Finance

Applying Home Loan can be Tricky: All You Need to Know

Are you considering to buy a home that you would like to avail using a housing finance or Home Loan? You are on the right track as availing a Home Loan brings to you many benefits. Let’s know some benefits of applying for a House Loan and many more aspects.

What is a Home Loan?

A Home Loan is a unique facility that is provided by leading lenders which can help you get up to Rs.3.5 crores on a lower Housing Loan interest rate of around 8.65% or more. You can also avail of multiple benefits when you apply for a Housing Loan online.

Home Loan Eligibility at a Glance

When you are ready to avail a Home Loan, you also need to fulfil Home Loan eligibility terms and documents required for House Loans for faster processing such as:

  • You need to be an Indian national
  • You need to be a salaried professional whose income should be consistent and have a work experience of at least 3 years or more
  • The minimum loan amount that you can borrow is Rs.10 lakh and the maximum is Rs.3.5 crore

Documents Required for Home Loan

Along with the eligibility, you also need some documents required for Home Loans so that you can furnish it effortlessly such as:

  • KYC documents
  • Address proof
  • Identity proof
  • Photograph clicked recently
  • Last Salary Slips or Form 16
  • Bank account statements of the last 6 months

Home Loan Benefits that You can Pocket

When you apply for a Home Loan, you can also pocket some other benefits other than availing the funds for buying a home such as:

Flexible Repayment Schedules

As Home Loan lasts for a longer duration usually 10 years or more, you can plan your repayment in an appropriate manner. You are also eligible to foreclose your loan before the tenor and also make prepayments to repay the loan faster. However, some lenders may ask you a penalty for enjoying these benefits. However, some of the leading lenders may not charge any amount for availing these benefits. Ask your lender before applying for a Home Loan.

Enjoy Tax Benefits

Availing a Home Loan to purchase a home of your choice can also help you become eligible for some specific tax benefits so that you can pocket some savings. As per the Section 80C of the Income Tax Act, the principal repayments up to Rs.1 lakh are tax deductible and the rule is applicable only to residential property owners. Even the payments made toward interest payment along with even processing fee could be considered as an interest and will come under the deductible from the taxable income.

Select an Interest Rate Type that Suits You

Home Loans come with two types of interest such as – fixed and floating. A fixed Home Loan interest rate means paying fixed EMIs and rate as its interest is also fixed. A variable Home Loan interest rate is dependent on the market conditions and hence you need to repay an EMI as per the prevailing market conditions.

Online Account Access

Some of the leading online lenders let you access their digital customer portals and that enables you to track all Home Loan details online from anywhere and 24/7. Thus, you can also think of applying for online homes and enjoy this feature.

The Bottom Line

With a Home Loan helping you lap up so many benefits, you should avail it as per your financial status and repayment capacity so that you can manage it without hassles.

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