With the economic transition in country, people tend to move from villages to cities in search of livelihood. Therefore, need for better housing has increased and it all demands great supply of money and this story continues to be written by financial institutes by providing home loans to assist your funding and to made your home acquisition much easier.

However, the cost of living needs ample amount of money which could make you dip into your savings but you can secure a home loan which is made available easily by the number of lending institution these days. Your dream house could be just a click away at ShubhBank where you can “Apply For Home Loan“ to finance your needs.

Home loans are categorized under secured loans and their interest rate may vary from lender to lender. The repayments are done through equated monthly installment or EMI and depending upon the market value, lender may offer loan amount up to 80% of the total cost. The home loan solutions are planned upon the purpose of purchase or construction of the property, funds can also be secured for home extension or renovation.

Let’s have a closer look at the most popular home loan in India:

Loans for acquisition of land: These loans are available on flexible options to save funds and construct any type of home or just to treat your purchase as an investment. It is only available if you want to purchase a vacant plot to save, invest and earn.

Loan for the purchase of home: This type of loan is available for buying a new home or pre-owned home from the real estate agencies. The lender helps you purchase your own home on varied criteria which determines your interest rate. Typically, you can borrow up to 85% of the total property cost in these types of funding.

Home construction loan: If you are having a vacant plot and planning to construct a house of your own choice, apply for this home loan. These loans are specially designed for people who want to build their own house that suits their lifestyle. The loan quantum is approved on the basis of rough estimation of construction costs and disbursed in installments to your bank account.

Home extension loan: The loan is available for the individuals who want some changes in their existing home. In case, you want to add an extra room or bathroom or you want to alter the structure, you may seek a home extension loan with a rate of interest similar to the other home loans.

Home improvement loans: If you are looking to renovate your existing home or want to construct a water tank or need to carry out an electrical renovation, many lenders in the market offer loan for such home improvement plans.

Hence, you are now aware of popular kinds of home loans available in the lending market, so identify your requirement and select the right type of funding that suit your purpose and “Apply For Home Loan Online“ or offline and enjoy the warmth of your personal space.

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.

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.

Nowadays, there has been a massive inclination in the number of home loans secured by people. This elevation has resulted of several factors among which the benefits of applying a home loan are on top of the list. Some of the different borrower-friendly schemes offered by lending institutions are also among the reasons which have accelerated the rate of home loan borrowers.

Some of the borrower-friendly home loan deals come with basic eligibility criteria, the lower rate of interest for female borrowers, and no monthly installments till possession, several discount schemes in the offer period. However, in this article, we have discussed the benefits you can enjoy when you “Apply For Home Loan“ which has made it a popular choice among borrowers.

Benefits of applying a Home Loan:
√ Own an Asset: Purchasing your own home is not an easy job as it one of the biggest investments of one’s life. One has to pay heavy monthly installments which may not be easy on your pockets after taking a home loan. However, instead of all this, you must be happier that now you have your own house, an asset which can give you the sense of confinement and accomplishment. Having your own home is also counted as an investment as it can secure your future as in financial security.

√ Low rate of interest: Home loans are categorized under secured type of loans with a lower payable rate of interest as compared to other unsecured type of loans. The tenure on home loan goes long which can be maximum of 15-20 years and a minimum of 10 years. The rate of interest may vary from lender to lender but never goes high as other unsecured loans. Usually, the interest rates on home loan ranges from 6.70-6.95%. Hence, make yourself sure that you will be grabbing a good deal if you are planning to “Apply For Home Loan Online“.

√ Tax benefits: A great benefit one can enjoy by taking a home loan is the tax benefits associated with loan. According to Section 24(b) of the income tax act, a tax deduction of one lakh can be availed towards the total payable interest on the housing loan in one year after the purchase or construction of property. The rate of interest paid on home loan would be deductable in equal installments starting from the year of purchasing or construction.

√ Zero prepayment penalties: Most of the lenders charge prepayment penalties when a borrower prepays the loan but in case of loan against home, it has a lock in period which varies from lender to lender, in which payment made towards home loan after this period is never chargeable. Therefore, with this surplus money, one can pay more principal towards their home loan and lower their financial stress.

At the end, availing a home loan offers you many benefits but it is a big financial decision so, one should research well before taking a loan. Hence, borrow as per your repayment capacity and try not to default on single EMI making your loan journey hassle free.

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.

A stress-free life is a dream of many individuals, where everyone wants their own home outright and pockets full of cash. Well, it is not easily possible but you can achieve this dream just by following good financial habits. One of the easiest ways to achieve your goal is by paying the mortgage and loans with high interest rates faster. Paying off your loan faster will help you reduce your financial burden. Moreover, it will help you to get safe from default so that you do not have to spend on late payment charges.

Home loans are the big liabilities which always stretch from 20 to 30 years for most of the borrowers. During the loan tenure, the borrowed principal amount becomes much more as the huge amount of interest rate is added to it. The home loans have lower interest rate so people often go with a long tenure but rate of interest keeps on adding for a long time which becomes double or even more than the borrowed amount. Therefore, the best way to get rid of this burden is to pay your “Home Loan“ as soon as possible. Here are the possible ways by which you can pay off your home loan faster.

→ Look beyond big banks: Do not choose the renowned financial institutions as small lenders can do the wonder for you. The small lenders may provide you more personalized service and some festive offers as well which may include longer loan tenure, lower interest rates and ongoing fees. Some of the other advantages which one can get with NBFCs and small lenders can be higher lending ratio, minimal documentation and low processing fees.

→ Make frequent payments: Most of the lenders allow frequent payments to the borrower. You just need to check for this while selecting a lender. You can ask for such facility and can make payments after paying the EMI. The interest rate on home loans is calculated on daily basis and making the frequent payments can help you to reduce the burden of interest which you will be paying over the tenure of your loan.

→ Make a big down payment: Making a huge down payment on your home loan reduces the principal amount which leaves you with fewer burdens. It results in paying less interest rate, therefore overall repayment. A big ticket down payment reduces your debt obligation in comparison to other home loans. The repayments become much easier when you have a low principal amount.

→ Home loan refinancing: If you found something more convenient and affordable after reviewing your home loan, the home loan refinancing can help you to grab what suit you the best. Try to negotiate the interest rate with the existing lender or go with a new lender who offers you a low interest rate as it can save you a lot of money. Use a home loan EMI calculator for detailed calculation and to know the total borrowing cost which suits your requirements.

Some quick tips to save money:
• Save sufficient amount of funds to make down payment before you “Apply For Home Loan“.
• Opt for a loan quantum which could be easy for you to repay.
• Pay your monthly installments and credit card bills on time.
• Utilize your bonus or other profits from your investments to make partial prepayments.