Long Term Tenure In A Home Loan? Good or Not?

Before we directly jump into the decision making factor on what can be decided as the best option for the candidates, let us study some brief description about the basics on home loans and how they take up the role in every individual’s life to serve them better each day.

One more thing that is mostly said is that these kinds of loans come under that type or category of loans which can have the loan period or loan tenure which is nothing but a certain time around which the loan amount or the total cost on the loan has to be paid is given as almost 25+ years on a general basis. Hence it is proved and resulted to be a very big stretch with few points or mostly obligations which are revolving with some of the individuals and the customers. If we can now look at this type of loan period or loan tenure being in connection with the home loans for the homes, all the individuals and the customers should make a note or stick to a point where it is and can be very keen to pay for their monthly EMIs as per what has been agreed by the individual holder of the loan and the bank staff or the lenders of the banks or the NBFCs which come under the financial type of lending institutions. Also, another case in which the individual or borrower has made up his or her mind to look for the safety for their upcoming future days and would wish to make and apply for the foreclosure for their loan for their house, so for this he or she must be able to follow some of the rules and steps to make use of a few things through which they will be in a position to close their loan for the houses a bit earlier than usual.

In case a particular individual has opted for ICICI Home Loan and wants to now apply and opt for a foreclose to their loan related to the house which they have applied for, that is the reason we decided to provide you guys with a few points which can be followed by the individuals in order close their home loan.

The main step which the individuals or the customers should think of and make a point is to apply for a loan associated with their homes or let us say it can be any kind of loan in general which has a shorter loan period or shorter loan tenure associated with it. This is to be thought of as a very important step by every individual who wishes to apply for it because with this option of shorter loan tenure there are many opportunities and various paths in which the candidates will have an opportunity to close their Home Loan. This may in addition to longer loan tenure also provide them with a very simple and quick way through which the payment of the home loan will be sufficient for the candidates and borrowers. This whole conclusion would bring with a certain benefit or advantage without paying high cost on the EMIs.

Therefore every individual borrower or the candidate must also be sure and will have to make it a point to go through the calculations related to their income and think of the position of their families stability according to the income means and only then apply for the home loans. The given above are some ways or tips about how the candidates and the customers can make it a possible way to enjoy their loans as much as it is convenient for them.

Prevent your Personal Loan application from rejection

As a result, knowing your CIBIL score before applying for a loan is ideal. Before applying for a loan, review your CIBIL credit score on a regular basis to see whether there are any discrepancies in your report.

Rejection of a loan has an effect on your CIBIL score.

As previously mentioned, any bank can review your CIBIL credit report as part of the loan application process. A hard inquiry occurs when a bank or credit institution makes a request. Since a hard inquiry lowers your CIBIL score, you should avoid applying for several loans from different banks at the same time, as each rejection would lower your CIBIL score even further. Even, if your recent loan application was denied, do not apply for another loan right away because it will lower your CIBIL ranking.

Rejection of a Loan for a Variety of Reasons

Aside from a low CIBIL ranking, there are a few other factors that can contribute to loan rejection.

Regular borrower: It's simple: if you borrow money often or have several loan accounts under your name, banks are less willing to extend you new credit because they are concerned that your current debt-to-income ratio would worsen. A risky borrower is someone who borrows money on a regular basis, and banks would identify you as such. Your CIBIL credit score and rating could suffer as a result of your continued reliance on credit. With a low CIBIL score, you're more likely to be turned down for a loan.

CIBIL remarks: In addition to your credit history and CIBIL credit score, CIBIL also has a few financial remarks. These remarks or comments may prevent you from obtaining a loan and you must pay back the bank Personal Loan Interest Rate. All of the terms and conditions are listed as remarks and comments if you have missed a payment, demanded favorable loan terms, or paid EMIs after the due date.

Unstable employment: Any type of job insecurity can have an impact on your CIBIL credit score. The inability of your employer to pay you on time, as well as frequent work changes, may all have a negative effect on your loan application. Banks can be hesitant to approve your loan application if you have changed your permanent address many times. Banks only hire lenders who can demonstrate consistency in both their job and their financial situation. Faulty credentials: As we all know, banks and financial institutions, as well as CIBIL, collect financial and non-financial information such as name, age, address, current jobs, and so on as part of the KYC process. This can also cause problems for ordinary people if their qualifications match those of a former defaulter. For instance, if you recently changed your rental address and the previous occupant was a defaulter, the bank could deny your loan application to avoid a forged loan approval.

Joint loan applications: Banks do not consider joint loan applications from sisters and relatives. In the banking industry, joint loans with your partner, brother, or parents are appropriate.

Irregular tax payments: Banks favour prospective borrowers who have filed their ITRs on time for the previous three years. This results in an extensive background with the government and credit rating agencies. Previous loan rejection: If your previous loan application was denied, CIBIL and the bank will retain these details. When you apply for a new loan, your current lender will pull all of this information from your CIBIL study, which may result in a loan denial.

Conclusion: Until authorising Axis Bank Personal Loan applications, lenders consider your credit utilisation ratio in addition to your credit score. The credit utilisation ratio is the proportion of credit you have taken to the credit you have available. Before applying for a personal loan, you can keep this below 30% as a rule of thumb. If your credit utilisation ratio is consistently high, your personal loan application may be denied.

Personal Loan offline and online process

Personal Loan schemes -

HDFC Bank Personal Loan has various schemes -

• HDFC Doctor Loan.

• Banks have special offers for doctors who can acquire the loan at an 11.25% interest rate and should have a CIBIL score of 750 and above.

• HDFC BANK PL for self-employed.

• One has to show necessary proof of Income which are determined before approving a loan.

• HDFC Marriage Loan.

• Marriage involves a lot of rituals and much expenditure. If you’re short on funds, a personal loan can be savvy for you. There are many schemes through which you choose one as per your desire.

• For Government Employees -

This loan is given to Government employees who have a monthly pay of INR 15,000/20,000 and don’t have any adverse credit score.

• For Pensioners -

Pensioners often find it challenging to acquire a loan, but HDFC Bank presents a scheme for Pensioners. The minimum pension amount should be Rs 25,000, and 50% of extra Income such as any other savings or Fds are counted. Tenure of 12 months is given, and a 9.99% interest rate is applicable.

• For NRI -

NRI is often deluded from obtaining loans due to their residency. HDFC bank has a special offer for them where no collateral or security must be submitted at the bank. A document has to be submitted of residence proof, and overseas residence is mandatory.

• Personal Loan process -

The Personal Loan application can be submitted online or in the bank.

Step 1- Evaluate your needs.

You need to evaluate the loan amount you want to avail.

Step 2- Check eligibility criteria.

YOu can visit the bank or else check on their website about eligibility criteria. There are specific criteria abide by the bank for acquiring a Personal loan. The person can acquire a loan of a specific amount based on its eligibility.

Step 3- Calculate monthly instalments.

One should always consider the repayment options before availing of a loan. A massive amount of Debt isn’t easy to pay, so it’s wise to check up the options. You can choose a suitable tenure along with a repayment option as per your paying ability.

Step 4- Loan appeal.

One has to visit the bank or apply online for completing an application for a Personal loan. Netbanking can also be used for completing an application.

Step 5- Documents verification.

Document verification is a critical process in loan approval. Income proof along with Address proof has to be submitted. This checks your background to prevent fraud. HDFC bank disburses the loan amount in the borrowers account immediately. However, for Non-HDFC Bank customers, it may take up to 4 hours for the loan amount to reflect in your respective bank account.

• HDFC Bank Personal Loan advantages.

Personal loans have many benefits and are a secured form of loan to acquire, making them the first choice of borrowers.

1. It can get approved within a short period.

2. One can get a personal loan amount of up to Rs 75 lakh.

3. The borrower can be in touch with bank representatives.

4. Only KYC Documents are required.

5. A loan tenure of 60 months can be given.

6. The low-interest-rate of 9.99% per annum.

7. If you missed out on an EMI, only a 2% penalty from the interest rate is charged.

• HDFC Bank Personal Loan Pre payment options

Prepayment options are given to the borrower to ease the Debt. This option is given to a salaried person only.

• Three options are given over 36 months as follows-

1. 13-24 months- the 4% of the principal amount is applicable.

2. 25-36 months- the 5% of the principal amount is applicable.

3. 36 months or more - 2% of the principal amount is applicable.