The first and foremost thing you should know before applying for a home loan is to know whether you are eligible for availing a home loan or not. In order to check this, one may use a home loan eligibility calculator to calculate eligibility towards applied home loan. There are a plethora of traditional lenders and NBFCs who offers home loan at a lower rate of interest.
You may check your home loan eligibility yourself by visiting their official website by using a home loan eligibility calculator available on their website. Calculating your home loan eligibility using a home loan calculator will help you know how much EMI you need to pay towards your loan applied. In the case, if you have you have some prior loans for which the EMI’s are still being paid, then also home loan eligibility calculator tells the quantum of maximum credit that you would be given. You may turn your dream of buying a home into reality by applying for a home loan after checking your eligibility for a home loan. Checking the loan eligibility is important as no financial institution will lend you in case you are not eligible to avail a loan.
So, it is wiser to check home loan eligibility by using a home loan EMI Calculator online before applying for a home loan with your chosen lender.
Additional Reading:- How To Calculate Home Loan Eligibility By Yourself?
The advent of online technology has made the online process much easier and reliable. It has shaped a lot of industries in modern times and it also includes the banking sector. Not only has it become easier to apply for a home loan but the process has also become faster and smoother as well. Let’s take a look at how technology has helped people to get home loans easily. Firstly, it helps to decide if your loan application would be accepted or rejected. This process used to be manual. Now, thanks to technology, this process is taking place instantly. Banks and other financial institutions can right away point out if you can get a home loan based on their credit policy and other regulations. Next, with the advancement in technology, lenders can now use valuation tools to figure out an estimated value of your property.
Customers can also use these tools to get a better idea of their property. Further, loan application processes are steadily moving online and it is an easier process as well. On top of all this, if you apply for a home loan online, chances are you will get better interest rates and offers. Plus, it’s convenient because you can apply for the loan from any location. Lastly, electronic signatures are helping both the lenders and the borrowers to send electronically signed documents to each other. It saves time as well as money since there is no postage nor traveling involved. Hence, this means that applying for a home loan has become extremely easy with the advent of online technology. Approval takes a really short time so it gives you more time to assess your options.
If you are planning to buy a house then the festive season is the right time to loosen your purse strings. Diwali is considered an auspicious time to buy a new thing like a new house. Buying a home is not an easy time task because it requires a huge investment. Diwali is the best time to buy a new home because most of the banks and NBFCs offers Home Loan on various attractive offers like a lower rate of interest, waive off processing fees, longer tenure and number of EMI options and so on.
On the occasion of Diwali, salaried people got bonuses, incentives etc and most of the people save in the preceding months in order to be splurge during festivals. People believe the Diwali deemed auspicious for buying a property. It is not enough to know the best time to buy a home and take the plunge with a herd. The more important thing is to know how to clinch the best deal at the most opportune time and it will be suggestable to apply for a home loan online as it will save your precious time.
Builders also offer attractive offer during Diwali because many new projects are launched during Diwali with a number of attractive offers. So, these are the reasons which suggest that the Diwali is the best time to a new home by taking a home loan.
Buying a home is a dream for many of us, but due to the high prices, only a few can afford to pay such a whopping amount. In such situations, buyers turn to banks for home loans. However, opting for a house loan is not that easy as the EMIs last for at least a decade and add to the burden for a majority. But, don’t worry, we have listed a few tips that can help you to repay your home loan faster. You can opt for a higher EMI. It will help to reduce the loan tenure which means that the total interest that you’re supposed to pay to the lender also goes down. Further, home loan buyers also have the option to prepay the entire or part of the outstanding loan amount. Windfalls like bonus or maturity proceeds from insurance policies should be used to prepay a part of the home loan from time to time.
Next option is that you can opt for a balance transfer. Under this option, you can transfer the entire outstanding loan amount to another lender at a lower rate of interest and other better terms and conditions. Lastly, you also have the option to maximize the down payment. Making a higher down payment when obtaining a home loan can reduce the principal amount. A lower principal amount means lower interest and EMI payments. So, in case you are struggling with debt-burden, take into account the above-mentioned steps to reduce your home loan interest rate burden. Also, don’t miss your EMI payments as it can severely affect your credit score.
A common dilemma faced by potential borrowers is where to apply for a home loan. Should they go to a bank, or approach a non-banking financial company? Both are financial entities that offer lucrative deals to customers with all kinds of borrowing needs. However, it is important that you should first clearly understand the differences between the two.
One of the major difference is that these two institutions are managed by separate government agencies. While the RBI keeps a check on the banks, the Companies Act regulates NBFCs. No NBFCs offer overdraft facilities. As far as banks are concerned, only a handful few offer overdraft facilities. While choosing between a bank and an NBFC, you should first compare interest rates. Choose the one offering the lowest interest rates with better offers and terms & conditions. Further, a credit score of 650 and above is considered suitable to obtain loans at better interest rates.
However, customers with a lower score may find loans from NBFCs to be less stringent in terms of eligibility requirements. Plus, documents required for home loans are minimum when it comes to NBFCs. The procedure in the case of banks is more cumbersome. State Bank of India (SBI) offers home loan at the lowest interest rate of 8.65% onwards, with special discounted rates for women borrowers. Other banks such as Axis Bank and Citibank also offer home loans at affordable interest rates. Hence, both banks and NBFCs have their advantages and a final decision must be made keeping in mind the interest rates, charges, credit score, and the loan disbursal timelines.
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Home loan is availed for a longer period of up to 30 years and is a big liability, so, it is very important that the loan is affordable. If the loan repayments are unaffordable, then the borrower might end up in a debt trap. In order to assess the affordability of the home loan, you can use the Housing loan EMI calculator available online free of cost. EMI calculator requires three inputs:
Loan amount, the rate of interest applicable and tenure to calculate EMI schedule. There are many benefits of using an EMI calculator: With the help of an EMI calculator, you can estimate your monthly repayments instantly and can assess your affordability.
If you find that EMIs are not affordable, you can reduce the loan amount or increase the tenure to make them pocket-friendly. EMI calculator provides you a complete EMI schedule. You can also see the statement of the outstanding balance of your home loan after each EMI payment.
EMI calculator is very easy to use and you can also compare EMI of different lenders. So, before you apply for a home loan you should use the EMI calculator available online free of cost, to calculate your home loan EMIs and to ensure that they are affordable.
RELATED:How Home Loan EMI Calculators is Helpful for Borrowers?
Hyderabad located in Southern India is a major IT hub, with several upscale restaurants and monuments to visit. With the rapid growth, people from across the country have come down to settle in this city. Growing population has led to an increase in demand for own houses in the city.
If you are looking for a home loan and you don’t have enough funds for same, then you can avail a home loan. There are numerous lenders offering home loan in Hyderabad. Following points will help you in choosing the best loans for you: Interest rates on home loan vary across lenders, so always compare interest rates before applying for a loan. To ensure EMI are affordable and pocket-friendly, use online EMI calculator to calculate prospective EMIs. Home loan is a long-term loan, so it is pertinent you choose a service provider with a good sales history and better customer service to avoid any unreasonable charges later on. Credit score is a measure of creditworthiness. It helps lenders in deciding whether to process your loan application or not. Generally, a credit score of 650 and above is considered good. If your credit score is good, you can negotiate with the lender regarding interest rates being offered and ask for a processing fee waiver. You can apply for a home loan online through online aggregators. For a hassle-free application and approval of your loan keep above mentioned points in mind.