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: The minute one thinks of taking a housing loan, the options available and the points to keep in mind always seem to jump at you faster then you can process them or jot them down. It is a daunting task, and is considered the most important purchase ever made by a person. While wanting a loan to purchase an apartment is a small facet of housing loans, the overall gambit of loans available for housing is quite extensive. (A detailed list has been provided in the tables.)
While the credit culture is yet to catch up in India, it has come a long way for the housing loan market itself, which is currently valued at Rs 1,25,000 crore and has been growing at 18% year-on-year since 1999, except for last year where growth was only 7-8%. However, the over market outlook within the industry is still strong, with projections indicating the total disbursement of funds could be in the range of Rs 2,00,000 crore by 2012.
Harsh Vardhan Roongta, CEO, ApnaPaisa Pvt Ltd, told FE, “When one is going in for a housing loan, the first thing one should look out for is if the lender can give you the amount of loan money required to buy the house they want. The second thing as per me is one needs to check if the property they wish to purchase is acceptable and documentation sufficient to procure the loan. This is essential, as in the case of old buildings or under construction buildings, one may not get the loan since the property or area falls under a high risk or non-approved category. With under construction buildings one can get a loan only if the builder is pre-approved via the bank as having a stable enough track record. After all of this is done, one should then look at the rates. Rates are broadly categorised as interest rates and other charges applicable. These charges could include stamp duty charges, legal charges on taking a mortgage, prepayment charges, etc. When one looks at interest rates purely, the fixed rate option seems to me a lot more expensive and hence a semi fixed or fully floating option is a better bet. Say Canara bank recently launched a scheme wherein for loans up to 30 lakh, they would charge 8.25% for the first year and 9.25% for the next four years, after which it varies as...
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