure of 20 years.
What percentage of the property cost is funded generally?
Banks decide the percentage funding on the basis of the cost of the property. For loans amounts below Rs 75 lacs, banks would fund 80% of the property cost. Whereas, the loan amount of Rs 75 lacs or more are subjected to a funding of 75% of the property cost.
Repayment:
A loan is repaid through Equated Monthly Installments (EMI), the payment a person makes for the loan he has opted for. EMI depend on three factors: loan amount, interest rate and tenure of the loan. It includes contribution to the payment of the principle as well as the interest on the loan amount. While the interest component is majorly paid in the initial stage EMIs, the principle repayment increases with the stage of EMI and interest payment decreases. Today various financial institutions facilitate their customers by offering Loan EMI Calculators. HDFC Loan EMI Calculator is one such facility which makes the EMI calculation easy and flexible.
A person must not fret comparing and understanding home loan details from different banks prior to the borrowing. Instead a loan borrower must do it.