A home loan helps you buy or construct a new house. Most banks offer home loans to their customers. You can repay the amount in EMIs.
However, several questions might pop up in your mind while applying for the loan. There is nothing to worry about.
This article will walk you through everything you need to know while applying for a home loan.
These days, you do not have to go anywhere. If you need a home loan, apply online. It is easy and convenient.
Moreover, the amount will get credited to your account within a few days.
When To Take A Home Loan?
You can take a home loan for the following purposes.
- For buying a new house or a property under construction.
- For buying a residential plot to build your house.
- For renovating your existing house.
- For refinancing your existing home loan.
Eligibility Criteria To Get A Home Loan In India
Your lender will check if you are eligible before granting your loan.
- You must be within 21 to 65 years of age.
- If you are a salaried individual, your minimum income should be Rs 10000.
- If you own a business, your annual income should be at least Rs 2 lakhs.
- You should have a decent credit score.
- You need to have minimum financial obligations.
- Having a stable income for some years will increase your chances of getting the loan.
Also, you can check and calculate your eligibility here
Documents Required To Take A Home Loan
It is the most vital part. Keep all your documents ready. That will ensure the timely processing of the application. You will require the following documents.
- Your identity proof ( voter ID card/ Aadhar card).
- The proof of your address ( electricity/telephone bill).
- Your income proof.
- Bank statement for the past 6 months.
- Salary slip if you are a regular employee.
Check Your Credit Score
Your lender will consider your credit score while granting you the loan. If you have a higher credit score, you will get better bargaining power. You might even secure a loan at a lower interest rate.
Your credit score gets calculated based on your financial history. So, make sure you repay all your loans and credit card bills on time. It will boost your score and increase your credibility with the lender.
Home Loan Interest Rates
Home loan rates in India range from 7% to 13% per annum. The interest rate depends on your lender. Moreover, your credit score also affects your home loan interest rate. Do not forget to compare the rates offered by different lenders before applying. Always go for the lowest rate.
Other Charges On Your Home Loan
Your interest payments are not the only charges on your home loan. The lender takes several additional charges. These include the cost of stamp duty and other processing fees. So, never forget to check the additional charges while applying for a home loan.
Some banks might offer lower interest rates. However, they can have high service charges. That will increase your total financial burden. So, always choose a lender who takes minimum extra charges.
Tenure Of Your Home Loan
Your home loan tenure refers to the time you take to repay the loan. The tenure can extend up to 30 years. However, you can also choose a lower tenure.
On average, people take around 8 years to repay their loans fully.
Well, if you choose a longer tenure, your EMIs will be lesser. But your total interest outgo will increase.
However, choosing a shorter tenure will lead to higher EMIs. And, your total interest payments would also decrease.
So, if you can manage to pay higher EMIs, it is always better to opt for a shorter tenure. That way you can repay your loan earlier.
Home loans can take you closer to buying your dream house. PNB Housing aims to make buying a house affordable for everyone. It offers you attractive interest rates and flexible repayment options.
So, why are you still waiting? Take a step closer to your dreams with home loans from PNB Housing.