How To Apply For The Best Home Loan In India?
Housing loans are one of the most commonly acquired credit instruments in India, given the way it allows individuals to fulfil their dream of owning a house. Though it is easy for any individual to apply for a home loan in India, potential borrowers must keep in mind various steps involved in the process.
Steps to applying for a home loan in India
To apply for a housing loan in India, individuals must follow the below-mentioned steps after visiting the concerned lender’s official website:
Step 1: Select ‘Apply Online’ to open the online home loan application form
Step 2: Input basic personal details
Step 3: Complete verification process with the OTP received on the mobile number
Step 4: Choose home loan tenor and amount and fill up employment, financial, property and personal details
After submitting this online application form, representatives from the financial institution will get in touch to process the loan further.
How to choose the best housing loan in India?
Besides the above step-by-step procedure, individuals must keep in mind some vital aspects to choose the best home loan in India. These are:
- Know eligibility criteria for a home loan
Applicants must check eligibility parameters laid down by a financial institution before applying. For this, they can use a home loan eligibility calculator that will let them know the loan amount they are eligible for depending on their credit score, income, and other factors.
2. Conduct thorough research across multiple financial institutions
To choose the best home loan, applicants must conduct thorough research across multiple lenders before finalising. The interest rate on a home loan varies across lenders, and individuals must choose a most suitable one as payable EMIs are directly proportional to this rate.
3. Consider processing charges while calculating total loan cost
Several financial institutions charge around 0.5% to 1% of the loan amount as a processing fee. Some lenders also involve third party firms to scrutinise an applicant’s documents. This expense usually gets included as a processing fee. Prospective home loan borrowers must consider this fee while calculating the total loan cost.
Before applying, potential applicants must use a housing loan calculator to calculate home loan EMI. Knowing the EMIs beforehand will help them manage the repayments efficiently.
Thus individuals must keep in mind the above-mentioned aspects regarding applying and choosing the best home loan in India.
