How Home Loans Apart From Other Loans?

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How Home Loans Apart from other loans?
2
What is Home loan?

• Home loan is the helping hand in accomplishing
  the dream of ownership of your home. However, you
  can avail any other loan for this purpose but
  along with the loan amount there will be other
  issues as well. So what are the features that set
  housing loan apart from any other personal loan?
  There are many different features such as loan
  amount, loan tenure, rate of interest, security,
  and documentation and last but not least the tax
  benefits.

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Loan Amount

• Let us discuss the features one by one. Tenure of
  home loans is generally more than other loans. A
  loan for purchasing vehicle or for any other
  purpose has tenure of 6 months to 5 years. On the
  other hand housing loan is available for longer
  term ranging from 5 to 30 years. The risks
  involved are high for the lenders. At the same
  time borrower has to plan for the uncertain times
  along with the long repayment period. Loan
  repayment becomes the chronic phenomenon for the
  better part of the borrowers life.

4
Loan amount

• Loan amount availed for any other purpose
  generally lies at an average of Rupees 5 Lakhs
  but it gets higher for housing purpose. In case
  of housing loans Rupees 5 Lakhs is the minimum
  amount and maximum goes into Crores.

5
Tax Deduction

• Tax deduction benefits are available for both
  interest and principal components. It is not same
  for other kinds of loans except education loans
  and that too up to an extent. Tax deduction
  benefits are not liable for the interest paid on
  personal loans. Taking into consideration the tax
  deductibility, rates quoted by the lenders are
  generally higher than the effective rate of home
  loans.

6
Rate of Interest

• Rate of interest is lower for home loans than
  personal loans. Governments support has made
  this sector flourishing due to availability of
  funds. Lending for homes is within the purview of
  the priority sector banks. By enhancing the home
  loan components in their portfolios they can meet
  their statutory priority sector targets.

7
Loan Security

• Housing is the immovable property hence the risk
  element is lower in this. Considering the
  security concerns, nature of housing loans is
  secured.

8
Documentation

• Documentation is generally a cumbersome process
  for all types of loans. In case of housing loan,
  along with residence proof, ID proof, banks
  statements, salary statements and ITR statements
  you need property documents to submit.

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Contact Unified Loans

• Get benefitted from hdfc mortgage loan as the
  loan is available at competitive interest rate
  and hassle free documentation. Prompt approval
  process is the added advantage of banking with
  HDFC with Unified Loans.

10
Unified Capital solutionsA-17, 2nd floorsector
4, NoidaPhone 9289663663website -
http//hdfc.unifiedloans.in/