Whenever you make a home loan application in any financial institution, then the very first thing that you will be asked by an individual is to provide some kind of the margin money. Now, the thing is that most of the individuals are not all aware about the term margin money. It is nothing, but a home loan down payment that is required to be paid by the individuals in order to get the better rates from the banks.
When a financial institution asks an individual to pay some of the amount form his or own pocket, then very much clarifies the important fact that the bank is not at all ready to fund the entire amount of the loan which has been desired in the home loan application. In most of the cases, the home loan companies ask the individuals for the margin money of 20 per cent of the total loan amount. For example, if the cost of the house or a flat that an individual is looking forward to purchase amounts to Rs 20,00,000, then in that case, an individual will be required to furnish Rs 2,00,000 from his or her own resources. The rest of the amount of Rs 18,00,000 will be provided by the bank in the form of the home loan amount.
So, if an enough amount of the margin money has been provided by an individual to the finance companies, then it is assured that the individual will be paying a very less repayment amount to the banks.
When a financial institution asks an individual to pay some of the amount form his or own pocket, then very much clarifies the important fact that the bank is not at all ready to fund the entire amount of the loan which has been desired in the home loan application. In most of the cases, the home loan companies ask the individuals for the margin money of 20 per cent of the total loan amount. For example, if the cost of the house or a flat that an individual is looking forward to purchase amounts to Rs 20,00,000, then in that case, an individual will be required to furnish Rs 2,00,000 from his or her own resources. The rest of the amount of Rs 18,00,000 will be provided by the bank in the form of the home loan amount.
So, if an enough amount of the margin money has been provided by an individual to the finance companies, then it is assured that the individual will be paying a very less repayment amount to the banks.
0 comments:
Post a Comment