Role of Home Loan Features

Good Loan plans and lucrative schemes simplify the hassle of loan repayment. Home loans have certainly made the dream of owning a house realistic for people. Now, you do not have to plan for years to buy a piece of property. Today, there is no dearth of good finance schemes which are provided by the private, non-banking financial corporations as well as government banks. And, before taking a home loan, it is crucial that you choose a loan plan which has lucrative features. This facilitates easy repayment. However, if an individual does not choose a home loan plan with sensible features and propositions, the loan can quickly turn into a liability at the time of repayment.

It can be challenging to choose a home loan plan with the appropriate features. The finance industry is flooded with different home loan programs. This makes it hard for people to figure out which home loan scheme is the best for you. Your home loan plan must have the following features.

Reasonable interest rates                                                                                 

Home loan interest rates are an instrumental factor in determining the utility and functionality of the loan. Some private and non banking financial institutions lend home loan plans at a very high interest rate. This makes the repayment amount relatively large. So, at the time of repayment the loan becomes a liability. Also, the interest rate also determines the magnitude of EMI.

Equated Monthly Installments

The facility given by banks and other lenders to repay your home loan through Equated Monthly Installments, commonly known as EMIs has increased the popularity of home loans. The home buyer does not need to worry about collecting a large sum of money to purchase property. Home loan limit is determined as per the income size of an individual. The magnitude of EMI is also set as per the income of the loan applicant. Getting access to easy EMI payment is a major factor which would make home loan repayment manageable.

The option of part prepayment

Many banks and financial institutions have started providing this feature along with home loan plans. This feature gives flexibility to the home buyer. Usually, the mandate is that an individual can pay minimum 6 EMIs (or a certain number of EMIs) as part prepayment. People find this option useful since they can plan their finances more efficiently. When they have money in bulk, part prepayment allows them to repay a large part of their loan. This also saves monthly interest.

Home Loan Foreclosure

The condition of finances varies from time to time. Sometimes you have money in bulk while at other times you have to go through a cash crunch. Therefore, loan foreclosure enables you to close your home loan before the completion of the tenure, in case you have availability of funds. It is always good to pay off your debts as soon as possible. And, home loan foreclosure allows you to clear off your home loan and be the real owner of your house, at the earliest.