Potential home buyers can now opt for convenient financing solutions in the form of a home loan from reputed lending institutions. A home loan or housing loan is a secured financing option that provides surplus funds for home financing. Borrowers must repay the loan to the lending house in monthly installments throughout a specific tenor.
However, one can apply for a home loan only after meeting certain eligibility criteria put forth by a lender. So, applicants must know everything about the housing loan application process before obtaining one.
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How to apply for a home loan?
Before knowing how to obtain a housing loan, a potential applicant must decide on a preferred mode of application. Similar to some other financial products, housing loans are available online and offline.
Here is an explanation of both the processes in detail.
Online home loan process
Individuals must follow the below-mentioned steps if they wish to secure a housing loan online:
- They need to navigate their searches to their lender’s website and click on “apply online.”
- Then, applicants must enter personal details like name, mobile number etc.
- After entering those details, they will receive a one-time Password on their registered mobile number. They need to enter this OTP to proceed.
- Once the verification process is complete, one must enter a home loan amount and tenor.
- Finally, they must feed in information regarding their employment, financial and property details.
Alternatively, potential borrowers can also apply for a home loan offline. Here are the steps to follow:
- Applicants need to visit the loan provider’s office in person.
- They must fill up a physical copy of the application form and submit it along with physical copies of documents.
- Now, they need to pay the application payment via cheque.
It is evident that the offline process takes more time to complete compared to the online process. So, individuals preferring an application mode that takes less time must consider an online mode.
In this regard, one can consider reputed lending institutions that offer high-quantum housing loans online at attractive interest rates. Such loan providers also give the option of pre-approved offers for a hassle-free application process. These offers are available on products including home loans and loan against properties. Borrowers can check their pre-approved offers by entering basic details like name and number.
Housing loan eligibility
Before potential borrowers apply for a home loan, they should be aware of its eligibility requirements. Some of those requirements include:
- Candidates should be Indian citizens.
- They should be salaried or self-employed with a work experience of 3 years and 5 years respectively.
- Individuals should have a minimum income based on their property’s location.
- Salaried applicants should be between 23 to 62 years of age, and self-employed ones should be between 25 to 70 years of age.
Besides, borrowers can follow a few tips to avoid defaulting payments. One such tip would be calculating the housing loan EMIs beforehand to settle for an affordable value. Individuals can easily perform such calculations using a home loan EMI calculator available online.
After meeting these requirements, one can apply for home loans online or offline.
Documents necessary during a housing loan application
Besides knowing about a housing loan application process and its eligibility parameter, borrowers must also consider the list of documents necessary for a successful application.
They need to present:
- KYC documents like Aadhaar card, Voter ID, Passport etc.
- Last 3 months’ salary slips
- Bank account statements for the last 6 months
- Property documents
- Income proof documents
One should note that the list of documents required may vary based on the lender.
Furthermore, one should consider comparing home loan interest rates online and choosing a lender offering the lowest rates. This substantially decreases the debt burden.
Nevertheless, borrowers should know how to pay their home loans faster in order to reduce liability in the long run.
Now that individuals know the details mentioned above, they can easily apply for a home loan.