Loaning

House is a basic requirement of an individual. Every individual dream to have his/her own house. House is requirement, a security for the future as well as a major investment.Loan by Housing Finance Company & banks truly helping the buyers in realiising the dreams of owning a house. In finance, a loan is the lending of money from one individual, organization or entity to another individual, organization or entity. A loan is a debt provided by an entity (organization or individual) to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.

Today, the numbers of housing loan seekers are increasing rapidly. The housing finance companies and banks are lending lumpsum money and charging interest on money lending. The lenders i.e. housing finance companies and banks are very much concerned about the future aspects of repayment of loan. They do not want the lone to default on loan. They want to make sure at the beginning itself whether the applicant would be able to manage his repayment of his loan or not. If an applicant does not satisfy a certain criteria, the lender rejects the proposal straightway.

Therefore, to avoid rejection, an applicant must check his/her loan eligibility before he/she applies for a housing loan. Loan eligibility to the maximum amount depends on the income of the borrower. The borrower should have an idea about his monthly expenses so that he can get an idea about the amount that he can pay as the monthly installment for his loan.

Credit Score is also an important factor for the lenders to see. Lenders want the applicant to have a high credit score. This gives an idea that the applicant does not default much. This track record gives confidence to the lenders for a loan to the applicant.

Applicant’s profession and nature of job also play a deciding role to get loan. A person working with a reputed company is likely to face less difficulties is finding a lender as compared to a person working with a lesser known company. If a person is a constant job hopper, this adds to certain disadvantag for the person.

The lenders offer home loans for construction/purchase of house/flat and also for renovation of existing flat/house. The applicant has to visit the websites of various lenders i.e. housing finance companies/ banks and look into the prevailing interest rate, other services provided for the best deal.