Home Loan Bangalore: Types of Interest
Fixed amount Home Loan Bangalore
Home loans allow the repayment in fixed equal monthly installments over the entire period of the loan. The interest rates in such a case are fixed and don’t change with market fluctuations. A fixed rate home loan is excellent for those who are good at budgeting and want a fixed monthly repayment schedule, which is easy to budget and doesn't fluctuate.
Floating amount Home Loan Bangalore
Home loans are tied up to a base rate plus a floating element thereof. So, if the base rate varies the floating interest rate also varies. If the floating rate goes over the fixed rate, it will be for some period of the loan not for the entire tenure. The interest rates will surely fall over a long period and thus floating interest rate brings a lot of savings.
Home Loan Bangalore: Eligibility Criteria
When computing loan eligibility, banks take into account the applicant's age, salary, repayment/credit history, savings, profession, property location, and other loans. Some professions are categorized as negative or risk by the lenders while some jobs fall in the preferred list. As a thumb rule, the EMI for your home loan must not exceed 40 percent of your gross monthly income.
Home Loan Bangalore: Following are other factors helping in evaluation of home loan eligibility
• Nature of Job: Most home financing companies carry a list of 'negative' professions. This can cause a lot of hassles for the individual coming from such professions before being finally getting the loan amount
• Property Location: Likewise, they may consult another list known to carry 'negative areas'. Any individual applying for the loan to get a home in such areas may not be granted the loan by home finance companies. The same is the case with the property falling within the geographical limits as defined by the home financing institutions.
• Personal Details of individual: Personal details of the individual are another factor that is taken into account by home finance companies. It may or may not contain credit history of the individual as per the formalities to be filled with the concerned institution. All these factors help the lenders in deciding the individual's home loan Bangalore eligibility.
