How to Get Easy Loans for Housing Finance?

Home ownership is one of the most common dreams in India. But the real estate prices, especially in metro cities of the country, often discourage most people. A home loan is what the majority of Indians rely upon for fulfilling this dream of being a homeowner.To help the country cope with the economic challenges of the pandemic, the RBI, in its latest bi-monthly monetary policy, has kept the repo rate unchanged at 4%. From 6.25% in 2019, the repo rate has been slashed by 225 basis points in the last couple of years.The rate cuts have reduced the interest rates on retail loans like home loans, making this an excellent opportunity for people to purchase a home. While the internet has made it easier for people to access all the information they need within seconds, most home buyers struggle with finding the best home loan.To eliminate this inconvenience, here is a simple 4-step guide on finding the best housing loan-

One of the most significant advantages of digitalization is that you can now easily compare the top lenders and their loan offerings from the comforts of your home. There is no need to visit multiple lenders to know more about the terms and conditions of their home loan. You can visit the official website of the lender or use a 3rdparty platform for comparing.Focus on these factors to compare home loan providers-

• Interest rate
• Tenure flexibility
• Fees and charges
• Documentation
• Application process

As home loans require a long-term relationship with the lender, it is always better to choose one that is reputed and has been in the industry for several years. Such loan providers offer loans at competitive rates and also have excellent customer service to provide enhanced convenience to their customers.

Once you have shortlisted a few lenders after comparing them online, the next step is to check their eligibility requirements. This can be easily found on the official website of the lenders.As home loans are big-ticket loans, the eligibility requirements are generally stringent compared to other types of loans. Only applicants who fulfil the eligibility criteria of the lender are approved for the loan.With the help of these requirements, the lenders try to minimize the chances of default by only giving loans to people who are more likely to repay the loan on time. The eligibility requirements generally revolve around your monthly income, credit score , existing loans, and age.While these requirements can vary between lenders, here is the typical criteria for home loans-

• Age- 21 to 65 years
• Credit Score- Above 700
• Monthly Income- Above Rs. 25,000
• Employed Status- Salaried or Self-Employed
• Work Experience- 2 Years Minimum

Ensure that you only begin the application process with a lender whose eligibility requirements you fulfil entirely. While it is possible that a lender might adjust these requirements in some cases, fully eligible applicants are generally offered better rates and other facilities.

The eligibility requirements should help you finalize a lender for your home loan. Before starting the application process, you should collect all the documents you’ll need to apply for the loan online or offline. Just like eligibility requirements, the documentation process can also vary between lenders.With most of the top lenders in the country, these are the documents you’ll need-

• Salaried applicants- Latest salary slips, latest Form 16, bank account statement of 3 months
• Self-employed applicants- Proof of business existence, financial statements audited by CA, bank account statement of 3-6 months

• Duly-filled Loan Application Form
• Property Documents (Sales deed, agreement of sale, housing society NOC, occupancy certificate in the case of a constructed house)
• Identity Proof (Aadhar, PAN, voter ID, driver’s license, passport)
• Address Proof (Any of the ID proofs listed above, utility bills)
• Income Proof :

All of these documents can be uploaded online along with the application form or submitted offline by visiting the nearest branch office of the lender.

The lender will verify your eligibility based on the documents you’ve submitted along with the loan application. If the documents are in order and the lender finds you eligible for the loan, your application will be approved. It can take anywhere between 5-7 days to receive the home loan approval.The lender gets to decide the loan amount borrowers are eligible for based on their eligibility. Also, most lenders now offer housing finance of up to 90% of the property value. But this can vary based on the applicant’s eligibility, location of the property, and even the project developer. The remaining amount is to be paid by the borrower as the down payment.If your loan application is approved, the lender will disburse the loan amount to the developer, builder, or property seller. The borrower will receive the loan agreement from the lender with detailed information on the loan, including the monthly EMI amount.

With so many lenders offering home loans in India, first-time homebuyers can find it challenging to choose the best. Follow these simple steps to find the best home loan and fulfil your dream of being a homeowner.Ensure that you check the terms and conditions of the lender thoroughly before signing the loan documents to ensure complete transparency. In case of any queries, prefer getting detailed answers from the lender to avoid any discrepancies in the future.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.