One can get various types of loan offered by financial institutions and banks. There are some formal requirements that one will need to meet before they opt for the loan by the institution or the bank. One of the most common types of loan available is housing loan. Many banks offer the Housing Loan Kampala and the requirements will vary from one place to another. To help one out, this article will take a look at what one needs to know about the housing loans before you opt for it.
Definition of housing loan:
The Housing Loan Kampala is also known as the mortgage home loan by various banks. This is a type of financial product, which will help the people to buy or to complete any of their residential properties or to carry out improvements of the home etc.
Features and interest rate of housing loan:
- The features of this loan will vary depending on the bank which the customer approached to get the loan. There is a maximum time period of the housing loan Kampala and the customer will need to follow a minimum payment period that is defined by the institution or the bank.
- Some banks will also offer a flexible and relaxed interested rate for the Housing Loan Kampala. There is also a minimum age that the person will need to be, before they can get this loan from the bank.
- The person will need to contact the bank to know the monthly payment that will need to be paid to the bank.
It is a big decision to opt for the loan and one will need to be assured to make sure that they will be able to pay for the loan.
One should check the various advantages and disadvantages of opting for the housing loan Kampala and one will need to make sure that they know about these factors to ensure that they are suitable for the loan.
Some of the advantages of the housing loan:
- The individual will be able to get a tax rebate on the interest that is paid by the person or for those who fall in the high bracket of taking the Housing Loan Kampala. is a great option to easily save the tax by simply showing the interest of the loan and this will act as a deduction for the tax when the person is completing the income tax return.
- The interest rate of the Housing Loan Kampala is much lower than any other types of loans, such as personal loans, mortgage loans, vehicle loans etc.
- Another benefit of the housing loan is the capital appreciation of this loan.
Some disadvantages of the housing loan:
- The person will need to keep earning in order to pay the interest and the repayment of the loan. If the person becomes jobless, then the person will easily become a defaulter to the bank because of the Housing Loan Kampala.
- The opportunity cost of the Housing Loan Kampala another disadvantage that one will need to face.
- It is evident that the advantages outweigh the disadvantages easily when it comes to the housing loan Kampala. One will need to contact with the bank to know the requirements to check if they are eligible for this loan or not.