When you buy a home, the cost of the property is not the only expense. You also have to pay for closing costs, title insurance, and other expenses that can add up quickly. An escrow account is a tool used by mortgage lenders to ensure that all these costs are paid for properly. If you’ve been considering buying a new home but don’t know if an escrow account is right for you, here are the advantages of EC Home Loan:
Low-Interest Rate
The interest rates for EC loans are very low compared to other loans, such as personal loans and car loans. This means that you will have fewer monthly outgoings on your housing loan. The interest rate offered on this type of loan is determined by various factors such as the amount borrowed, the repayment tenure, and the borrower’s credit score, among others.
No Down Payment Required
There is no requirement for any down payment on this type of mortgage loan because it is provided by banks at an interest rate lower than market rates so that they can recover their money without having to ask for any additional funds from borrowers as they do when they give out normal personal loans. The only requirement here is that you must be able to make timely repayments even if there is a change in your income or expenditure situation due to unforeseen circumstances.
Flexibility
EMIs can be paid in one go or installments according to your convenience and needs. It makes it easier for borrowers to plan their finances better and manage their budgets. If you have more than one property mortgaged against one EMIs, you can pay off only one EMI at a time without worrying about paying all your EMIs at once!
No Income Proof Required
There is no income proof required for this type of loan, unlike other types of loans, such as personal loans or car loans, where you need to show your income source and salary slip to get approved for the loan amount you want to borrow from the bank or financial institution that issues these types of loans.
Faster Processing Time
Getting an EC Home Loan approved is quite fast. You can get your loan sanctioned within ten days after submitting your application form online or at any authorized bank branch across India.
It’s Safe and Secure
An escrow account is a safe place to keep your money while the lender is holding it until the time comes when it will be needed to pay for something like closing costs or taxes on your home purchase. If there is any money left over after these payments have been made, it will be returned to you at closing time. This ensures that no one has access to your funds except yourself and the lender who holds them in trust as they await their use in paying off debts or other items on your list of creditors or expenses.
No Collateral Required
Another advantage of EC Home Loans is that you do not need any collateral or security to avail these loans, unlike other loans, such as personal loans or credit cards, that require collateral before issuing the loan amount to the applicant.
Easy Repayment Options
EC Home Loans offer easy repayment options which can be customized according to your needs. You can choose different monthly installments that suit your budget and income. For example, suppose you have a low income but want to buy a high-value property. In that case, you can opt for a lower monthly installment than someone with a higher income who might want a bigger house with better amenities but will have more money left after paying their monthly installments.
Wrapping Up
In the current scenario, the real estate market is at its peak, and the demand for homes is at its peak. The real estate market has witnessed increased demand and supply in recent times. This is because of the high property prices, causing people to look for other options like EC Home Loans. EC Home Loan is one of the most preferred loan options for people looking to buy a home as it offers many benefits over other types of loans.
