Home Loan Products:
Most home loan borrowers opt for plain vanilla home loans where they pay a fixed monthly instalment as an EMI. Not many people know that some home loan provider banks and finance companies, in order to increasing the market share, now offer extra features and benefits to customers on home loans. With easy availability of these different alternatives, it is that much more important to make a well researched decision. If you are also looking for a home loan now or in the near future, then this post will help you determine the home loan variant suitable for you.
Some home loan variants and their benefits:-
- Home Loan for Women:
SBI and ICICI Bank offer a discounted rate of interest of 10.10% to women borrowers.
To be eligible under the scheme, in case of SBI, the primary applicant must be female, property must be owned by female (either as sole owner or first joint owner) and a majority of the income used to calculate eligibility must be that of the female.
In case of ICICI Bank home loan, the benefit is available to a female applicant provided she is an owner (sole or joint) in the property. Female does not need to be the first owner and neither should her income necessarily be dominant for calculating eligibility.
- Application Form and KYC
- Income Proof
- Property Documents- New Home Loan
- Additional Documents for Loan Takeover/Transfer
- Typical Accepted Proof
- Longer loan tenure:
Some banks now offer loan repayment period up to 30 years which helps reduce the monthly EMI.
- Home Loan Top Up:
This is a top up loan that is provided by the bank to its present customers. When a home loan borrower avails a home loan from any banks, then after 6 to 12 months, he can avail a top up loan on the same property subject to total loan to value not exceeding 75%. This money can be used for any non-speculative purpose, for home renovation or other personal use.
- Step down loan facility:
When the loan borrower completes his/her repayment for some time, he/she gets an option to reduce the EMI on the home loan. Axis bank empower home loan is one of the best example of this type of loan facility. Axis bank has mainly designed this service for those self-employed people who pay their loan amount monthly without any delay.
- Smart saver or Home credit facility:
Many a time’s home loan borrowers have surplus money but don’t want to prepay the loan as they may need the money in future or for some emergency. With smart saver home credit facility offered by SBI, Citibank and IDBI Bank, the customer can keep his surplus money in the bank and pay interest on home loan on the net difference between the two subject to a threshold. This help borrowers manage their cash flow, keep liquidity and still save interest.