Purchasing a home in India is quite a long journey- it takes years of time to just save the required amount of money to buy a place on your own. Further, even after saving every penny that you could possibly find; more than often, you still fall short of cash. However, unlike the earlier days when you didn’t have any other alternative than opting for a high-interest rate loan through a traditional financier; now you can simply contact a new-age financial institution. The banks and NBFCs (non-banking financial companies) offer home loan at way lower interest rates than the ones given out by the traditional financiers and loan sharks. There are also a number of other reasons why you should consider opting for housing loans, and a few of them are here as follows:
· Financial institutions offer home loans for you to purchase a new property or a resale property. You can even make use of the loan amount for home renovation and construction purposes. Other than that, the financial institutions also offer an additional 0.05% discount on home loan rates for women borrowers and co-applicants.
· A housing loan is offered at an attractive rate of interest by the financial institutions. Further, the banks and NBFCs (non-banking financial companies) even provide you with a flexible repayment option. Thus, you can easily plan out and repay the loan amount over a set period of time.
· The financial institutions even provide you with an EMI calculator for free-of-cost on their online websites. Thus, you can easily compute your installments on the basis of the principal amount, interest rates charged by the banks, and the repayment tenure opted by you. A good internet connection and an appropriate electronic device such as a laptop, smartphone, etc. are the only things that you need to make use of this online tool.
But before you choose to apply for home loans in India, ensure that you meet the required criteria set by the banks and NBFCs (non-banking financial companies). The different sets of eligibility criteria set by the financial institutions in India are here as follows:
· You need to be an Indian citizen in the age group of 18 years to 35 years (for most of the financial institutions) to be able to apply for home loans in India.
· The financial institutions also check your income source and job stability to determine your loan worthiness. Therefore, ensure that you have at least spent 2 years at your current place of employment before opting for home loans in India.
· The banks and NBFCs (non-banking financial institutions) also check your credit score and history to access the risk-factor in lending you money. Thus, ensure that you have a credit score of more than 700 before you choose to opt for a housing loan in India. If
you have a higher credit score than you can also renegotiate on the home loan interest rates with the lender.
· The financial institutions also check your repayment history; thus, repay all of your previous and current repayments before opting for home loans in India.