Affordable Home Loan
Affordable home loan refers to the Home loan taken for housing units that are affordable by that section of society whose income is below the median household income.
Though different countries have different definitions for affordable housing, but it is largely the same, i.e. affordable housing should address the housing needs of the lower or middle income households. Affordable housing becomes a key issue especially in developing nations where a majority of the population is not able to buy houses at the market price.
Disposable income of the people remains the primary factor in determining the affordability. As a result, it becomes the increased responsibility of the government to cater to the rising demand for affordable housing. The Government of India has taken various measures to meet the increased demand for affordable housing along with some developers and stressing on public-private partnerships (PPP) for development of these units.
Avail home loans up to Rs.10 crore with interest rates starting at 8.35% p.a. with additional benefits such as extended loan terms and flexible repayment options. Simple documentation, quick processing, and an excellent customer service with a response time of 30 – 45 minutes makes LoanBazaar a go-to place for all your housing loan needs.
Home Loan Fees And Charges :
- Processing fees : This is a one-time non-refundable fee that is to be paid to the home loan provider after the loan application has been approved. The processing charge varies depending on the bank and the loan scheme you are applying for.
- Prepayment charges : Prepayment charges is the fee you will have to pay the lender if you plan on repaying your home loan before the completion of the loan tenure.
- Conversion fees : Some banks also charge a conversion fee when you decide to switch to a different loan scheme in order to lower the interest rate associated with your current scheme.
- Cheque dishonour charges : The fee is levied when the loan provider find that a cheque issued by the borrower is found to be dishonoured due to reasons such as insufficient funds in the borrowers account.
- Fees on account of external opinion : In some cases, you might want to consult an external expert such as a lawyer or a valuetor for his/her opinion on the loan. This fee should be paid directly to the concerned person and not the lending institution.
- Home insurance : The premium should be paid directly to the concerned company during the term to ensure that the insurance policy is running during the home loan tenure.
- Default charges : Providers also charge a penalty on delayed repayments i.e. if you fail to make your Equated Monthly Instalments (EMIs) or Pre-EMIs on time. The defaulting charges vary from one bank to another.
- Incidental charges : This charge covers for the expenses incurred by the bank to recover dues from a borrower who has failed to make his monthly instalments on time.
- Statutory/regulatory charges : The fee includes all charges associated with Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), Memorandum of Entry and Deposit, and stamp duty. You can visit www.cersai.org.in to know more about these charges.
- Photocopy of documents : The fee is payable to the bank if you require a photocopy of your home loan documents for any personal needs.
- Change in loan term : Some banks also charge a nominal fee if you wish to change the tenure associated with your loan.