There is a famous saying which goes like this “A home is built by hearts but a house is built of bricks”. But in the current time when the property prices are touching the sky, it is almost next to impossible to even think about a home today. But worry not as now there are various kinds of loans that are available in the market. But the very term ‘loan’ creates a certain degree of doubt in the minds of people borrowing it. Why so? The question may arise but the answer of this question lies in the history of India where both the money lenders and loans are looked down upon. But this lead to a change in the whole scenario as the whole concept of loans too underwent a radical change. This change which occurred in the early 1990’s also changed the entire perception in the minds of people regarding to any type of loan. This was also due to the fact that after that renaissance in the early 1990’s period also brought a flood of money lenders from across the world. These lenders or the lending authorities brought down the rate of interest to such a low level so that availing loan for a common person becomes easier for them.
Going back to the concept of home loans again, but before that it should be quite clear to every person what EMI stands for? Its full form is Equated Monthly Installments. Home loan is a loan that is availed by many borrowers to either reconstruct the home, renovate it or for giving it a facelift. These loans are available in two different versions the secured home loans and the unsecured home loans. In the secured version of the home loan, a loan aspirant is asked to pledge his home as security with the lender. Since there is involvement of asset as security therefore the rate of interest that is charged on these loans is very reasonable. In the other type of loan i.e. unsecured one, the borrower need not to put his home as security with the lender. But then in return he will have to repay it back at certainly higher rate of interest. Today many banks across India, state bank of India, HDFC, ICICI and Punjab National Bank are offering these home loans at quite easy EMI’s which makes it more easier for the borrower to repay these loans back. These EMI’s are calculated only after keeping in mind the monthly expenses of the borrower. So that repaying back becomes much easier. To avail these home loans one should keep certain things in mind. First, the borrower should be above the age of 18 years. Second, he should have the permanent residential proof like PAN card, voter ID card. A bank statement is also a must for the person who wants to avail these loans as easily possible.
Today home loans are proving very helpful in buying the real estate property. It is because today buying real estate property in this country of 100 crores people is considered to be a big deal. Another reason that can be cited for the popularity of these loans is that not many people in this country have enough capital to buy themselves a piece of real estate property. These home loans just provide that. Thus it is quite understandable why home loans are getting popular.