The housing sector in India is experiencing a revival due to factors like affordable prices, offers from developers, and government incentives. Furthermore, RBI’s decision to keep its repo rate fixed at 4%, for now, has also fuelled demand for home loans as more individuals are opting for one to realize their dreams of owning a property.
But, first-time buyers must opt for a home loan only after carefully comparing available options using a home loan calculator. They should also look out for the following features.
Simple Eligibility Criteria:
To qualify for a home loan quickly, borrowers should opt for lending institutions with modest eligibility parameters such as age limit within 23-62 years, salaried applicants with work experience of three years, self-employed individuals with a business of more than five years, the smallest income of Rs. 25,000.
One can likewise use a home advance qualification mini-computer to comprehend the credit quantum they qualify for.
Individuals should look for home loans that need nominal documentation as it will be less time-consuming and hassle-free.
Besides, some basic documents that applicants must keep in handy during the application procedure are as follows:
- Passport-sized photograph.
- Property papers.
- Income proof such as a bank account statement for the last 6 months, salary slips, etc.
- Business existence proof.
- KYC documents such as Voter ID, Aadhaar card, PAN, passport.
Online Application And Account Management:
Prospective applicants may consider opting for a home loan from lending institutions that offer online application procedures and remote account management. This helps borrowers apply for a home loan and keep track of their application status from anywhere. It will reduce hassles and enable borrowers to save significant time.
Furthermore, leading financial institutions in India may extend pre-approved offers to applicants that aid in pacing up the application process. One can quickly check their pre-approved offers available on home loan and loan against property by entering only a few information such as their name and contact information.
Borrowers should consider opting for home loans that come with flexible repayment periods. This way, one can easily choose a tenor according to one’s convenience and financial planning that will ultimately enable them to pay off the loan amount by the due date. They can use an EMI calculator to decide on a tenor that suits their financial plan.
Individuals who are currently servicing a loan and are planning for a home loan balance transfer to another lender to enjoy better interest rates shall look for lenders offering top-up credit facilities. This is an unsecured loan that can available over the existing housing credit amount without satisfying any more eligibility parameters or documentation. Moreover, one can fulfill their urgent needs with a top-up loan as they have no end-use restriction.
Besides the top-up facility, borrowers should also opt for home loans with zero prepayment and foreclosure charges as it will aid in reducing the cost.
Before applying for a home loan, borrowers should also consider using a home loan EMI calculator to compute the monthly installment they can afford without straining their finances. Apart from this, there are other benefits of calculating EMIs before taking a home loan. For instance, borrowers will be able to frame a suitable repayment plan before availing of the loan.
Apart from this, prospective applicants should also read through the terms and conditions set by a lending institution to ensure there are no hidden charges.