A home loan is a safe and quick way to avail a home or a property. Gone are the days of staying as a tenant when you can afford to buy your own dream home. However, a home loan is always an expensive one with a financial commitment. If you take a home loan, a good portion of your income is exhausted in paying the EMI monthly. Therefore, before you opt for a home loan it is important to know everything about a home loan.
Home loan interest rate
The home loan interest rate is not fixed, but a variable that is dependent on various factors. Things like eligibility criteria, loan provider, and negotiation skills usually decide the rate of interest. The average rate of home loan interest in the market is around 9% to 15%. It depends on you how well you maintain your eligibility criteria and how wide you research to find an affordable home loan.
How to get an online home loan?
● Check your eligibility criteria.
● Compare all the available home loan options for both banks and non-banking financial institutions.
● Choose the loan provider that offers you an affordable loan.
● Apply online
● Complete your documentation
● Wait for approval
● Get the disbursement
Eligibility of a home loan
● A credit score above 750 is important for you to get a home loan.
● The debt to income ratio should be lower than 30%. If you are applying for a home loan it is better to close off all existing loan
● High income is important or else there are chances of being a default.
● Get a good property. It will be easier to convince the loan provider.
● Job stability is important
● Business revenue and stability needs to be there if you are a self-employed individual
Documentation for a home loan
Identity Proof
● Voter ID card
● Ration Card
● Aadhaar card
● Pan card
● Passport
Address proof
● Voter ID card
● Electricity bills
● Telephone bills
● Water tax
● Mobile Bill
● Property tax
Self-employed documents
● Business address proof
● Property details
● Business License Details
● Income tax returns for the last 3 years
● TDS Certificate
● Balance Sheet & Profit & Loss A/c for last 3 years
● Form 16
Salaried employees documents
● Salary slips
● Form 16
● Salary certificate
Common documents
● Loan application form
● 2 passport size photograph
Property documents
● Permission for construction
● Share Certificate
● Maintenance Bill
● Electricity Bill
● Registered Agreement for Sale
● Allotment copy
● Approved Plan copy
● Property Tax Receipt
● Conveyance Deed
Wrapping up
If you feel a home loan will be a huge burden, it is always better to get a home renovation loan and remodel your home. It is affordable and gives your home a new look.
