Tag Archives: option
What is Home Loans and Benefits of Home Loans
A Home loan is a loan provided by a bank/financial institution to finance the purchase/construction/renovation of a residential property. It is a much sought-after product because often people do not have the required capital to fund their purchase.
Earlier, there was little borrowing and people generally tried to avoid creating debt.Now with the situation having undergone a change, borrowing to create an asset is not only common but in many situations makes good economic sense. A house is generally considered to be an appreciating asset. This is because the price of the property is expected to rise over a period of time. This makes financing of such a purchase by borrowing a good way to own and create an asset without having all funds for the purpose. Financial planners will always advise against taking a loan for undertaking expenditure but encourage borrowing for buying a house.
The prices of houses in India have shot up quite significantly. This makes a full payment for a house from the existing savings a very difficult task for most Indians, creating the need for housing loans. There has been a sharp jump in the earnings for many people but this does not cut the requirement for a loan to purchase a house.
Home loans are typically long-term loans, with repayment periods of up to 20 years. The house financed is mortgaged with the bank providing the loan. There is an option of fixed and floating interest rate when one goes in for a bank loan. Residential property prices India have shot up significantly, so many people have no option but to bank on housing loans. A person earning Rs 5 lakh a year will aspire to own a house that costs between Rs 15 lakh-Rs 20 lakh while someone with a pay packet of Rs 20 lakh a year would like to own a big- ger house in a better locality that costs anything between Rs 75-80 lakh.
The ability to repay the loan over a long period makes borrowing affordable for an individual because it fits the monthly outgo within his/her income.
Here are some advantages of a Home Loan
With real estate prices skyrocketing in most Indian cities, it is not always possible for the average person to purchase a home out of his/her savings. In such a scenario, a home loan is an attractive option for financing the purchase of your dream house.
If you don’t own a house, you are probably residing in a rented property. So instead of paying a monthly rent to stay in a rented house, you might consider paying a home loan Equated Monthly Instalment (EMI) and stay in your own house.
You can also avail of tax benefits on the principal and interest amounts paid by you towards your home loan. This benefit would be in addition to any HRA tax benefit that you might be deriving.
Debt consolidation loans UK: Assists to resolve your debt burden
It is quite unlikely to resolve problems related to multiple debts. If you are bogged down under multiple debts and do not know, how to resolve the crisis, then you can consider availing debt consolidation loans UK. These loans are primarily meant to assist you resolve the problem of debts in a rather convenient manner. Once you have taken care of the menace of debts, it becomes possible for you to make a new beginning.
These are sophisticated loans that are made available to you with beneficial terms. In the case of these loans, what you have to do is to consolidate all your existing multiple debts in to a single debt. By doing so, you are not anymore required to make multiple payments in favour of the multiple lenders. In addition to these, the major area of concern is the high interest rates that are associated with the debts. But, once you have consolidated the debts, you can swap the higher interest rate, with that of a lower interest. Just imagine, the amount of money in the form of hundred of euros that you are going to save and which can be used to serve other purposes.
As for applying and availing unsecured are concerned, you have the option to pick it up in two forms. The secured option of the loans offer a bigger amount and in order to acquire it, you need to pledge one of your valuable assets as collateral. With this option, you will be in a position to avail the funds at a comparatively lower interest and that too for long repayment duration.
Whereas, the unsecured form of the loans gets approved without the need of any collateral. The repayment tenure is short and the interest rate charged is slightly higher than the normal rates. However, on ensuring to undertake a proper research, you do have a chance to avail the best possible deals.
With cheap debt consolidation loans, it is now possible for you to get rid of debt problems in a hassle free manner.