Congratulations that you have decided to buy your dream home with the help of a home loan! However, since you are first-time home buyers using a home loan, you may have some concepts about it that may not be clear.
In the same context, this short guide will help you know some vital aspects about the home loan. Let’s begin!
What is a home loan?
A home loan is a unique facility offered by banks, non-banking finance companies (NBFCs), home financing companies and more and they provide funds to buy homes. Depending on the type of lender that you may select, you can avail an amount between Rs.20 lakh to Rs.3.5 crore from leading lenders.
If you have the required home loan eligibility, you can easily grab a higher amount as the home loan and get to fulfil your dream of buying a home of your choice.
Home loan eligibility at a glance
You need to prove your home loan eligibility to qualify for a higher amount as the home loan such as:
- The home loan borrowers need to be a citizen of India
- Your age should be under 25-58 years
- You need to be working and should have a work expertise of 3 years or more
Home loan documents to furnish
- KYC documents
- Identity proof
- Address proof
- Recent photographs
- Latest salary slips/Form 16
- Last 6 month’s bank account statements
- Business proofs of 5 years if you are a business owner and applying for a home loan
Use modern-day home loan calculators and become loan confident
Want to know your eligibility for a desired home loan amount? You can use the home loan eligibility calculator available at a lender’s website free of cost and before applying for a loan.
When you are aware that a particular amount will be available as a home loan after using the home loan eligibility calculator, it will help you apply for the same and grab quick approval.
Another online tool that is worth using is the home loan EMI calculator which helps you determine the exact home loan EMI that will be payable after availing a loan. The home loan EMI calculator is available on a lender’s website free of cost.
Home loan features and benefits that you should know
- Higher loan amount – With up to 3.5 crores available as the home loan, you can easily invest it to enjoy buying a small or large home of your choice.
- Flexi loan facility – You can easily withdraw a portion out of the home loan and pay only the interest on the utilized amount and nothing else. The rest of the amount gets adjusted once your loan tenor ends.
- Home loan balance transfer – If you already have a home loan account and paying higher home loan interest rates, you can opt for the home loan balance transfer. It lets you enjoy the lowest home loan interest rate and helps save more.
- Top-up loan – Along with a home loan, you can also enjoy a top-up loan to fund other needs in life up to Rs.50 lakh at a lower rate and longer tenor.
- Longer tenor – You get up to 240 months to repay the loan amount in smaller EMIs.
Online account access – Lenders let you access loan details via their digital customer portals 24/7 and 365 days to track it from anywhere.
The Bottom Line
You are now aware of the most basic aspects of the home loan which can help you apply for it online confidently. Assess your needs and repayment capacity along with your income to determine your loan amount easily by using home loan calculators. All the best.