The introduction of the MCLR home loan policy by RBI and RERA has resulted in a big change in the real estate market, which has shown a growth of 11.4% since 2017. These marked positive changes hint that now the time is right to make an investment in property. Getting an affordable housing loan will help you complete the purchase of your dream home without a hassle. In order to raise funds swiftly and conveniently, ensure that your home loan application is completely error-free and meets all the requirements of your lender.
Take a look at the steps that you need to follow to choose a home loan in India.
Step 1: Research lenders and understand the type of loan you require
Before beginning the home loan application process, it is important to perform a good amount of research to compare various lenders and their loan offerings. It is also important to analyze the nature of the housing loan you want to avail based on your requirements. Most lenders line-up a host of loans such as home construction loan, land purchase loan, fixed rate home loan, and floating rate home loan.
Based on your requirements, whether it is to finance the purchase of an empty plot, construct a home, or a buy a ready-to-move-in property you can choose the option best suited to you. Further, you can choose the type of home loan interest rates that work for you, be it fixed or floating interest rate
Additional Read: 5 Types of Home Loans That You Can Choose From
Apart from these variants, lenders like Bajaj Finserv allow you to get a Housing Loan as Flexi Hybrid Home Loan, which gives you added repayment flexibility. Apart from getting a sanction of up to Rs.10 crore, you also get to pay interest-only EMIs for the initial 4 years of the tenor when you pick this option. So, you can choose the best option according to your finances.
Step 2: Check the home loan eligibility criteria set by the lender before applying
After you have selected the loan type based on your requirement, visit the lender websites to check the eligibility criteria they have put in place. Instead of applying and facing rejection with numerous lenders on grounds of eligibility, it is always a good idea to see whether you qualify for the loan in advance. With lenders like Bajaj Finserv, you can easily use the Home Loan Eligibility Calculator to see if you qualify based on the mentioned parameters. To use the calculator, you will have to feed in your income, present loan obligations, city of residence, employment details, and your age. You will then be able to see if you qualify and understand the potential housing loan amount you can get too.
Step 3: Understand the paperwork involved and get the documents ready
The home loan procedure in India makes it mandatory for you to submit a list of documents that prove your eligibility and establish the value of the property or land you are buying. Most lenders require you to submit your basic KYC documents such as your Pan card, Aadhaar card, Voter ID, Passport, etc. and your property papers. Along with these, you will have to submit your income and financial documents (like salary slips and bank account statements). Keep them ready in advance so you can apply more easily.
Additional Read: List of All the Documents You Need for a Home Loan
Step 4: Check the home loan interest rates on offer to choose a loan on nominal interest
The affordability of your housing loan depends on the interest rate applied on it. This means that the lower the interest rate, the lower your EMIs will be, and the lower your overall your interest obligations will be. So, before you apply for a home loan thoroughly compare the home loan interest rates available in the market to choose the most competitive one. You can calculate your potential EMIs by using a home loan EMI calculator and plan your repayment in advance.
Step 5: Clarify the repayment terms offered on your home loan
Repayment terms of a home loan vary across lenders. So, choosing a loan on affordable repayment and prepayment terms allows you to repay more conveniently. Choose a lender like Bajaj Finserv to make part-prepayments on your housing loan at low or no charges and even foreclose your loan with ease. Check the other fees and charges associated with your home loan, such as EMI bounce charges or processing fees to ensure that they are affordable.
Additional Read: Home Loan Foreclosure Tips
Now, when you have selected the best lender and an affordable home loan using the above parameters, take a look at how you can easily apply for a housing loan with a lender like Bajaj Finserv.
- Fill up the online application form.
- Pay the processing fees.
- Submit the required documents.
- Get the initial offer and have a personal discussion with the lender.
- Await the verification of your documents.
- Get the Home Loan Sanction letter, read it, and sign it.
- Once you accept the loan offer, your property’s legal papers will be checked by the lender.
- Now you will have the loan amount disbursed to you, directly into your bank account.
Additional Read: How To Get Your Home Loan Quicker With Bajaj Finserv
This is the home loan disbursement process in India, and arming yourself with this knowledge can help you in getting a home loan quickly and conveniently.
Bajaj Finserv brings you pre-approved offers for personal loans, housing loans, business loans and a host of other financial products. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer. Need instant financing? Think it. Done with Bajaj Finserv.
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