Even though they are family and friends, one must always take the advice of a legal expert while taking a loan
Taking a home loan can be very tiring since it requires a lot of documents and is time-consuming. From your credit history to your job profile and personal life, everything is scrutinised. And even after you go through the entire process, there’s no guarantee that you will get the loan.
But it’s not the only way you can obtain a home loan, if you have parents or relatives who are capable enough to provide you with financial aid then you might have a chance at getting it.
Here are some benefits of taking a home loan from family, friends or relatives:
1. You are saved from the lengthy paperwork of banks, which makes the home loan process faster.2. You get the loan at low interest because the interest rates are decided by the mutual negotiation between the borrower and the lender.3. Your family or friends know you better so they do not check your credit history, job or personal information4. Both parties can be flexible about the amount and length of time that you want the loan for. 5. Even if there is a delay in repaying the loan, your family or friends give you a moratorium, and not take any action against you
How to take home loan from family, friends
There is no need for any kind of agreement for this sort of loan. Though it is better to take the help of a legal expert whenever you take a home loan from a family member. Keeping it very private can lead to disputes going forward, which can be difficult to resolve.
With the increasing interest of loans in banks, it is better to take a loan from someone you can negotiate the rate with. It helps you get a loan faster and at a lesser interest rate which only helps you save money. Plus family and friends do not have strict rules, unlike banks.