A dream of having a house is the need of everyone who lives in rent. They just want to get rid of paying those rent and have their own house to live without stress and have a relaxing sleep at night. For the purchase they make plans to arrange funds for financial help but these arrangements are not easy because a home doesn’t come at a small penny instead they need at least 20-25 Lakh of Rupees to have a purchase of a good house for which home loan service is available for them from banks and NBFCs.
Home loan Application Eligibility
1) Minimum Age
To avail of the loan, your age requirement is at least 17 and a maximum of 70 years.
2) Monthly Income
Monthly income should be more than Rs. 25000, a government employee may get relaxation.
3) Tenure period
Maximum up to 35 years you can choose which depends on the lenders. But it is advisable to opt for 15-20 years so you can pay the amount as quickly as possible.
4) Interest rate
The home loan interest rate can vary from 6.95% to 12.15% which is already low as compared to other loan services.
5) Employment status
If you are a permanent employee and have spent a minimum of 3 years in the job with continuation then you don’t need to worry about loan approval.
6) Co-applicant
You can manage a co-applicant for you who have a higher credit score if you don’t have enough credit score even if it will help in paying the home loan amount as early as possible.
7) Credit score
Your credit score should be above 650 at least to avail of the loan. Many banks have a 750 of limit but you can do research on the minimum credit score eligibility. If you don’t meet with the required CIBIL score then do some down payments.
8) Bank Approval
Make sure the property and builder both are approved by the banks. Banks always require legal documents about the valuation for the calculation on LTV.
The processing time may be higher than any other loan but the bank has to enquire about the loan purpose. Many scams take place based on home loans which not just tricks lenders also tricks customers too. Even if you know the place well, proper use of researching techniques can save you from extra debt and unknown debts. Possibly one of the best options to choose a lender is PNB Home Loan because they have user-friendly interest rates and charges.
The earliest you pay the loan amount is the beneficiary for you. Many people choose to have a loan for longer tenure periods but if they calculate the amount in sum total they will get the real idea of their expenses which they are going to pay during the tenure.
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