The real estate market in 2013 witnessed a number of challenges from high interest rates on housing loans and high property prices; to various other reasons such as the slowing of the economy, salary increments pared to the bare minimum and job losses mounting. There was thus a lower demand for housing, although many builders sought to woo customers with freebies, price discounts, schemes and high amount of bargaining. As a result the index price rose in 15 of the 20 cities that are covered by the NHB (National Housing Bank; i.e. the regulator and financier for the housing sector in India).
Although many different schemes and discounts were offered during the latter of 2013, many seeking home buyers did not respond to the offers as the head of research and Real Estate Intelligence Service of Jones Lang Lasalle India (a financial and professional services firm specializing in real estate services)had claimed that, "When prices are falling and you are getting a good deal, the psychology is to wait for an even better deal to come along". However, real estate prices are expected to correct in certain areas of the country during 2014.
Many home buyers rely on different home loans that are offered by different banks and financial institutions in the country so that they may purchase the house of their dreams. There are also many non-banking financial institutes which also offer these loans.
Furthermore, with the inflating prices of real estate in the country it is becoming increasingly difficult for an average middle class man to afford an apartment of his own; solely based on his own income. Of course, there are many other reasons such as buying a second property for investment purposes or as a vacation retreat.
However, there are many eligibility criteria's which a person has to meet before applying for such loans. Some of these factors include:
• Borrowing capacity: Aptly said "In order to get a loan, you need to prove you do not need it in the first place." One of the most important factors that banks take into consideration is whether you are capable of repaying the loan back to the bank. Banks judge this by taking your monthly income into account (monthly net salary). Very often, the EMI would not exceed 40-50% of a person’s monthly income.
• Age: Age is one of the most important factors that banks pay attention to. It directly co-relates with the eligibility amount and banks often prefer customers to have 10-15 years on their side before retirement age.
• Existing loans and monthly outflows: Besides the other factors, further scrutiny of bank statements and one’s savings account help to reveal outflow towards any loans and a person’s monthly expenses. The amount of expenses should not be above 55-60 % of a person’s monthly income. If it is higher it reduces the loan eligibility.
There are many other factors such as monthly income, number of dependents, educational qualifications & relevant skill-sets, nature of business/profession or the type of industry that you work in, stability of income, whether there are any joint applicants and credit score which also play a major role. These factors may differ as per the lending institute providing the same.
Although many different schemes and discounts were offered during the latter of 2013, many seeking home buyers did not respond to the offers as the head of research and Real Estate Intelligence Service of Jones Lang Lasalle India (a financial and professional services firm specializing in real estate services)had claimed that, "When prices are falling and you are getting a good deal, the psychology is to wait for an even better deal to come along". However, real estate prices are expected to correct in certain areas of the country during 2014.
Many home buyers rely on different home loans that are offered by different banks and financial institutions in the country so that they may purchase the house of their dreams. There are also many non-banking financial institutes which also offer these loans.
Furthermore, with the inflating prices of real estate in the country it is becoming increasingly difficult for an average middle class man to afford an apartment of his own; solely based on his own income. Of course, there are many other reasons such as buying a second property for investment purposes or as a vacation retreat.
However, there are many eligibility criteria's which a person has to meet before applying for such loans. Some of these factors include:
• Borrowing capacity: Aptly said "In order to get a loan, you need to prove you do not need it in the first place." One of the most important factors that banks take into consideration is whether you are capable of repaying the loan back to the bank. Banks judge this by taking your monthly income into account (monthly net salary). Very often, the EMI would not exceed 40-50% of a person’s monthly income.
• Age: Age is one of the most important factors that banks pay attention to. It directly co-relates with the eligibility amount and banks often prefer customers to have 10-15 years on their side before retirement age.
• Existing loans and monthly outflows: Besides the other factors, further scrutiny of bank statements and one’s savings account help to reveal outflow towards any loans and a person’s monthly expenses. The amount of expenses should not be above 55-60 % of a person’s monthly income. If it is higher it reduces the loan eligibility.
There are many other factors such as monthly income, number of dependents, educational qualifications & relevant skill-sets, nature of business/profession or the type of industry that you work in, stability of income, whether there are any joint applicants and credit score which also play a major role. These factors may differ as per the lending institute providing the same.
Every one has a dream of having beautiful home. As one always trouble for their own home due to low financial condition and many other issues. There are number of private financing companies and banks which offer home loan but doesn't specify actual cost of it. It's quite difficult to choose one from thousands. But i heard about Easyloansindia which is an online application and through that one we can easily search and compare cheapest home loan available, car loan and many other types of loans as per ones need.
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