In earlier times, house ownership and the transfer of ownership was mainly between near relatives. With the changing tastes of people, owning personal property became a craze. People with small budgets normally considered moving into a smaller home. With increased incomes and the need for more living spaces especially for the business people, moving into larger homes became a possibility.
Very recently, this trend has changed to a great extent. Through the home loan option, it is now possible to own properties and apartments even if a person does not have the entire money needed to purchase an apartment or landed property. The
Kerala Property sector is now flooded with loans targeting people with any type of need. With little paper work, the banks are now willing to offer loans worth more than 20 lakhs to customers who have the ability to repay the amount within a particular time limit.
However financial experts advise caution due to several reasons. When taking a property loan, a customer needs to work out the various repayment options rather carefully. The best option is go in for loans that have low interest rates and are affordable in the long run. Different banks and financiers follow different parameters in deciding the interest rates for home and property loans.
Some banks cap the upper limit of a home loan according to the monthly or annual income of a customer. Some banks offer about 75 to 80 percent of the cost needed for a particular venture. But with the proliferation of the numerous private banks, some of the leading players now even offer 100% financing. Financial experts always opine that the monthly repayments should not exceed 30% of a customer’s total monthly income.
Owning property – a different way
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