Shurbhi sharma tiwari/Roorkee Hub
Housing is an industry which is on a boom in today’s context, not because it is a profitable venture but also because as an individual every person wants a shelter that he can call his “Own Dream Home”. In the recent speech of Hon’ble Prime Minister Mr. Narendra Damodardas Modi, he mentioned that he has a dream that every citizen of India should have his own shelter by 2020.
India is a fast developing nation and the enthusiasm clubbed with knowledge on all spheres of life of specially the youth today is commendable.
Housing loan is a vast topic and I would try and cover it up in my forthcoming series of weekly articles starting with the over view of home loan, home loan processing and sanctioning including but not limited to documents required and normal time period for sanction of the loan, benefits of home loan, difference between a home loan and other types of loans such as car loan, personal loan or educational loan, I would also be elaborating on some very important Do’s & Don’ts of the home loan.
– Basic Definition of a Home loan is the debt an individual acquires to make an asset that appreciates in value with time.
– Asset acquired through a housing loan not only appreciates in value but also gives a place that you call your “Own Dream Home”. It is directly connected to a person’s sentiments because of obvious reasons.
– Like any other loan, home loan is also paid in terms of EMI or Equated Monthly Installments to the concerned financing Institution from which the home loan is availed.
– EMI or Equated Monthly Installments comprise of Interest Component and Principal Component in proportion of the financed amount and tenure opted for repayment.
– Amortization or in simple language the principal repayment is a process that differs with different financial institutions.
– Normally, if a home loan is availed for tenure of say 10 years, the initial 5 years is a span wherein interest component is debited on a major side and principal component side is minor or less. My advice would be that, if an individual wants early repayment of his loan, she/he actually would need to work more on the first half repayment period of the loan.
– Income tax rebates are also permissible on the interest component paid under the home loan repayment.
– If the customer is not satisfied with the services of the financing institution, she/he may transfer her/his existing loan from one financing institution to another financing institution, without any issue.
… about Surbhi Sharma Tiwari
Born on May 27 1987, in Roorkee, Uttarakhand. Surbhi had her full schooling at St. Anns Senior Secondary School, Roorkee. She did her Graduation in Electronics and Instrumentation from Invertis University, Bariely. Surbhi did her Masters in Business Administration (MBA) with specialization in Finance from College of Agribusiness Management, G B Pant University of Agriculture & Technology. She is an avid technical writer and has many prestigious project reports and technical articles to her credit. She has over seven years of progressive professional experience in home loans sector. She has been serving HDFC Home Loans in various capacities and locations,
Readers are welcome to submit their quarries to Ms. Surbhi, and she would be glad to answers them. Her mail ID is surbhi_iiet@yahoo.com.
