Basic guide to applying for a Home Loan
The different kinds of loans are personal loans, home loans, education loans, gold loans, vehicle loans, agricultural loans, overdrafts, loans against property, loans against insurance policies and mutual funds, cash credits, etc.
- Personal loan: is considered one of the most expensive forms of loans because of its interest rates being slightly higher than the others. However, it can be used for various personal reasons and can easily be availed if the necessary documents have been produced.
- Home loan: is the most flexible form of loan because it has lower interest rates and is extremely affordable. It helps people in putting a step forward towards reaching their goal to their dream house. They operate under a home loan EMI system. Several banks offer various products under the home loan.
- Education loan: Many children have aspirations and dreams of going outside their homes; they would want to explore the world, they would want to go to universities at one corner of the world and study. What is stopping them? But an education loan helps these students reach new heights in life.
There are 2 ways in which one can avail of a home loan. Those are:
- Online method
- Offline method
However, the basic process of applying for a home loan is:
Step 1: You have to go to your nearest bank or fill in the application form for the required loan and the bank of your choice. You have to make sure that whatever information you are filling in your application form is accurate and there are sufficient documents. You would have to pay a Home Loan Processing fee.
Step 2: CIBIL Score Check. After going through your application form, it is the bank’s duty to assess your credit score, which is also known as the CIBIL score. If you have a decent CIBIL score of 700 and above, you are eligible to apply for the loan.
Step 3: Submitting the documents asked for. These include bank statements, tax returns if the applicant is self-employed, identity proofs- aadhar card, PAN card, etc. and passport size photographs.
Step4: After the submission of all these documents and forms. The bank assesses the applicant’s background thoroughly before approving the loan. If they feel the applicant meets the eligibility criteria set by the bank.
How do we decide on whom to borrow the money or from whom to take the home loan? The answer is quite simple. There are a few factors that need to be considered before deciding on who your lender is going to be.
Offering lower interest rates- If they offer low-interest rates when compared to everyone else in the market offering the same product, then this could be the right choice of a lender that you are going to make. If you want to check affordable loans, you could check out Home loans in Axis Bank.
Lower processing fees- so some banks or lending institutions have a minimum payment that you are required to pay for them to process your application form for the loan. Faster services- At the end of the day, we just want our work done first and as soon as possible. So one of the most important factors that should be looked at when looking for a lender for your loan should be fast services.
Conclusion: These are everything that one needs to know before thinking about applying for a home loan and in general need to know about a home loan.
Must Read:- Home loan available offline or online?
