When it comes to Indians, the home is where their heart is. Each person desires to have a place where he or she can call home. Buying a new home is not just another thing for Indian people as it’s once in a lifetime occurrence and all people want a home.
Nevertheless, dreaming about buying one’s dream home and actually buying it are two different things. It is because not all prospective home buyers have the financial capacity to buy their own home using their income and savings.
Nonetheless, people not having enough savings need not give in their dream of having a home. The reason is that you can always avail of a loan from leading online lenders. The challenge is that one single mistake when buying a home can haunt you for your whole lifetime.
Therefore, you have to ensure that you make informed decisions when looking for a home loan. In the context of the discussion, let’s discuss some of the major elements of the Home Loan Guideline in this post. You will be in a better position to make home purchase decisions after going through the whole article.
Quick Home Loan Insights for You
What is a Home Loan?
A home loan is a unique loan facility offered by leading banks, non-banking finance institutions (NBFCs) and home loan financing companies. It is one of the fastest-selling loan facilities globally and India is not an exemption.
If you have the required home loan eligibility, you can easily grab a higher loan amount of up to Rs.3.5 crore. Therefore, you should not hesitate to get a home loan for your new residence because you have the starting point.
The home loan interest rate has gone down in the recent past. Therefore, you can opt for a wider tenor and pay in smaller EMIs. It is one of the cheapest loan products that you can get in India. The facility is exclusively designed for those people who want to acquire a home of their own.
Home Loan Eligibility Criteria:
Lenders want their potential housing loan seekers to qualify for the loan by meeting some standard criteria such as:
- You should be an Indian citizen
- Your age should be between 23-58 years
- You should be working with an experience of not less than 3 years
- The maximum loan amount that you can borrow is Rs.3.5 crore
However, the requirements may differ from one lender to another. It is good to shop around and see the various expectations of different lenders. You have to meet most if not all these requirements before you get a home loan.
If you don’t meet the desired criteria, don’t shy off from far. Feel free to visit the desired lander because they can give you a few exemptions. If not, the lender will tell you what you need to do to help you qualify for the home loan.
The eligibility criteria are not meant to discourage people from taking loans. It is a strategy that banks use to make sure that they reduce their exposure to risk. The lender has the responsibility to make sure that he is not dishing out bad loans. It is a win-win situation because you will be able to able repay your loan will increase your credit score.
Therefore, the conditions will help you to become a better borrower. They are not meant to deny you a loan but make you a better person by improving your credit history.
Documents Required For Home Loan:
Once you have proved your home loan eligibility, you need to furnish some key documents to further process your housing loan application such as:
- KYC documents
- Identity proofs
- Proof of address
- Recently clicked a color photograph
- Latest Salary Slips/Form 16
- Last 6 months’ bank account statements
- Minimum 5 years’ business proof if you are a businessman and applying for a home loan
You have to make sure that you have all these documents in place before you make a loan application. Most borrowers will not grant you a loan unless you have the right documents. Get to understand the requirements of each lender and make sure that you have all the documents.
No one wants the frustration of being tossed left-right-center while looking for a loan. It is good to know all the required documents in advance to avoid any frustrations throughout the entire process. This knowledge will help you to take the shortest time possible to secure the home loan.
It will help in making sure that the whole application process runs smoothly. In case you don’t have any of the documents, start getting them in good time to avoid any form of frustrations. In most cases, you have no choice but to comply with all the above requirements.
Vital Home Loan Features and Benefits
Availing a House Loan can provide you with some amazing features and benefits such as:
1. Flexi Home Loan
You can easily avail an amount out of your home loan limits many times as per your wish within the tenor. The benefit of this feature is that you can pay only the interest as the EMI as the rest of the money is adjusted at the end of the tenor.
2. Home Loan Balance Transfer
If you are the existing holder of home loan account and paying higher Home Loan interest rates, you can pay lower rates. It is possible when you opt for the home loan balance transfer facility. Most people like to take advantage of this feature.
3. Home loan transfer benefits people by offering them a lower interest rate.
You can transfer your loan account from an existing lender to a new lender offering better interest rates. For availing this facility, you need to pay some charges to your existing lender. It is one of the best inclusions in a home loan.
4. Top Up Loan
All existing home loan borrowers are also eligible for a top-up loan at a lower rate, and wider tenor up to Rs.50 lakh to cover all your additional needs. When you know how this works, you will get the most from the home loan.
5. Online Account Management
You can access all your loan information via the digital customer portals of the lenders 24/7 and from anywhere. It means that you will have the status of your loan application process online. Besides, you will know the performance of your loan including the repayment date, due amount, arrears, etc. from the online portal.
6. Wider Tenor
You need not feel the burden of a home loan as you can spread the cost by opting for tenor as wide as 240 months and pay smaller EMIs.
Now that you are aware of the basics of the house loan, you can also apply for it online these days. You will be able to get quick approval and money disbursement in your bank account. It is good to make sure that your home loan is successful upon request. The only way out is to understand the requirements and comply with all of them.
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