Everyone dreams of having a home which they can call their own. However, with the property rates shooting and touching the sky, it becomes rather difficult to buy a home. Buying a house requires a considerable amount of money which one may not have as savings.
While one has the option to go for a home loan, it is often looked upon as a difficult tool and out of bounds. However, with the right planning and knowledge, one can own the house of their dreams with a home loan.
What is a home loan?
Home loans or housing loans are secured type of loans which are granted by several banks and NBFCs against the house you plan to buy. They provide you with the needed financial aid and are usually given for longer tenure usually ranging between 20-30 years. Different lenders offer different rate of interests on home loans but one can negotiate for the best deal if one has an excellent credit score, income stability and good repayment history.
Eligibility Criteria for Home loans
Every lender has predefined eligibility criteria based upon which they decide the approval of loan application. It is mandatory to abide by these home loan eligibility criteria to avoid getting the loan application rejected. Home loan eligibility calculator helps one to know about their home loan eligibility.
Though all lenders have different eligibility criteria, here are some common points which must be there if you wish to buy your dream home.
- Nationality: Housing loans are available for all Indian residents, Non-Indian Residents (NRIs) and Person of Indian Origin.
- Employment: The applicant must be either a salaried employee or self-employed. Lenders seek this information to know about your repayment capacity. Salaried individuals employed with reputable companies have an edge over businessmen and other salaried individuals working with private companies as their employment reflects their financial stability, timely payment of salaries which means timely repayments too.
- Income: The total monthly income of the applicant should be Rs. 25000 or more.
- Age: Home loan applicant must be between 18 years to 60 years.
- Credit Score: A credit score between 550-900 is considered acceptable for a home loan. Higher the credit score, the better the chances of getting the home loan application approved.
- Work experience: Salaried individuals should have minimum work experience of 2 years.
- Business continuity: Business owners shall have their businesses into operations for at least 3 years.
Read More: How much home loan can you get?
Get Home Loan with Ease
The loan and banking sector are booming with lenders (banks, financial institutions, housing cooperatives, NBFCs etc) who are willing to offer home loans to the borrowers at competitive rates. It thus becomes imperative to go through the terms and offerings of different lenders before zeroing on the one. A home loan is a long term commitment. And if the rate of interest and terms are not comfortable then the loan can become a burden in the long run.
LoansJagat provides an excellent platform where the borrower can compare different lenders off their offerings in terms of interest rate, loan tenure, loan amount, EMI, prepayment charges etc. The borrower can choose the lender which he finds most suitable and can apply for the home loan directly from the LoansJagat portal. Applying for a home loan through LoansJagat involves the following steps:
- Filling up of application form: Once you have chosen the lender, you need to fill the home loan application form which basically involves KYC information and financial details of the borrowers.
- Uploading documents: One needs to submit the documents along with the application form. You can scan and upload the documents online or visit the lending bank’s branch to submit them in person.
- Validating and checking: Once the application form is submitted, the documents and details submitted are validated and checked.
- Loan processing: Once the information and documents have been validated, your loan application will be processed. A dedicated loan representative from Loansjagat will get in touch with you and will take care of the communication between you and the lender.
- Application approval: If all goes well, the home loan application gets approved within a week.
- Loan Disbursal: Sanctioned loan amount is thereafter disbursed in your bank account within 3 days.
Owning a house of your dream is not a distant dream anymore. Work towards your goal by keeping your finances stable and credit score good. Also, remember to save some money for the down payment as home loans do not pay for the whole amount.