It might be challenging to locate your ideal property, and it might be considerably more challenging to buy it. However, today's lenders and financial institutions give their clients the option of obtaining a home loan in India. The constant monthly payments that borrowers must make until the end of their loan term determine how affordable a home loan is for them. Therefore, when applying for a housing loan, borrowers should take into account aspects like the interest rate, loan tenure, and other pertinent factors.
How to apply for a home loan?
Borrowers can easily apply for a housing loan by following the 3 steps listed below:
Step 1: Go to the home loan area of your lenders' profiles.
Step 2: Complete the online loan application form by entering all the necessary information.
Step 3: press the submit button.
The time it takes for a lender representative to contact a borrower after they submit an online loan application form is usually approximately 24 hours. Following that, borrowers will get a notification of the loan approval via email or their registered contact number.
Benefits of housing loan
Housing loan borrowers may enjoy the following advantages:
Flexible repayment tenor
A housing loan has the longest repayment term of all the many types of loans on the market. A lender may provide a home loan with a 30-year repayment term. Unlike a short loan period with greater monthly installments, this long loan duration results in smaller monthly installments.
Home loan interest rates are significantly lower than those of other loans. A home loan's interest rate can also be impacted by a number of additional factors. Some of these considerations are the borrower's age, CIBIL score, and financial situation.
No prepayment charges
Prepayment penalties are imposed by lenders in the case of other debts. However, there are no prepayment penalties associated with a home loan with a floating rate of interest. Every time the borrower has extra cash on hand, they can use it by making a prepayment on the borrowed money.
Multiple tax benefits
According to Section 80C of the Income Tax Act of India, borrowers are eligible for a deduction of up to 1.5 lakh rupees. Furthermore, Section 24B of the Income Tax Act allows borrowers to receive exemptions of up to Rs 2 lakhs. However, this deduction is permitted during construction and on the interest component.
Balance transfer facility
The ability to shift funds between bank accounts is another advantage of acquiring a housing loan. They can choose a balance transfer option and switch to a new lender who offers better suits their financial situation while still inside the loan duration. Additionally, borrowers can lower their overall loan cost by using the balance transfer feature.
In addition to these advantages, the majority of lenders or financial institutions provide pre-approved loans to their current clients for a variety of products, including home loans and loans against property. These pre-approved offers have the appealing virtue of greatly simplifying and speeding the loan application procedure.
How to use a home loan EMI calculator?
One can utilize this home loan calculator with simplicity if they follow these procedures to the letter:
Step 1: Navigate to your lender's website's section for the home loan EMI calculator.
Step 2: Enter the entire loan amount you wish to borrow and are able to pay back.
Step 3: Decide on the timeframe within which you want to repay all borrowed money.
Step 4: Specify the interest rate at which you intend to repay the loan.
After entering this information, press the "calculate" or "submit" button. You will then be given the precise breakdown of your monthly payments, or EMI, as well as the total amount of interest that must be paid and the principal sum.
In addition to the information already provided, potential borrowers should speak with their lender to learn more about the qualifying requirements for this particular credit type in relation to their homes.