How does A Home Loan Works in India ?
A home loan is the most feasible way to fund the purchase of your dream home comfortably. It offers ample funds for home purchase and has a long repayment tenor too. Further, choosing a home loan that has a nominal rate of interest, value-added features and no hidden fees and charges will make your borrowing experience smooth and worry-free.
So, take a look at the steps that you must take to get a good home loan in India.
Research The Market to Choose The Right Lender
Before finalising your decision regarding a home loan, ensure that you research the market thoroughly and analyse the benefits and features offered by various lenders. Start by comparing the interest rates and move on to exploring the other benefits available to you. Lenders like Bajaj Finserv have various perks attached to their Home Loan such as top-up loan
, insurance, and incentives like a 3 EMI holiday. Simply visit lenders’ websites to make comparing loans easy.
Check Your Home Loan Eligibility
Once you have narrowed down on a few loan options, check your eligibility for each before you apply for a home loan. You can use the Home Loan Eligibility Calculator
to check if you’re a good candidate. Besides, apart from telling you whether or not you are eligible for the loan, this calculator also tells you the amount that you are eligible for. So, using this calculator will help you sift through the loans that you have shortlisted and arrive at the one that offers you the highest sanction.
Make Sure You Have A Good Credit Score
Apart from meeting the listed criteria, you must also have a good credit score
when you apply for a home loan. It indicates that you are responsible with borrowed funds and as a result, you can negotiate more flexible terms with your lender. Whether you seek a lower interest rate or a tenor of your choice, having a good credit score improves your chances of approval and gives you an upper hand.
Understand the Fees and Charges
When applying for a home loan, most lenders expect you to pay several fees and charges in addition to the home loan interest rate. So, before you apply, speak to your lender about what these charges are. Typically, you have to pay a processing fee, foreclosure charge, prepayment charges, EMI bounce penalty, and more. The lower these charges are, the better it is for you. As a thumb rule, it is advisable that you go through the loan agreement to understand the terms and conditions associated with these fees and charges.
Save Funds for Down Payment and Plan Repayment in Advance
Since a home loan is a lengthy commitment, planning your finances in advance will help you repay it in a hassle-free manner. Also, financial institutions expect you to pay a down payment when you want a home loan. As a result, reviewing your finances in advance is important. You can choose to make a larger down payment and make the loan more affordable. Besides, this will allow you to pay each EMI without defaulting.
Keep All Relevant Documents Handy
To avail a Bajaj Finserv Home Loan you will need to submit a few documents that include KYC documents, address proof, identity proof, a photograph, Form 16 or latest salary slips (if you are salaried), Income Tax Returns and profit and loss statements for the past 2 years (if you are self-employed), bank account statements of the past 6 months, and proof of business for at least 5 years (if you are self-employed). Gather these documents beforehand so when you have to submit them, you don’t waste any time. This will speed up your approval process significantly. Here you can see the complete list of required documents for Home Loan
Once you check these measures off your list, you can apply for a home loan online with lenders such as Bajaj Finserv. Apply by filling your details and submitting the online application form
and then wait for a representative to get in touch with you with a pre-approved offer customised for you.