Buying your own house will be a one of the most fulfilling experiences in everyone’s life. However, it requires a large investment and to meet the purchase value, one can rely upon home loan. One doesn’t have to wait for years to accumulate wealth to purchase a home, they can “Apply For Home Loan“ to access funds for home and this loan also provides attractive tax benefits.

Now you know the benefits of availing a home loan, you should also be aware of home loan repayment. There are number of ways offered by the lender these days to repay your home loan. Therefore, prior to this discussion that what repayment options you could consider, let’s have a look how these loan are repaid. The loan is repaid through EMIs which is a fixed amount you need to pay back your lender every month on a fixed date throughout the loan tenure.

Here, in this blog post we will discuss some of the options that how can you consider your repayment against home loan. Have a look now:

Timely repayment: The way you schedule your EMI payments plays an important role in the cash flows. If you are salaried individual, your repayment should coincide with your salary date whereas if you are self-employed individual, make sure you have required funds in your bank account to repay your EMI. Make sure the timely repayment of your monthly installment as it helps you to escape any extra charges or penalty and improves your credit score.

The earlier the better: Availing a home loan in the early age as in 20s or 30s ensures that you could have sufficient time to pay back your home loan prior to your retirement age for leading a stress free life. Moreover, you can also pick out the option for longer tenure for home loan in which a lender implies a lower EMI for your loan amount and vice versa.

Prepare an emergency fund: A robust financial planning should surely help you to accumulate an emergency fund which could be really useful in case of job loss or medical urgencies such as hospitalization or any other mishappening. It will ensure that the money you have kept aside to repay your home loan should not be affected in such situations.

Limit your monthly installment: If you have multiple loans to service such as personal loan, car loan, education loan etc. then lender will compute your EMI from calculator which will be added to your other loan EMI payments to assess how much of your total income is earmarked for each loan repayments. Therefore, it is advisable to limit your monthly installments to a maximum of 40% of your monthly earnings.

Hence, you know that how you can consider your home loan repayments to make your loan journey easy, stress-free and joyful. Now “Apply For Home Loan Online“ at ShubhBank as we offer simple as well as convenient repayment options with which you can plan your cash flows smartly and prevents you from hindering your financial goals.

Owning a home is one of the most significant dreams for most of the people and they wish to build a house for their family. For most of the people, having a home is a long term asset which they wish to leave behind for their upcoming generations. Therefore, to make home purchase achievable in the skyrocketing property prices, lenders have proposed the concept of home loans.

One can “Apply For Home Loan“ to get instant access to affordable financing to purchase their dream home. Similar to other loans, home loans also have certain guidelines as the process of home loan is regulated by RBI and National Housing Board. In this article, we have outlined some of the guidelines that are followed by the lending institutions while sanctioning you a home loan:

✓ Valuation of the loan: The loan amount offered by the lending institution depends upon the loan to value ratio which is evaluated on the basis of borrower’s eligibility as well as the market price of the property to be pledged as collateral. A lender will sanction the funds up to certain limit like 80-90% of the total value which excludes stamp duty, registration charges as well as other expenses.

✓ Pre-payment charges: As all know, Home Loans are generally high value loans which borrowers choose to repay in 20-25 years duration. However, if anyone chose to settle or pre-pay the loan amount earlier then a penalty of 2-4% is levied. According to new guidelines, RBI has made the Home Loan terms more flexible and favorable for borrowers by waiving the penalty charges.

It is applicable for the Home loans availed on a floating rate of interest and taken for non-business utilization.

✓ Eligibility and Documentation: Every lender need to ensure while lending money that all the submitted documents by the borrower are in order with the statutory requirements. Moreover, home loan applications shall be accepted of the customers who meet the eligibility criteria which involves a regular income, efficient repayment capability and a god credit score above 750.

This all can be verified with the help of documents. Keep in mind that eligibility criteria and documentation can be different from one lender to other.

✓ Flexibility to switch: In case, you have availed the home loan when the rate of interest was so high and now other lender is offering you to transfer your outstanding loan balance at better rates of interest, you have an option to foreclose the loan with penalty and switch your existing loan with the new lender at low rates of interest. However, this benefit can be enjoyed for the borrowers who have taken up the floating rates of interest.

Well, in the times of inflation, we all would not have sufficient funds to fulfill our needs but the lending sector has made some major dreams possible through their loan solutions these days. Thus don’t feel restricted to buy your dream home now as you can “Apply For Home Loan Online“ or offline to enjoy your comfortable space with your family and beloved ones.

Nowadays, one of the easier methods of financing a home purchase is availing a home loan but sometimes your loan application gets declined. These reasons can be as simple as not meeting the basic eligibility proposed by the lender or some of the documentation errors in your KYC details as well as property title.

In this article, we will discuss some of the significant reasons of the rejection at the time you “Apply For Home Loan“. We will guide you through these points that keeping these factors in your mind while availing a loan can lower or nil the rejection of your application.

● Low credit score: Every lender prefers to sanction the loan to its customers who are having a credit score above than 750 as it reflects your capability of repaying the loan and lowers the risk of default. However, if you credit score is poor then try to improve your credit score before getting a home loan to avoid rejection and to negotiate on better terms of loan.

● Age of borrower: Generally, home loan is a long term with repayment period going up to 25-30 years. In case, if you are applying for home loan near to your retirement age, then the chances of rejection are higher. If anyhow you get approval on your loan application, then you have to pay the higher down payment and you have to provide some additional guarantees such as younger co-applicant.

● Insufficient paperwork: Improper documentation can be one of the main reasons behind the rejection of your home loan. If you fail to provide any single document asked by the lender, it can impact the entire loan approval procedure. Therefore, it is good to checklist all the required documents before getting a loan to avoid any troubles through loan procedure.

● Unstable job: Your job stability is the crucial factor consider by every lender as it indicates the regular cash flow to repay your loan within the stipulated time. However, frequent job hopping can impact your home loan eligibility adversely and reflects the sense of uncertainty about your credit-worthiness in the lender’s mind.

● High debt to income ratio: A high debt to income ratio of borrower indicates that a larger part of your income is utilized in servicing existing loans or other expenses. So, prior to loan application, one must ensure himself/herself as well as lender that they have low debt to income ratio. You must be aware of the thing that your loan EMIs should not cross the 50% of your monthly income.

● Unauthorized property: The loan application doesn’t depend upon only meeting the eligibility criteria but it is also based upon the paperwork regarding property to be purchased. It is advisable to check the every aspect of property to make sure that the property is free from legal issues and should meet all the guidelines of local authority.

Hence, it is good to ensure yourself that you fulfill all the guidelines and eligibility criteria of loan then “Apply For Home Loan Online“ or offline to ensure smooth home buying experience.