With the rates of the properties and the plots of land soaring high, the option of home loans is considered to be the best by several buyers. This has become quite a worldwide phenomenon. If you have been thinking of buying plots near Pune or even residential plots near Pune, then you must know about the steps to take home loans and how they function exactly.
Home loans can be quite tedious to get as it involves several regulations to be followed. However, with the provision of the home loans, buying your dream house or plot of land can become an affordable reality. Here are some top features of the home loans that you must be aware of before thinking of purchasing plots near Pune. Have a read:
- To start with the home loans, there are two rates of interest over which you can buy home loans. One is the floating rate of interest and the other is the fixed rate of interest over the home loan. In the floating rate of interest, the interest rates for getting the home loan change as per the market conditions. However, in the fixed rate of interest, the buyers usually have to pay a fixed interest rate for the entire tenure of the purchase.
- The home loans are not just for the purchase of a new home. In addition to the purchase of a new home, the buyers can also go for availing the home loan for buying a plot of land or a secondary house for themselves. Moreover, the buyers can also make use of the home loan for refurbishing or repairing the old home.
- Banks can help you in buying your dream plot of land or home with the help of home loans. In addition to this, the banks can also help the buyers in availing the tax deductions for accelerating their purchase. There are several Sections under the Income Tax Act that claim that a borrower can be benefited with deductions on the principal along with the interest part of the home loan.
- There is always a provision for pre-paying the loan to evade the excessive financial burden much before the stipulated time. In addition to this, there would be no requirement to pay any penalty that is charged on the delayed payment of the home loan by the Reserve Bank of India.
- If needed, the buyers can also transfer their home loans from one bank to another. This is done by several buyers to cut short the overall price of the loan. However, in this case, the banks usually charge an extra amount for transferring the home loan to the other bank.
- Usually, the money that is to be paid as the stamp duty and the registration charges are not included in the home loan. These parameters can increase the overall cost of the purchase of the plot or home. In general, the buyers have to pay around 6% as the stamp duty and around 1% as the registration charges. These amounts will have to be arranged by the buyers from his own pocket.