So, you have made the big decision of taking a home loan that will affect you in the long term. Buying a home is a very strong dream for a lot of people and this will give an asset whose value increases more than anything else in the market. Other than stocks and shares that are very risky home is a great investment that will give you great returns over time.
In fact, people living in Mumbai and suburbs claim that the houses they bought years ago for INR 1-2 lakh are now worth INR 1 cr. or more. Even if you consider inflation rates over the years this amount of cost increase is a lot compared to any other investment. Other than that your own home gives you a sense of security to you and your family. Buying their own home is like completing a dream for a lot of people and it boosts your confidence level as well.
Eligibility
You also need to find out how much loan you are eligible for. If you are eligible for less amount due to your credit score then you need to put a bigger down payment towards the house.
A home loan is a secured form of loan and hence it has lower interest rates and longer payback periods. Some banks also don’t ask for proof of income when you keep your home as collateral. Home loans are one of the only assets where you can avail loans of up to 90% of its valuation which quite a lot as compared to car loans or home loans. This norm is brought into practice by the Reserve Bank of India and hence it is a trustworthy way for customers to avail of loans.
A home loan is provided to most ages 21 to 75 so it’s available to almost all individuals. They also provide home loans to self-employed individuals, farmers, public and private sector employees, etc.
If income proof is not required then there is no norm for completion of 3-4 years of service. Hence it’s good news for young individuals. People can avail of a home loan for a lot lower than business loans interest rates. Home loan interest rates are as low as 7% and business loan interest rates go as high as 17%. It is mostly a better deal than a business loan and with a business, in work, you can always make money in the greater run. There’s also no need for GST filing for the business and provide value proofs as well.
If proof of income is required then try to apply for a home loan in a bank where you have your salary account already. Banks do have schemes for people who have their salary accounts with them as banks know that you have a monthly fixed income and you will be able to pay back the loan. Make sure to take a loan only when you actually need it as it is a risk to your property nonetheless.
Home loan eligibility criteria
A home loan is a safe way of securing loans when in a financial emergency. Home loans have very basic criteria such as the property papers and basic KYC information such as Adhar card and pan card.
Even though based on the bank or lender you are also asked to provide salary slips, proof of profits if you are self-employed. Some banks and lenders don’t even require employability proof but, these banks generally serve to have higher interest rates for the loan. Very important for self-employed personnel This loan is also useful for farmers, traders, businessmen, etc.
SBI home loan provides home loans at a very reasonable rate; their process is fast and less time-consuming. They also require minimum documentation. They also have fast disbursal. Tenure is provided for up to 30 years. As compared to other banks, the loan approval process is fast.
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