The real estate investment in a particular country may not give stable returns every year. The preferred destination for such investment this year may not be the favoured destination next year. It is because this sector is unpredictable. This sector is booming across a number of countries and the prices of real estate property are mounting beyond the reach of the middle income earners. Therefore, investors need to assess the magnitude and range of growth of this sector in their prospective destination and act accordingly.
In a country like India home loan plays a very important role in purchasing a real estate property. The population of the country is over one hundred crore and it is not that easy for the majority of the people of the land to manage a big deal like purchasing a real estate. Here, comes the importance of home loans in India since majority of the population faces the problem due to the lack of sum of money with them.
Home loan comparison by the prospective clients shall enable them to end up with the most appropriate deal offered by various financial institutions in India. This way, the best deal procured can be utilised to purchase a new building or a real estate or revamp already existing building. The home loan is of two categories-- secured and unsecured. When a prospective client applies for a secured home loan, he is required to pledge a property against the loan. The loan amount, its rate of interest and the repaying terms may vary according to the market value of the property pledged. Primarily, a secured home loan underscores that its rate of interest is relatively lower than that of an unsecured loan. Moreover, its loan amount and the repayment period are bigger and longer respectively. The security pledge functions in favour of the potential debtor and the creditor is no exception. It does favour for the lender as well. The asset pledged by the borrower lowers the risk on the part of the creditor against the potential loss of the loan in case the borrower fails to pay off the loan. Thus, secured loans are mutually beneficial for the creditor and the debtor.
On the other hand, when it is an unsecured home loan a client need not pledge any asset against the loan in order to buy real estate property. That is why, there is a lack of security in the unsecured loan. This factor gives a stand to the lender to claim relatively higher rate of interest for unsecured loan. Similarly, its loan amount may be competitively smaller and its repayment period many not be that longer like that of a secured loan. Nevertheless, via home loan comparison it has been found out that each of these category of loans has its own advantages. There are individuals who would not be in a position to pledge an asset for a loan. There are also clients who would not be interested in securing a property despite their capability to do so.
To be eligible for home loan in India to purchase real estate property an individual must be at least 18 years old. The individual must be a citizen of India and to prove it he must bear his voter ID card. Clients must also have the proof of permanent residence and the PAN card does matter here. Applicants must also submit documents that prove the employment status and the sum of the salary of the last six months. In case the prospective applicant is a self employed person, he would also require to submit a balance sheet and profit and loss account of at least last three years.
