Home loans are a suitable financial solution that can make your dream of owning a home come true. These loans offer competitive interest rates and flexible repayment tenures. Various reputed lenders offer these loans which creates a pool of options for one to choose from. Apart from that, one must consider various factors before applying for a home loan. Factors such as total EMI amount, tenure, rate of interest, initial payment or down payment, mortgage insurance, etc. This article discusses various lenders that are offering these loans with flexible terms and competitive interest rates.
Steps to Follow to Get a Suitable Home Loan
A home loan helps to finance the purchase of your home. It’s an essential aid because a normal person may not be able to afford a home fully in cash. However, few individuals know and understand the process of home loans. Here are the steps to follow.
Understand your Requirements
The first step in finding the best home loan is understanding your requirements., how much you need, your repayment capabilities, etc. This understanding helps to select the lender that best suits your needs.
Research Lenders
Once you’ve understood why you need the loan, the next step includes researching various lenders offering these loans. This research helps to select a suitable lender and get suitable loan terms.
Check Eligibility Criteria
Next, one needs to check the eligibility criteria offered by various lenders, as each one of them has different criteria. Select the lender that has easy eligibility criteria so that you can easily be eligible for the loan.
Amount of Loan Offered
Once the eligibility criteria have been compared, check the amount they’re offering for a loan. Various loan apps are offering these loans, just check for the best home loan app and select the most suitable one.
Consider the Cost of a Loan
The cost of a loan includes the interest that will be charged on the loan. Apart from interest, there are some other charges also that need to be considered such as processing charges, prepayment penalties, administrative charges, etc.
Consider EMIs
EMI is the amount one needs to pay to the lender each month. It involves repayment of the principal amount and interest on the outstanding amount. There’s a term called “Pre EMI” which is used for properties that are under construction. In such cases, the loan gets disbursed in stages based on the instalment amount one needs to pay the builder.
Consider Tenures
To find the best home loan one should also consider the tenures offered by different lenders. This is because it helps to reduce the EMI burden. Also, these loans are sanctioned for a maximum period of 30 years subject to the customer’s eligibility.
Required Documentation
Check required documents such as KYC, credit/income documents and property documents. KYC documents will require identity and address proof, income will include submitting salary slips of the past 3 months, etc and property documents will include sell and title deeds.
Benefits of Home Loans
It is important to know the process of obtaining a home loan, but it’s equally important to know what are the advantages of these loans. Here are the key benefits offered by home loans.
Help Purchase Your Dream Home
Buying a home by paying upfront cash can be quite tough for many individuals. Home loans help such individuals to buy a house they want. Various lenders are providing these loans helping get the best loan as per your needs.
Balance Transfer Facility
Another benefit of taking a home loan is that it offers you the facility of balance transfer. A balance transfer means the facility to transfer your home loan to a different lender if they’re offering you the loan at better terms.
Tax Benefits
Home loans are offered with tax deductions on the principal amount and interest paid. One can claim a deduction of up to 1.5 lakhs under section 80 C of the Income Tax Act 1971. An additional deduction of Rs. 2 lakhs is also offered on only the interest part of the loan. However, the deductions can only be availed once the home construction is complete.
Conclusion
Various lenders in India are offering home loans at competitive interest rates. However, considering only interest rates is not enough. One must consider the repayment periods and loan amount limits offered by lenders. Well-known lenders such as Tata Capital can be easily considered for these loans as they offer competitive interest rates and flexible loan terms. So, if you’re looking for home loans consider the various lenders, their interest rates, repayment period etc to avail the best one that suits your needs.
