Kids are smart these days. My nephew, who is 12 years old, came to me asking about a housing loan. So my other nephew who is just 16 at the moment started explaining it to him. I was shocked because to be brutally honest I was a big loser at that age. I had heard of the term home loan or housing loan but I didn’t know the nitty gritty of it. But Harsh (my 16 year old nephew) knew way more than I had expected. This is what he explained.
Looking for best home loan deals? Try NoBroker Home loans now What is housing loan?When you go out to buy a house but don’t have enough finances, you reach out to lenders or people who would be willing to give you money. The lenders usually are banks or financial institutions who deal in loaning money to people to fulfil their dreams. What a simple explanation about housing loan, right?
He then further went into details.
To avail housing loans, people need to submit a few documents such as personal identification documents, property documents, bank statements, financial records, government clearances, etc. while filling the loan application. The borrower also agrees to pay the EMI, i.e. monthly payment with interest to repay the loan.
Types of home loansFurther, he explained how many types of housing loans are available.
Home purchase loan
Home improvement loan
Home construction loan
Home extension loan
Joint home loan
Home loan balance transfer
Home loan top-up
My 12 year old nephew then asked if he can apply for a housing loan. And that’s when I interrupted and told him that there are certain rules and regulations. The eligibility criteria to apply for a housing loan says that a person should be of a certain age and must have an income source.
He was disheartened to hear that as he thought he would start early and buy his own house and become the youngest one in the family to do so. Kids I tell you!
Anyway, this whole experience might help you understand now what is housing loan.
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What is housing loan?
usha
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2 Year
2022-04-19T10:48:16+00:00 2022-04-20T10:49:16+00:00Comment
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