If you want to apply for a housing loan, the process just got simpler and savvier! With the advent of technology, it has become extremely convenient to e-apply for a home loan. Even as we delve deep into the process of availing of a home loan online, let us try to understand the salient features of housing loans in general. Therefore, to get a clear picture, we will also discuss the loan eligibility calculator, EMI calculator, loan amount, margin or down payment, types of interest, the relevance of rates of interest, documents required, and tax benefits, among other important factors in this article.
Table of Contents
Prompt and Speedy Process:
Who does not dream of owning their dream home? With home loans online apply, it becomes extremely hassle-free to apply for a home loan. Most leading banks have websites that have information pertaining to housing loans presented in an in-depth manner. From these resources themselves, it is easy to understand the requirements that a bank seeks from the borrower. Once you are ready with the documents required, start filling in the details in the online application form. Hard copies of the documents are usually collected by the bank officials from your doorstep! Within a matter of days, the bank conveys its decision and issues the loan amount.
Reaping the wonders of technology:
The prompt and speedy nature of the best housing loan available in a jiffy only is possible only because of the wonders of the latest technology and how financial institutions have seamlessly embraced the innovations wrought on by society. Till only a few years ago, the procedure required lengthy paperwork. The cumbersome process and the requirement of a large number of documents often meant multiple visits to the bank. Credibility checks would take a very long time as compared to now. With the help of instant photos through phone cameras, scans, emails, online verification, and other means, bank officials have now hastened the processes.
Loan Eligibility Calculator and EMI Calculator:
Even as you aspire for your dream home, you must gather the required information to understand how good your chances are of getting an instant home loan approved. There are numerous online tools offered by most banks to help you ascertain your eligibility for a home loan. Therefore, fill in the necessary details in the Loan Eligibility Calculator and find out about your chances. Similarly, the EMI calculator can help you gauge your monthly EMI and become a very significant tool in helping you plan your finances. We highly recommend you use these online tools to your benefit.
Loan Amount and Margin:
You have spotted a marvelous property, and your eyes are set on it. However, before you jump the gun, understand how much down payment (or margin) you will have to pay for the property out of your own pocket, even if you are considering the cheapest housing loan! The loan amount, which the bank sanctions on you for the property purchase, is usually between 75% to 90% of the total property cost. The rest of the amount, which is called the margin, must be borne by you. Therefore, while looking at new properties to buy, do consider the margin costs involved.
Types of Interest: Fixed and Floating:
This is one of the most significant factors when it comes to selecting a good housing loan. Even as one looks for loans with low interest, one first needs to start comparing the rates of interest of various banks to make the most astute decision. Also, acquaint yourself with the type of interest that you are going to pay. A Fixed Rate of Interest will remain constant throughout the tenure of your low-interest home loan repayment, while the floating rate of interest may change or start with a fixed stipulation for a particular period and then fluctuate.
Documentation Required for Home Loans:
To ensure your credibility, the bank has to fulfill a number of checks. They also require certain documentation to ascertain your identity and credentials. The requirements for documents differ from bank to bank. It is good to be prepared with these basic documents beforehand to fill in the essential details in the online forms.
In most cases, the following documentation is required:
- Income proof via ITR or Form 16
- Passport
- Driving License
- Aadhar Card
- Documents pertaining to collateral, if any
- PAN Card
- Voter ID
Tax Benefits:
One of the highlights of approaching the best home loan lenders is that not only are the rates of interest low, but also you can reap tax benefits under Section 80C of the Income-Tax Act. The benefit earned is for both interest and principal portions. For the interest component, there is a facility of deduction of up to Rs.2 lakh on the interest amount repayments, while for the principal component, you can avail of a deduction of up to Rs.1.5 lakh on the principal amount repayments. Deductions apply even if you have kept your home on rent.
Swift and Reliant:
Gone are the days of cumbersome paperwork. Technology has enabled us to fulfill our dreams with one click. However, many individuals are apprehensive about performing these crucial banking tasks online. These fears are uncalled for because getting the best home loan is both easy and safe. The technology ensures that there are no loopholes during the entire process. There is always prompt Customer Service Support available, and one has to follow the instructions carefully to successfully complete an online application. Technology has indeed changed the world for the better, and this is just a small instance of how far it has changed our lives.
Wrapping Up:
In conclusion, it is indeed very convenient to process your housing loan online. It is a matter of a short period to fill in the requisite details. When you apply for a housing loan, you have to keep a few things in mind. Certain documents, such as passport, aadhar card, driving license, and income proof, among others, are required. Moreover, you must check your CIBIL score. When you apply, keeping in mind these technicalities, then the process becomes much simpler and smoother. Start your home loan journey now. Come select the best loan vendor and see your dream come true today!