In today’s time, when real estate is touching the sky in India, it is almost impossible to attain the key to our own home without the help of a loan. The days when people actually had to make several rounds to the banks/financial institutions are way behind us.
Nowadays, in order to get a home loan or even if someone is thinking about a home loan transfer, it is just about you and your internet-enabled smartphone. Just a few taps, and you are more than good to go.
What is a home loan?
As the name implies, it is simply a loan amount an individual borrows from a bank or financial institution to purchase a home. Also known as a housing loan or mortgage loan, this type of loan is typically secured against the property being purchased by the borrower. The loan tenure in this type usually ranges from 10 to 30 years.
On the other hand, when it comes to the lender, they charge interest on the loan amount. Further, it is the duty of the borrower to make monthly fixed payments to the lender until the loan is fully repaid. However, the amount, rate of interest and repayment terms of a home loan may vary depending on the lender, the financial situation of the borrower, and the value of the property being purchased.
How to maximize your chances of being approved for a housing loan?
● Good Credit Score
Maintaining a good credit score is a key factor in determining housing loan eligibility! This is because if it’s positive, it indicates that you are financially responsible and can repay the loan on time.
(Tip: Ensure you have a score of at least 750 before applying.)
● Reduce existing debt (if any)
Your existing debt, be it a credit card, personal loan or car loan, can impact your home loan eligibility. Therefore, try to clear all your current debts or reduce the outstanding balance to increase your eligibility.
● Longer Repayment Tenure
Always opt for a longer repayment period as it reduces the monthly EMI payment, which can increase your eligibility. However, it is pertinent to mention here that a longer repayment tenure also means paying more interest over the duration of the loan.
● Increase your income
Your monthly income is also an essential factor in determining the loan amount you are eligible for. If you plan to purchase a property by availing such a loan, try to increase your income by investing in income-generating assets, freelancing etc to increase your housing loan eligibility. This is because a higher income improves the chances of getting a larger loan amount approved.
Which housing loan app is the best to use?
Bajaj Finserv. Without any doubt! I’d like to share my personal experience here. When I was looking for a home loan earlier, one of my associates told me about this app.
Moreover, even if you are looking for a home loan transfer, this application is highly recommended. It is super easy to use, and the money is credited instantly into your account.