If you are in quest of unlocking the best home loans, you have landed at the right platform. Many financial institutes in the market offer their clients home loans against unbelievable offers. These long-term borrowings let the users easily repay the debt within the due period. It also helps the dreams of home buying come true. If you want to acknowledge important information on housing loans, look at the FAQs below and get served as per your requirements.
What Do You Know About Home Loans?
Home loans are specific loans that usually banks disburse to individuals for purchasing residential properties. Under this agreement, the lender gets the property title once they repay the full credit and interest.
What is the Basic Eligibility Requirement for Availing of a Home Loan?
Whether you are a business professional or a salaried person, anyone with a stable income has the right to apply for a home loan. At the commencement of the loan period, the borrower must be at least 21 years of age, and it should not go beyond 65 years of age at the ending time of the loan. Besides this generic eligibility specification, the loaner considers some special criteria of the applicant, like minimum income, creditworthiness, age limit, locality, etc.
What are the Special Considerations Banks Take Into Account for Granting Home Loans?
Once the banks check your repayment capability, they check other important factors, including
- Applicant’s age
- Income level
- Household income or spouse’s income in case you jointly apply for loans
- Continuity of occupation
- Status of residentship
- Credit score and history
- Standing of existing loans
- No. of reliant
What are the Different Mode of Repaying a Home Loan?
Applicants can opt for one of the multiple ways to pay off the home loan. The payable amount automatically gets deducted from the salary credited or through Electronic Clearing System from your financial institution per month. Besides that, the borrower can issue a post-dated cheque for repaying the home loan for the loan tenure.
Can Banks Allow Prepayments of Home Loans?
Yes, an applicant can decide to repay the loan before the end of the scheduled tenure. Here, the user must pay off the debt in a lump sum. The problem is that many financial institutions levy penalty charges between 2 to 3% for prepaying the outstanding.
However, some Non-banking financial companies, as well as banks, don’t let you give penalties for making a prepayment. Therefore, you need to check with the opted bank about all the clauses before applying for the home loans and avoid disruptions.
When Do You Need a Guarantor to Secure Your Home Loan?
It’s not always required to have a loan guarantor. However, banks will ask for a guarantor if
- The applicant’s financial condition is on the weaker side
- The borrowed amount id exceeding the applicant’s eligibility
- The borrower earns way less than the minimum established income
Borrowers of HDFC home loan get a special advantage on reduced tax paying from the income earned a year. It’s recommended to analyze your situation deeply and decide whether it will be ideal for you to take a home loan or not.
