Taking a home loan is the best option to fulfill the dream of owning a house for most of the buyers. Nowadays, getting a home loan has become convenient and quite easier but there are certain things that a loan applicant should keep in mind before they “Apply For Home Loan“. These things include complete understanding of loan process, terms and conditions applied by lender, eligibility etc.

Making a checklist for all these factors is significant during a home loan as it is the biggest financial commitment for which you have to pay EMIs for long tenure until or unless you repay the whole amount with interest. In this article, we have listed few points that one should ask themselves before applying for a home loan.

√ Enough funds for down payment: However, you are securing funding from the lender to buy your home but you still need to make a down payment from your pocket. As per banking guidelines, lender can approve maximum of 80% of the total cost needed to purchase your home and rest of the 20%, you have to pay it from your pocket. As all know, price of the property is skyrocketing these days, and even paying a 20% is impossible for many. Therefore, it is important to analyze your affordability to pay down payment for the home loan.

√ Funds for financial emergency: Before applying a home loan application, one should also analyze the other expenses along with the finances needed for the down payment. After paying the down payment, do you acquire enough funds to face any financial emergency in the future? Life is unpredictable and no one knows what it throws at you at a certain point of life, so investing all your money in a home loan is never a great choice.

√ Negotiation with lender: Whosoever you finalize your lender, but always remember you have the right to negotiate about the interest rate charged on home loan and processing fees. If you are having a good credit score and low credit utilization ratio, it will make you eligible to negotiate with lender. It is a wise decision to check your CIBIL before applying any kind of loan as high credit score gives you the power of bargaining.

√ Estimated EMI: EMI meant for the equated monthly installment and one of the most important factors that decide the borrowing cost. This is the monthly installment you will be paying to repay the entire loan amount. There are innumerable online portals providing the home loan EMI calculator free of cost for use, where you can calculate your estimated EMI helping you to analyze your repayment capacity.

Hence, knowing all such factors, make your home loan borrowing quite easier and faster as you can “Apply For Home Loan Online“ or offline at ShubhBank. You just have to fill out the home loan application form and submit the required documents to secure a loan. Try to keep the above mentioned factors in mind before making a final decision about home loan.

Having your own property or home can be a boon in more ways than once. It provides you and your loved ones a roof over their head or you can rent it out for second earning. Your valuable property or house can also help you to obtain huge amount of funds for a particular event. These expenses for personal events include exotic vacation, funding child’s higher education or wedding that occurs suddenly or demand arranging funds in shortest possible time.

One of the convenient and hassle free solutions to arrange these funds is to “Apply For Loan against property“. It is a kind of secured loan that disburses loan money against your property pledged as collateral. The amount of loan approved depends upon various aspects such as current market value of the pledged property, your income source, debt to income ratio, credit score etc. A loan against property can be a best financial solution for funding personal expenses as per following reasons:

Multi-purpose Loan: It is the biggest advantage of a mortgage loan that it has the flexibility to utilize the money for different purposes. Generally, some of the mortgages in financial sector are limited to specific purpose and can’t be utilized for other purposes. The funds on loan against property are granted without any restrictions on their usage. Usually, 60-70% of the market value of the property is granted as loan money.

Flexible interest rates: The interest rate is the key factor that influences the decision of taking this property loan. The loan rates also depend upon number of factors such as CIBIL score, monthly earnings, market value of property, along with type of mortgage you are applying for. With all the documents in place and good credit score, one can enjoy competitive rates on loan against property that are flexible.

Extended tenure: The repayment period for this type of mortgage unlike other mortgages is longer. It could be as long as home loan, 15-20 years. Hence, you have ample amount of time to earn money and repay the borrowed amount. Some of the lenders also offer value additions like balance transfer and additional finance as well.

When you “Apply For loan against property Online“ or offline, you would have to prepare some documents related to your income, property and identity along with your loan application. After verifying your application and documents, the terms and condition of the loan will be finalized. It is advisable to research all about the lender and lending schemes better to fulfill the eligibility criteria of borrowing.

Mortgage gives you the opportunity to realize the financial potential of your residential or commercial property. You can visit the Shubhbank for loan against property having years of experience in lending sector and expertise that will help you obtain a fully customized loan with exclusive features and benefits. One can also choose from wide range of property loans to meet your individual requirements. ShubhBank is the financial institution which is reliable and reputed mortgage provider with significant network across the country.

Getting in debt is never good because it can adversely affect your financial health and credit history as well. The prepayment facilities on a home loan offered by various lending institutions make it convenient to lower down the EMI burden making the loan journey stress free for borrowers. If anyone avails the facility of prepayment after he/she “Apply For Home Loan“ then it will help him/her to reduce the interest burden which in turn helps to reduce the total cost of your borrowing.

A home loan prepayment means for repaying your home loan before the fixed tenure. It can be paid in two ways either completely or partially. Thus you prepay your home loan, it reduces the EMI. You also have an option of reduced tenure instead of reduced EMI while going for a home loan prepayment. It is advisable to go with it when you have surplus amount of cash with you.

Basically, you can prepay a loan when you receive your bonus from your company or any of your investments get matured. Most of the home loans have long tenure and therefore, borrowers need to pay a lot of interest rates adding up more to the overall cost of borrowing. So, by repaying the loan before its tenure can save you a lot of amount that you would have consumed on interest.

Looking at the benefits of prepayment you must be wondering how you can prepay a loan. Well, one can start with a small prepayment amount and keep adding gradually, this will help you observe the benefits and will motivate you for the new loans in future. Take a plunge into some ways which will help you to prepay your home loan.

Savings: Availing a home loan is a largest investment for everyone which lasts for minimum of 10 to 15 years. It is always good to save some amount on normal basis after paying the monthly installments. By saving this small amount for few months, you can use this amount to prepay your home loan reducing the EMI as well as tenure on your home loan.

Reduce tenure by increasing EMI: If you cannot accumulate funds by savings, you are still able to prepay the loan before tenure by increasing your monthly installments. By increasing the EMI, your loan will end soon and on the other hand it will save you a lot of money on interest rate charged by the lender.

Set the goals: As prepayment of loan, either you “Apply For Home Loan Online“ or offline, it will ensure you a peace of mind but you should not ignore other goals as well. Along with prepayment of loan, one needs to set other financial goals to achieve financial success. It will not help you to stay motivated but also helps you to realize your financial mistakes. Moreover, it also helps you to have a clear vision to achieve your financial goals.

A prepayment should not be your single goal, focusing on other goals such as retirement and children’s education is equally important.

The biggest motivation to work hard and to save money in everyone’s life is to buy his/her own home. Buying a home is the biggest invest that comes with a financial commitment where you have to analyze your financial capacity and need to work on it. As per the current inflation in every sector, buying your own home with your saving is also a tough job and for that reason most of the people “Apply For Home Loan“ to fulfill their dream. Applying a loan can be easy process but your loan approval totally depends upon your age, income, job stability as well as loan repayment capability.

To reiterate, eligibility criteria play a crucial role as home loan is a big financial commitment which comes with longest repayment period ranging from 15 to 20 years. Thus, the home loan lenders become much stringent while approving the home loans. If you are planning for a home loan in near future then you are advised to take some preparatory steps. To get a home loan approval in first go, you need to do some home before applying for a loan. Here, we are listing few tips to get your home loan approval in first attempt:

√ Plan a budget for Homeownership: While purchasing a home, you do not have to bear the cost of house only but there are some additional expenses while getting a loan that includes registration fee, stamp duty, GST, and charges payable to municipality. Therefore, you need to consider all these expenses involved in home purchase while planning a budget.

√ Check your credit score: Credit score is that numeric expression provided by credit bureaus based upon their credit history reflecting their financial health. A score above 700 is considered to be good representing a high creditworthiness. In case you find your score low, you should take some considerable steps to improve it before going to lender as it will minimize the risk of loan rejection.

√ Get prepare for the down payment: No home loan covers the entire amount of the property to be purchased. You need to pay a certain part of it from your pocket or savings which is known as down payment. The maximum amount one can secure from a home loan is about 80-85% of the property price. Hence, the remaining percentage of the entire cost is covered under the down payment. Since the property price is a bigger deal so arranging small percentage can also become difficult for many of us. Thus, try to get prepared for it as it makes loan approval easier.

Purchasing your home of dreams not only indicates your financial reputation but also has some of the sentimental values such as sense of pride, stability and security. Therefore, before stepping ahead to “Apply For Home Loan Online“ or offline, you should start preparing to meet the eligibility criteria to own the home of your dreams. Thus, to get prepared and to make sure the smooth home loan approval, one should follow the above mentioned tips.

Generally, most of the potential loan seekers do not have much knowledge about loan against property, that’s why people prefer to secure personal loans when they need some kind of funding but if you have a huge requirement and want to secure desirable funds, it’s always good to “Apply For Loan against property“ which saves your money on the interest rate. The majority of people have lack of knowledge about LAP that how it can be taken, what is the interest rate on it, how they can apply for it and so on. Here, we will provide you a brief idea about some of the factors related to it.

Loan against property is a type of secured loan where borrower can secure a loan y keeping their property either residential or commercial as collateral. However, by doing so, one risks the ownership on property which is given as security but if borrower repays the loan without any default then there is no risk at all. Since, you are keeping one of your prized possessions at risk, it is crucial to check everything about loan process so to create no room for any errors. Here, we are listing some points that you should take into consideration before taking LAP.

♦ Interest rate: Once you make up your mind for LAP, the first thing to look after is interest rate comparison. There are innumerable lenders in the market offering loan against property but it’s important for you to choose the favorable deal offered by particular lender on affordable interest rates. Therefore, compare the interest rates between lenders online and choose one that offers you best deal.

♦ Loan documents and payment terms: It is always advisable to read the documents carefully before signing any loan agreement as doing so without proper knowledge can cost you too much in the long run. So don’t make a hurry to seal the deal without checking every document properly, especially, when you are unable to understand the terms and conditions properly.

You can also seek help from a financial expert who lets you understand the fine line that you should pay attention to in your loan documents which involves terms of prepayment, minimum and maximum prepaying amount, any clause that allows the lender to change the terms of the loan and at the end one of the most important clauses after defaulting on a loan.

♦ EMI calculation: Whenever you “Apply For Loan against property Online“ or offline, it is important to calculate your estimated EMI. It will help you to analyze your affordability as well as helps you to plan your monthly budget accordingly. One should not default on paying the EMIs for the loan that you secured against your property. Hence, do calculate your monthly installment to repay the bank and then decide on the loan quantum that you want to take against the property. There are number of lending platforms available online where you can use the EMI calculator to this accurately.

No matter what, a loan against property can be a great way to fund your bigger cash requirement. It’s upon you to utilize this option wisely while applying for LAP.

Nowadays, home loan market is growing with every passing day and easily available to the common masses. Though it is easily accessible, therefore, one should be aware of the loan quantum that can be approved to him/her. Thus, it is advisable to research properly and understand completely about the home loan eligibility. So, before you “Apply For Home Loan“ it is highly recommended for you to check your eligibility as well as affordability.

Loan eligibility is a term given to specify your affordability. It reflects how much loan money you will get through home loan. The eligibility is determined by various factors which include borrower’s age, income, employment, CIBIL score and many more depending upon the norms of particular lending institution. The factors that help in enhancing the home eligibility involves a good repayment history, regular source of income, co-applicant/co-borrower, low credit utilization ratio etc.

There are some tips and tricks to increase your home loan eligibility and to secure a loan quantum that you desire. In this article, we are discussing some tips to enhance your eligibility which is mentioned below:

→ Adding a co-applicant: Signing a home loan agreement with your spouse or your partner as a co-borrower can increase your eligibility. By doing so, you can also get approved for higher loan quantum from the particular financial institution. As a matter of fact, co-borrower can be your life partner, your sibling or any other family members. Adding co-applicant can increase your EMI affordability and lender find it more secure to lend you the money. Some of the lenders also get ready to lend a loan at comparatively low rate of interest.

→ Adding second source of income: Another source of income can help you to increase your eligibility for home loan. A second source of income can be your rental income, part-time job, rent from farms, share etc. Adding any of these on top of your monthly income reflects your good financial health and hence, lending institution find it secure to approve you a higher loan quantum.

→ Improve your credit score: It is one of the key factors that decide your loan approval or rejection either you “Apply For Home Loan Online“ or offline. It is one of the most important components which decide the loan money which will be approved for you. Lenders find it secure to lend money to the person having good credit score as it indicates good repayment history of yours. Therefore, if you are planning to take a home loan, check your CIBIL score first. If you find it low, then try to improve it.

→ Repay your existing debts: The repayment of existing debts not only help you to build a good CIBIL score but also help you to decrease the credit utilization ratio which further enhances your home loan eligibility. Moreover, having some additional savings and investments can also add up to your eligibility.

Hence, these are some of the tips and tricks that you can follow to increase your “Home Loan Eligibility“ and make the loan journey easy and convenient for you.