What is a Home Loan?
Home loan is a type of secured mortgage loan. Banks and NBFCs in Mumbai offer easy home loans to their customers to fulfill their various house related needs. As it’s a secure loan, the property in question is treated as an asset. The property is kept as collateral to the bank/NBFC until the loan is paid in full.
Why take a home loan?
Banks and NBFCs offer home loan in Mumbai for various reasons. One can get a home loan to purchase new home, to purchase an old home/second hand home, to purchase land, to construct a house, to renovate a house, to expand the built house, to purchase a commercial property or to construct a commercial property.
To fulfill all these purposes one need a strong financial backing. One can’t do so by using his/her savings. Thus home loan comes handy. Also a home involves a lot of fund transfer from buyer to seller. Taking a home loan from a bank or NBFC makes this whole process a lot easier.
Features and benefits of home loan:
- Banks and NBFCs offer home loan in Mumbai for tenure up to 30 years.
- The interest rate for home loan in Mumbai starts from 8.95%*.
- Banks and NBFCs offer two types of interest rates for home loan in Mumbai: floating interest rate & flexible interest rate.
- The loan borrower can utilize the property while it’s being kept as mortgage to the bank or NBFC.
- Banks and NBFCs follow the 80-20 rule when offering a home loan in Mumbai. That means the lender offers 80% financing of the required amount and remaining 20% is to be paid by the loan borrower from his/her own pocket. This is also known as a down payment. This proves to be a win-win situation for both as the lender earns profit by charging interest rate and the loan borrower gets to fulfill his home-related needs.
- The documents of the property remain with the bank/NBFC until the loan is paid in full in the given tenure. Bank/NBFC releases the original documents of the property to the loan borrower after full loan repayment.
- If the home loan borrower in Mumbai fails to pay back the home loan in the given time, the bank/NBFC seizes the property. They sell the property to recover the loan amount. If the funds remain after selling the property, they are transferred to the loan borrower.
- Banks and NBFCs charge minimum fees to the loan borrowers for pre-payment of home loan and for late-payment of the home loan.