In today’s times it has become extremely difficult for even a middle class man to afford a house. As a result of inflation, property prices have increased to such an extent where many people depend on various banks and non-banking financial companies (NBFCs) in order to pay for a house. With the advent of the internet, it has become extremely easy for people to browse through the various banks and NBFCs which offer home loans.
So, if you are one of those people who are seeking a housing finance, there are many factors which should be kept in mind. These loans can be taken for residential, commercial as well as plot collateral security. They can be used for a wide range of personal as well as business purposes, either as a home loan or loan against property (LAP). They have different tenures, during which a person has to be able to make the repayment.
It has become increasingly popular to apply for these loans online, where many banks and NBFCs offer their services. However, it is important to follow a guide to apply for housing finance. Some of the main factors to keep in mind include:
- Eligibility: Anybody, who is salaried or non-salaried, can apply for these loans. They may be an individual/ sole proprietor/a partner in a business/corporate entity. Making use of the home loan eligibility calculator, which is available online can help a person determine how much of a loan that they may avail.
- Interest Rates & Charges: There are different interest rates that are charged by the various lenders (banks or NBFCs). It is very important to compare these rates. There may be processing fees and foreclosure which are also involved. These rates may vary from lender to lender. The interest rates may fluctuate from provider to provider, but one thing is certain that the higher these rates are, the larger the amount you will have to shell out each month. For example, certain banks may charge an interest rate of 10.25% p.a. or they may even go up to 12.25%.
- What is the loan process? In order to apply for a loan, one needs to submit a loan application along with all the essential documents. Some of these documents may include KYC documents, income documents, proof of residence, etc. There will be official visits that are involved for the purpose of investigation, tele-verification and personal discussion.
- How do I Apply? It is easy to apply for these loans. One can submit all the necessary documents at the bank branch or they may even apply for the same online.
- What are my tenure options? Various tenure options are offered. The tenure of these loans may range from 1 to 30 years. However, this term will not extend beyond one’s retirement age or 60 years.
- What is the maximum loan amount that I can avail? The loan amount is subject to the income level of the person and the valuation of the property. Besides this, other factors such as one’s repayment history, outstanding loans (if any), etc. may also play a role in determining the maximum loan amount that one can avail.
- Can I get a home loan without having a bank account? No, it is not possible to obtain a loan without having a bank account. It is necessary to show a bank statement of the past 6 months.
By keeping in mind these points it will be easier for a person to apply for a home loan, with ease.