Tips to keep in mind while applying for a home loan
A home loan offers you the chance of owning a residential property and building an asset while at the same time enjoying tax benefits. You have to pay a certain percentage of the property cost, usually up to 20%, out of your funds. The loan amount can be repaid over a fixed period as per your convenience. Both the principal loan amount and the interest repayment are eligible for tax deduction under Income Tax laws. A home loan application can be done at the bank branch, loan processing centre or online. Let us look at some tips to keep in mind while applying for a home loan
- Tip 1Be sure about how much you can afford through Equated Monthly Instalments (EMIs) because a home loan is a long term commitment. Deduct all your expenses, including other loan and credit card repayments from your take-home pay, to know how much you can afford as home loan EMI. Generally, banks allow EMIs up to 40% of your take-home loan salary.
- Tip 2If you apply for a high amount, the bank may not approve your loan. Also, once you know the loan amount you are eligible for you can plan for the rest of the down payment accordingly.
- Tip 3It is advisable to apply for a home loan at a bank where you already have a banking relationship, such as a savings/salary account, a car loan, a personal loan, etc. If the bank already knows your credit history and personal details such as employer, salary, etc, then the bank has to spend less time for the Know Your Customer (KYC) procedure.
- Tip 4In most cases, the bank will look favourably at a customer with a good repayment record and high credit scores and may offer faster approval and disbursal, or flexible repayment schedules or lower processing charges. In some cases, the bank may offer a lower interest rate on the home loan.
- Tip 5Ensure that the project where you are buying your house has all regulatory and environmental clearances in place. Or check if your bank has listed of approved projects of if your project is approved by your bank. This will also help faster approval of your home loan application.
- Tip 6If you need a higher loan amount but your salary does not permit it, take a joint loan with your spouse/parent/sibling. You could also opt for a longer tenure loan. A longer repayment period means a lower EMI and thereby lesser burden on your monthly finances.
How to apply for a home loan?
Home loan applications generally follow a process such as:
Application: You will need to apply for a home loan, this can be done online or at bank branches/loan centres.
Loan Sanction: Post submission of your application and review of necessary KYC and documents of financial stability, the bank shall sanction your loan amount.
Review: Once the loan is sanctioned, you will need to submit the documents pertaining to the property against which your loan is sought, for technical and legal review.
Approval & Disbursal: Upon validation of your loan amount and the property sought, the bank shall approve and disburse your loan.
With the right documents and prompt follow-up, you could have your Axis Bank Home Loan Approved in 15 days!
How Does a Home Loan Work?
While many of us dream of becoming homeowners, not many have achieved the dream owing to the rising property prices. Luckily, taking a Home Loan can help us get access to a lump sum amount easily and own the house of our dreams. Once availed, we can also repay the amount in small, affordable EMIs without straining our personal finances. Here is how a housing loan works –
Loan Amount- Loan amount is the principal amount of money that you are eligible to borrow for your home. The Home Loan amount that you can borrow will largely depend on your Home Loan eligibility calculated on the basis of several factors – CIBIL score, employment type, income, among others. To determine your Home Loan eligibility, all we will need is your documentation proofs.
Loan Disbursal- A Housing Loan amount is said to be disbursed when the amount is transferred to your bank account after checking your eligibility and documentation proof.
EMI Repayments- A month following the day on which you received full loan disbursement, your Equal Monthly Instalment will start. To repay your Home Loan amount, you need to shell out equal, fixed amounts on a monthly basis to repay your Home Loan.
Loan Closure- A loan is closed when you pay your EMIs up until your loan tenure, paying off the principal amount and the interest. Generally, Home Loans are to be paid off within the tenure or term for which they were taken but foreclosure or prepayment of Home Loans can be made. In case of floating interest rates, no charges will be applicable for prepayment but in case of fixed interest rates, charges may apply.
If you do not prepay your loan, you will have to faithfully pay your EMIs up until your loan tenure is over following which a loan closure will take place. Meaning, your books of Home Loan will be closed.
Are you Eligible for a Home Loan?
Your home loan eligibility will be determined based on the following criteria –
You must be between the ages of 24 and 65
Salaried employees must have a minimum salary of Rs. 30,000 and at least two years of work experience
Self-employed individuals must have at least three years of work experience in their current field
In case of NRIs or Non-Resident Indians; they should be salaried individuals having at least three years of work experience
What are the Documents Required to Apply for a Home Loan?
Documents Required for all Home Loan Applicants
The following are the accepted documents for a Home Loan application. An applicant needs to produce only one/two from each of the following category –
Age Proof – Valid Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card, School Leaving Certificate
Photo Identity Proof – Voter ID Card, Valid Passport, Driving License, Aadhar Card, PAN Card
Address Proof – Utility Bills, Bank Statements, Property Registration Documents, Property Tax Receipt, Voter ID Card
Business Proof – Registration Certificate for Commencement of Business, your Business Profile on letter head, copy of the last two years’ Income Tax Returns
Income Proof – Last six months’ operative current account statement, copy of the last three years’ P/L Projection Statement, Bank Statements for the last six months of CC, OD facilities (if taken)
Existing Loan Details – to be provided via bank statements
Processing Fee Cheque – to be issued from your business account
Read on to know more about the Eligibility and Documents required for Home Loan
What is a Home Loan EMI Calculator?
Since housing loans are generally huge amounts, paying them in EMIs or Equal Monthly Instalments helps in evenly distributing the loan burden. Calculating EMI manually is often confusing as a result of which people often end up with the wrong results. A Home Loan EMI calculator is a simple online tool to instantly calculate the Equal Monthly Instalments that you need to make to repay your Home Loan. A Home Loan EMI calculator can give an accurate answer within seconds.
What are the Advanatges of Getting a Home Loan?
Home is a good investment for your future
Home buying is not just fulfilling your immediate need, but it is also a good investment as the property value increases over the years. Whether it is a plot, home or apartment you want to invest in, it will provide better returns over the course of time. This is one investment that will continue to pay dividends for the rest of your life.
Fix anything that’s broken
Over the years, even the best of homes end up suffering through a little wear and tear. Show your home a little love and fix all the little leaks and creaks through Home Loan.
Upgrade to make it Eco friendly
A lot of home owners now upgrade their homes in an effort to reduce their carbon footprint. With just a few upgrades, you will be setting a great example for your children and neighbours.
Because you deserve a place to express yourself
Your home is where you and your loved ones find a sanctuary away from the hustle of the outside world. Why would you want to compromise on that? Turn your children’s room into a fantasy playground or get yourself more space by adding a room.
How to Apply for a Home Loan?
You can reach out to us in various ways to apply for a Home Loan:
You can easily apply for a housing loan online by just filling up your basic details.
Visiting our Branch
Another way to apply for a Home Loan is to visit one of our country-wide branches and our executives will walk you through the entire process.
Through the phone
Applying for a Home Loan with Tata Capital is just a phone call away! Simply contact us at 1860 267 6060 and we will guide you through the process.
Through a Virtual assistant
You can even apply for your Home Loan with the help of a loan processing virtual assistant.
Here’s how to get a Home Loan from Tata Capital online:
1. Access the digital application form here. It will take you nearly 10-15 minutes to finish the form.
2. Upload the copies of the requested document proofs. This will be followed by a verification process.
3. Our experts will carry out property inspection and give on spot approval, which is followed by housing loan sanction.
4. Finally, get the required finds directly in your bank account.
How to Calculate Home Loan EMI?
There are numerous factors that decide the EMIs on your Home Loan, from applicable rates of interest, type of interest, principal loan amount, loan tenure, EMI facility, among others. The best way to understand your monthly liabilities is to rely on a tool called home loan EMI calculator. It simply asks you to input details of your loan and provides an accurate EMI prediction for the entire tenure.
Now you can save the hassle of manual calculations and easily estimate your monthly instalments using a home loan EMI calculator online.
With over 30 years of industry expertise and customer trust behind us, we offer home loans tailored to your budget and at low interest rates. Whether you are looking to buy a home, build one, or renovate one, PNB Housing’s efficient and easy housing loan can help you get there.
Advantages of PNB Housing Home Loan
Attractive Interest Rate
With PNB Housing, taking a home loan and repaying it as easy as it sounds on paper, thanks to home loan interest rates starting at as low as 6.75% per annum for both salaried and self-employed.
Loans for Everything
A home loan shouldn’t only be restricted to the purchase of a new home. As such, PNB Housing provides seamless and quick loans for everything from home purchase to renovation to construction and home extension.
Home Loan up to a 30-Year Tenure
Longer-term loans allow customers to pay lower EMIs each month and pursue other goals. PNB Housing offers customers 30-year housing loans (up to the age of 70) and 20-year tenure for Non-Home Loans.
PNB Housing promises to alleviate the initial financial burden of downpayment. PNB Housing can sanction and finance up to 90% of the house value (percentage funding depends upon the loan amount), implying you only have to arrange money for the remaining 10% to have a dream home finally.
Low Processing Fee
Where most financial institutions and entities are charging 1-2% of the home loan amount as a processing fee, PNB housing charges 0.5% of home loan.
Customer-Friendly Features & Convenience
PNB Housing home loan offers personalized doorstep services and post-disbursement services via an online customer portal and customized eligibility programs to ensure that our customers have a hassle-free loan experience.
Personalized Loan Eligibility Programs
PNB Housing’s goal is to help customers get the most out of their loans. For this, it has devised many surrogate programs to meet customers’ needs.
Online Application Processing
PNB Housing has released a digital customer onboarding platform, Ace Portal, that automates the end-to-end loan onboarding process, including loan information collection, information verification, easy document upload and video KYC.
PNB Housing has a presence in all major cities across India. If the customer relocates during the loan term, post-disbursement services will not be impacted
Your home loan from PNB Housing is also subject to enhancement in the event of rising costs or the need for a second loan on the same property for any reason.
Enhanced Customer Experience
Our customer service portal is a self service portal to request for and receive subsequent disbursements in a paperless and completely electronic mode. The customer can reach out to us on the phone , through email or through the service portal available on web and mobile apps. Our contact center would be able to provide standardised and timely service to customers.
An optional insurance facility protects the customer’s family and property. In a mishap, the loan is covered by insurance, ensuring that the burden of responsibility does not fall on the grieving family members.
Type of Home Loans We offer
We offer customized Home Loan solutions with best-in-class services, full-fledged domain knowledge and simplified loan procedures. Choose from the many housing loans available for salaried and self-employed applicants, and enjoy PNB Housing home loan at an easy EMIs every month for a tenure of your liking up to 30 years!
1. Home Purchase Loan
To help our customers, PNB Housing offers loans for the acquisition, development, and expansion of residential properties. As a leading home loan provider, we offer a wide range of customized solutions tailored to each client’s specific needs. PNB Housing succeeds at meeting customers’ home loan demands with a full range of services. Customers can create a long-term relationship of commitment and trust because of the ease of applying for a loan, the solid service delivery model, and the mark to market credit and financial regulations.
2. Home Construction Loan
Home Construction Loans are available from PNB Housing for those who want to build a house on their land. Offerings like this are only available to customers who already own land and require money to build a house on it.
3. Home Extension Loan
Additional room can be added to your current house with a Home Extension Loan from PNB Housing. If your family expands, you may require a guest room, a reading room, or an extra bedroom for your children. We make it simple to expand your current home to meet your specific needs.
4. Home Improvement Loan
To keep your home looking and functioning at its best, PNB Housing offers Home Improvement Loan for you to spend as you see fit.
Coverage for Home Improvement Loan
Renovation of an existing residential home to its full potential
Repairs to your home/apartment/etc.
In-and outside-of-the-home touch-ups
Floor and wall tiling
Plumbing and electrical work
Woodwork and a false ceiling
Residential Plot Loan
PNB Housing provides a loan to purchase a residential plot of land in an urban area to construct a residential premise.
Home Loan Eligibility Criteria
PNB Housing is the answer to your search for a rapid, customized, hassle-free, and easy-to-get home loan. It offers a range of incentives for all those wishing to fulfill their goals of owning or building a dream house, with the attractive interest rates on the market.
Whether you are a salaried individual, a government employee, or self-employed, PNB Housing has very clear home loan eligibility criteria and requirements for all types of applicants.