Are you looking to buy a dream home but are a bit short on funds? Then, you can easily avail a home loan in India. Based on your eligibility for the home loan offers, you can acquire a large loan amount.
Borrowers who have managed a robust CIBIL Score, repayment record and income status can enjoy lower housing loan interest rates. As a result, you can pay smaller EMIs over a longer tenor which may be up to 20 years.
If you want to know about home loan eligibility, maximum loan amount available and benefits, here is a post to help you out.
What is a home loan?
A home loan in India is a funding option offered by leading banks and other lenders. The money that is disbursed as the loan can only be used for the purpose of buying a home. You can get up to 85-90% value of a house that you wish to buy as the loan amount. The remaining 15-20% needs to be arranged on your own. The amount is known as the down payment. The higher is your down payment; the lower will be the housing loan interest rate that you will need to manage.
What is the maximum amount you can borrow as a home loan?
Various banks and NBFCs may have a different maximum loan amount that you can get as per your eligibility. However, many reputed online lenders let you borrow as high as up to Rs.3.5 crore to help you buy any homes. The housing loan interest rate is available at 8.8% onwards by reputed creditors.
Home loan eligibility criteria at a glance
To avail a housing loan, you need to meet a lender’s eligibility criteria. Here are some standard home loan eligibility criteria:
- You need to be a resident of India
- Your age should be under 23-62 years
- You need to be a salaried individual with a professional experience of at least 3 years
Documents required for home loans
You also need to submit some documents required for home loans to complete the eligibility such as:
- KYC documents
- Identity proof
- Address proof
- Latest Salary Slips or Form 16
- Last 6 months’ bank account statements
What are the benefits of a home loan in India?
Other than the higher loan amount, you can also pocket many benefits while applying for a home loan in India such as:
- Flexible tenor
With up to 20 years as the loan tenor, you don’t have to worry about stressing your budget and paying a higher EMI. You can spread the loan cost over a longer tenor and pay in small installments.
- Part-prepayment and foreclosure
If you wish to reduce the housing loan interest rate and loan principal, you can also opt for the part-prepayment facility. You can use the amount received as a yearly bonus, Salary hike or matured investments to make part-prepayments. If you have some extra amount in bulk, you can also foreclose the loan account earlier. You don’t need to pay any charges for making the most of both these facilities.
- Home loan balance transfer facility
If you are paying a higher housing loan interest rate and want to switch the loan account to a lender offering a lower rate, it is possible. You can do that via the Home loan balance transfer facility at a known lender’s website. What’s more, you can also get a top-up loan with it up to Rs.1.5 crore with a lower interest rate and a longer tenor. It can assist in meeting other financial goals in life without restrictions on the usages.
If you are ready to apply for a home loan in India, then you can quickly apply for it online and get one step closer to your dream home.
Bajaj Finserv also presents many pre-approved offers on various financial products such as home loans, personal loans, EMI finance, and business loans and more. They can make your loan procedures hassle-free and less time-consuming.
You can explore pre-approved loan deals now after sharing some basic details such as your name and mobile number.