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.