Finding a loving home in a safe neighborhood is every young couple's dream. Furthermore, owning a house becomes a necessity once you enter the familial stage of your life. Investing in a well-equipped property that provides enough space for your kids to grow up in is paramount to creating a harmonious home life.
Whether it's an apartment, a bungalow, or a penthouse, acquiring an abode is an exorbitant affair. Arranging funds from your existing income source and investment pool isn't sufficient to own a real estate asset.
It becomes obligatory to borrow from lending institutions such as banks and Non-Banking Finance Companies (NBFCs) to procure additional resources. A loan is the ideal credit tool to fulfill your housing requirements.
Since each bank designs loan schemes unique to its clientele, it can be confusing and overwhelming to new borrowers. Choosing the right type of loan amount, loan tenure, and rate of interest seems like a complicated process to first-time applicants.
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The following article explains the five best ways to finance your dream house.
Applying for A Home Loan
A home loan is undoubtedly one of the best ways to acquire funds for your housing needs. Most banks and NBFCs offer home loans at competitive interest rates and long tenures, giving you ample time to repay the debt.
Upon assessing your credit history, eligibility criteria, and employment status, you can receive a larger loan to invest in any property you wish to own. As per RBI and Government regulations, financial institutions can grant home loans only up to 80% of the property value. The buyer must pay the rest as a down payment.
Home loan by PNB is the perfect key to unlocking the dream that you and your partner share. Hence, before you apply for a home loan, you must ensure that you have enough money at your disposal to make such a large deposit.
Going for a Loan Against Property (LAP)
When you apply for a loan against property, you agree to pledge your property as collateral in exchange for a loan. A Loan Against Property, also known as LAP or mortgage loan, can be obtained against a residential property or a commercial space. In either case, the loan applicant should possess the documents that prove ownership of the said property.
A mortgage loan is a secured loan. Hence, the interest rate is significantly lower than a personal unsecured loan.
Property documents, ID proof, Address proof, Age proof, and employment proof are some of the documents that are to be arranged beforehand for quick disbursal of funds.
Taking a Home Loan
Most young couples don't have lucrative assets to pledge as collateral to secure a home loan. Here's where personal loans can be helpful.
A home loan is granted based on the borrower's age, CIBIL score, and income source. It serves as the ideal credit instrument to buy or construct a new house since there is no restriction imposed on the end-use of funds. By opting for a home loan, you can receive funds up to ₹40 lakhs and a repayment tenure of up to 60 months.
One of the drawbacks of unsecured personal loans is that they carry sky-high interest rates. To compare the interest rates of a home loan, you can use the PNB home loan calculator.
By use of the PNB home loan calculator facility, you can know your precise installment figure. Knowing your repayment schedule in advance can help you prepare a better income-expense net.
Opting for a Consumer Durable Loan
The utility of a house depends on factors like plumbing, electricity, flooring, and other amenities. To cover these subsidiary expenses, you might want to consider taking a loan.
Consumer durable loans help homebuyers in creating a fully-furnished living space. You can receive a Consumer Durable Loan of up to 5 lakh and repay it within the next three years. Moreover, since a Consumer Durable Loan is at no cost EMI, you save a great deal of money on interest rates.
Applying for an Easy Buy EMI Card
Once you have bought your dream house, it's time to invest in premium home appliances. If you don't plan for these expenses in advance, you may experience a shortage of funds.
An Easy Buy EMI card is the perfect solution to overcome this cash crunch. If you have been a loyal customer of your bank and have a punctual repayment history, you can receive up to ₹5 lakh to buy the finest state-of-the-art appliances for your house at no-cost EMI.
To Wrap Up
Owning a house is the first step toward creating a blissful future for you and your significant other. The process of acquiring funds to fulfill this essential requirement is undoubtedly overwhelming. However, with numerous lending institutions offering varied credit services, you can procure an abode without much hassle.
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