Understanding Home Loan
Every person’s dream is to own a home. Most of us, though, cannot afford to buy the house outright. Taking out a home loan is one of the better ways to get your dream home. To be able to obtain the finest home loans in India, you must first comprehend the many terms related to home loans and then plan appropriately to obtain the best home loan in India through the online medium.
A home loan, sometimes referred to as a housing loan, is a sum of money borrowed from a lender to buy or build a home. Home loans can also be used to expand existing residences. There are various forms of home loans:
- For the buying of a residence
- For the purpose of constructing a residential property
- For the purpose of purchasing land
- For the purpose of home expansion
Things to Consider while Applying for a Home Loan Online
With the current progress in technology, Loan application processes have become completely online. The process is considered by many as much safer because there is no need to visit a physical branch. While the process remains similar, with an online application, it is important to be very careful with the documentation process to avoid delay in communication.
- Visit the loan provider’s website.
- Understand the specifics of the loan being offered, like information about the tenure, the interest rates, etc.
- Complete the Application Process, which includes entering the required loan amount too.
- Submit the necessary documents.
- The application will undergo verification from the lender’s side before the next step is taken.
- Amount of the loanThe principal amount of money you are eligible to borrow for your house is referred to as the loan amount. The amount of home loan you can get is mostly determined by your home loan eligibility, which is determined by a number of factors such as your CIBIL score, employment type, and income, among others. Piramal Finance (PCHF) only requires your documentary proof to determine your home loan eligibility.
- Disbursement of LoanThe quantum of house loan is considered to be disbursed when it is deposited to your bank account after your eligibility and documentation verification has been verified.
- Repayment of EMIsYour Equated Monthly Instalment will begin one month after you have received full loan disbursement. You must repay your house loan in equal, regular monthly instalments to repay your home loan.
- Loan DisbursementWhen you pay your EMIs up until the end of your loan term, you have paid off the principal as well as the interest. Home loans are typically paid off within the tenure or time for which they were obtained, however they might be foreclosed or prepaid. Prepayment fees are not charged in the case of floating interest rates, but they may be charged in the case of fixed interest rates. If you do not prepay your loan, you will be required to make timely EMI payments until your loan term expires, at which point your loan will be closed. That is, your home loan books will be closed.
Do you Qualify To Apply for a Home Loan?
Now that you have understood the basics of how to apply for a housing loan, it is important to check the criteria.
- You must be between the ages of 24 and 65 to be considered.
- Salaried staff must have at least two years of experience.
- Individuals who work for themselves must have at least three years of experience in their current area.
- In the case of NRIs (Non-Resident Indians), they must be salaried employees with at least three years of experience.
What Documents Do I Need to Apply for a Home Loan?
An applicant just needs to submit one or two items from each of the following categories:
- Valid passport, driver’s licence, life insurance policy, birth certificate, PAN card, and school leaving certificate are all acceptable forms of proof of age.
- Voter ID Card, Valid Passport, Driver License, Aadhar Card, and PAN Card are all acceptable forms of photo identification.
- Utility bills, bank statements, property registration documents, property tax receipts, and voter ID cards are all acceptable forms of proof of address.
- Existing loan information will be available through bank statements.
What is an EMI Calculator for a Home Loan?
Due to the large size of most property loans, paying them in EMIs (Equated Monthly Instalments) helps to evenly distribute the loan burden. Manually calculating EMI is often complex, and as a result, people frequently get incorrect findings. An EMI calculator for a house loan is a simple online tool that rapidly calculates the Equal Monthly Instalments required to repay your home loan.
Also Read: All About Top-Up Loan