As per a survey conducted by CII and
ANAROCK property consultants, it was seen that 62% of participants felt that
this is the best time to invest in real estate. Factors that have influenced
this decision include ‘work from home’ becoming a new normal, offers and
discounts from home developers, and affordable home loan interest rates.
It has led to scores of individuals
for a housing loan to avail the necessary funding required for purchasing a
house. Consequently, there are several aspects that borrowers should keep in
mind –
Eligibility
Criteria
Prospective applicants should go
through the housing loan eligibility norms specified by a lending institution
to check whether they qualify for a home loan or not. While the exact
parameters may vary from lender to lender, every applicant must meet a few
basic conditions. These have been mentioned below –
●
Applicants must be a residing citizen of India
●
They should have a minimum income of Rs. 25,000
●
Borrowers should be within the age of 23 to 62
years
●
Salaried applicants must have work experience of
at least three years
●
Self-employed individuals should own a business
with a vintage of 5 years or more
Furthermore, if concerned about the
fact “how much home loan can I get” you can use the
eligibility calculator to get a rough idea of the amount you qualify for. Apart
from that, you should also know the factors that can affect your home loan
eligibility.
Home loan
application procedure
After going through the
eligibility criteria, individuals can apply for a home loan via offline or
online mode. To apply online, they can go through the steps below –
●
Select the loan application form from such
lending institution’s official website
●
Fill in the form with all the requisite
information
●
Go through the form to ensure that there are no
errors and submit it along with all the essential documents
Some financial
institutions and HFCs also provide pre-approved offers to borrowers on home
loans and loan against property. Such offers aid in removing hassles and speeds
up the loan application procedure. One can quickly check their pre-approved
offers by entering their name and contact information.
Documentation
During the housing loan procedure,
borrowers need to submit a few essential documents for verification that have
been mentioned below –
●
Passport-sized photograph
●
KYC documents
like PAN, Aadhaar, Voter ID card, driving license, electricity bill, and
the likes.
●
Property documents such as sales deed, receipts
containing the payment history, NOC,
occupancy and possession certificates, and a receipt for land tax from the
revenue department
Features to
look out for
Since housing loans are long-term
financial investments, borrowers should consider all available options
carefully before applying for one. Accordingly, here are some of the features
they should look out for –
●
Customised
tenor
Borrowers should opt for
home loans that come with a flexible repayment period as it enables them to
settle the loan amount more easily.
●
Property
dossier
Several financial institutions and
HFCs provide a ready-made property dossier to applicants when they apply for a
home loan. A property dossier is a customised report that contains detailed
explanations on various financial and legal matters related to owning a
property of one’s own. Such a report will help first-time homeowners gain a
detailed understanding of the difficulties and challenges associated with being
a property owner.
●
PMAY
Pradhan Mantri Awas Yojana
is a Central government housing loan scheme that offers a subsidy on home loan interest rate to eligible applicants.
This scheme can be availed by applying through empanelled financial
institutions. Hence, borrowers should look for lenders that offer PMAY-based
home loan.
●
Online account
management
Borrowers may want to
consider lending institutions that offer online account management facilities.
It will enable borrowers to keep track of their loan account from anywhere and
at any time.
Apart from these features, borrowers
should also go through interest rates and other associated fees charged by lending
institutions before applying. They can also use a home loan EMI calculator to
compare lenders and select an affordable home loan option.
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