Home is one of the basic necessities for every human, but possessing a home of his own is a dream for many people particularly for the average families. Today it is possible for most of the people in the country to full fill their dreams through home loans. The reasonable interest rates have increased the demand for home loans.
Interest rates on home loan depend on certain factors like the tenure or the time period for which the loan is taken, in India the maximum tenure is twenty five years this might vary according to the lenders. The interest rates also depend on the amount of loan borrowed and the type of house that is purchased.
The interest rates might differ according to the different loan policies offered by the lenders, the interest rates of public and private sector players are different and some lender lower the interest rates during festival seasons. The maximum amount of loans offered excluding the cost of land is 85% of property value.
There are two types of interest rates regarding home purchase loan namely Fluctuating Interest rates and Fixed Loans Interest Rate. Fluctuating interest rates keeps changing according to the prevailing market rate which is called the prime lending rate. Fixed loan interest rates are fixed they do not change irrespective of the market rates or any other factors.