How To Apply For A Home Loan
Owning a home nowadays is a pleasant satisfaction and pride. Every turn of a street smiles with a new home. Raising homes in village, towns become much possible with a help of home loans offered by various financial organisations.
What is a home loan?
While planning to build a home but have low hand cash, one can opt for home loans. Depending on our financial status, assets and eligibility conditions, the loan amount is determined. We can choose either public banks or private institutions. They offer 80-90 % of the quoted loan amount in two or more instalments. This amount is to be paid as EMI along with interest till the loan is fully repaid. EMI is nothing but equated monthly instalments calculated with principal, interest and tenure.Interest rates will be either fixed or floating depending on the type of loan we opted. While opting home loans we have to clear certain things.
How to choose banks?
We can compare banks depending on their interest rate, rules and terms and loan sanction period. One can opt for either public or private banks.
Interest rates of public banks are a bit less than private banks. But they follow stringent norms so the human effort and loan processing time are much high. Those who need loans immediately can choose private banks.
SBI, LIC HOUSING are some of the best public banks for home loans.
Private banks give bit higher interest rates compared with public banks. But they provide tensionless easy documentation to its customers. Processing time also will vary. One thing to keep in mind while opting private bank is the interest and related details.
HDFC, ICICI, AXIS bank are some of the leading private banks to avail home loans.
Some banks also provide flexibility like longer tenure and lower EMI.
One should analyse, compare the terms and conditions, types, interest rates of home loans which are clearly mentioned in the respective bank websites.
Eligibility to avail home loans:
Home loans are available for the persons between 18-70 years of age (Depending bank terms) and the following are eligible.
- Self-employed, salaried individuals
- Pensioners with required minimum income
How to apply?
The applicant should provide their account number and IFSC code of respective bank.
One should provide and need the following,
- Respective bank account
- Application form with signature
- Photo, Address proof, ID proof
- Salary certificate, Salary slip
- Bank statements
- IT returns, Tax statements
- Property mother document
- Approved home plan
SBI Home Loans:
State bank of India is the leading bank in providing home loans. Home loans interest rate starting from 8.35%. Loan capped at 80% of the property value.
It has special concessions to women applicants. It provides different types of home loans to tribal areas, NRIs, Army and Navy professionals.
We can add spouse, family members, parents as co applicants. It avails loans for the purchase of plots for construction, can further extend the loan while building a home in the plot.
HDFC Home Loans:
It’s the top private sector bank in providing home loans. It gives a friendly and convenient approach to its customers and sanctions the amount fast.
There is a special home loan for agriculturists, dairy farmers, horticulturists.
Loan capped at 90% of the property value. Doorstep assistance is a plus. Home loans are available for NRIs in rural areas.
Building homes with loans are risk less as it has an insurance cover. Middle-class housing burden has been lowered with a boon – Home Loan.