A home loan is a secured loan provided by banks or financial institutions to help individuals purchase, construct, or renovate a residential property. It is one of the most common and affordable ways to become a homeowner, allowing you to pay for your dream home in monthly installments (EMIs) over a fixed period.
At P M Associates, we specialize in helping you find the right home loan tailored to your financial profile—at competitive interest rates with minimal hassle.
Home loan offers numerous benefits to the borrower including lower interest rates, tax benefits, flexible repayment time frame and much more.
Home loans are accessible at lower interest rates than other types of loans. Obtaining a home loan is better than going for any other loan type to purchase your dream property. Housing loans are offered at cheap interest rates since the lenders do not want to deal with missed EMIs and unpaid dues.
The finest aspect about housing finance is that the bank will carry it out if you missed out to determine the property’s validity. Furthermore, while evaluating the house loan documentation, bank employees conduct legal checks to verify that the borrower is not defrauded. Due diligence evaluates areas where the bank approves the transaction and alerts you if your property purchase is risky in any aspect.
People who have mortgages are eligible for income tax benefits. The deduction of income tax is a fantastic benefit of getting a property loan. It is available for the interest paid on a yearly basis. The amount of interest paid is subtracted from the income tax that must be paid.
Another feature that distinguishes a home loan from other types of loans is the payback period. You can request longer payback terms whenever it is most convenient for you. One can stretch the loan repayment tenure up to 25 to 30 years. The monthly instalments decrease as the repayment period lengthens, easing the EMI burden on the borrower.
A housing loan allows you to transfer the remaining loan balance from one lender to another. There could be a variety of reasons for this, including interest rates, service fees, an unpleasant customer experience, among others.
As per real estate data, the cost of properties has been constantly rising over the last decade. According to analysts, the capital appreciation of the real estate properties is significantly greater as compared to the paid interest amount. It therefore serves as a lucrative opportunity for property owners as now they can sell them for a higher profit.
The repayment of a home loan consists of two parts: repayment of the principal amount and the interest rate. When filing income tax returns, these parts are claimed as a home loan interest deduction or a tax deduction.
Banks and finance companies have pre-determined home loan eligibility criteria to verify and provide maximum ease to loan borrowers. Apart from the eligibility criteria, banks look at the applicant’s credit history to establish creditworthiness and repayment patterns.
PAN Card & Aadhar Card
Income proof (Salary slips / ITRs)
Bank statements (past 6 months)
Property documents (Sale deed, Agreement to Sale, etc.)
Passport-sized photos
Employment/business proof
