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.

One will be surprised to know that he/she can get a financial security along with “Home Loan“ because there are so many ways to save funds on it. The great thing about a home loan is that it can help you save on your monthly repayments. Therefore, one can save a lot on their home reading all the terms and conditions.

A great way to save money on home loan is to avail the most economical loan possible and then repay it off as earlier as possible. In this way, you can save money on interest rate while you are paying monthly installments on the principal amount that are smaller than charged for other mortgages.

A borrower should check and compare all the loan features with different lenders before you “Apply For Home Loan“ to get a best deal out of all. In this blog post, we have listed some of the easiest ways to save funds on your home loan:

Negotiate with lender: When you request a lower rate of interest on your home loan with a specific lender is known as negotiating and its rate depend upon your relationship with the lender. It is important to maintain a good financial relation with lender because if you are a good customer then it would be costly for a lender to lose you.

So, always request a negotiation if you are getting a better deal with other lender. Negotiation helps you to get lower interest rate and better terms if done properly. It would make you able to save more by using your skills efficiently.

Make a large down payment: The clever way to save funds on home loan is to pay large down payment so that you avail only necessary amount which will reduce your interest outgo on principal amount. It is always convenient to make large size down payment instead of taking an additional amount.

It is advisable to keep some part of funds as an emergency fund in case of exigencies. Hence, keep check on both these points and evaluate how much money you can spare for down payment.

Do thorough research: It may be an under-rated step that can help you save a lot of bucks on your home loan. One should do a thorough research on all the available deals and also compare the various rates that are being levied by different lenders. You can check on various lenders at different lending platforms, what they are offering and what you are getting into.

One can also research at regular intervals to know what kind of interest rate changes are happening in lending market and what you are giving in comparison of that.

Increase your EMI: Home loans always have longer tenure so you can increase your monthly installments with increase in your earnings. It will reduce the tenure on your loan as well as interest outgo on home loan. Always keep in mind that increased income would lead to increased expenses therefore, you would be required to account for increased living costs too.

Hence, these are some of the methods which you can follow to save funds on your home loan. One can “Apply For Home Loan Online“ with ShubhBank offering competitive interest rates with no hidden charges and experience best-in-class services.

A home loan helps you to turn the dream of owning a home into reality. There are number of financial and lending institutions who offer home loans at lowest possible interest rates giving you best deals to fulfill your dream. Purchasing a house is always a biggest investment, so it would be your top priority to manage it well.

However, repaying a home loan is a biggest responsibility of an individual and you have to pay back in a disciplined method after you “Apply For Home Loan“ to manage it properly but if you have some other loans over head then try to clear those loans first and keep your housing loan at last. This would not only help you to manage your loans better but this move would also bring you other benefits. Let’s take a look:

Low rate of interest: Housing loans come with the lowest interest rate so it’s always a better idea to clear the loan with high rates first. Credit card and unsecured loans fall into this category whose interest rates can go as high as 20%. As compared to this, home loans can be availed at as low as 8% from some financial institution.

Therefore, it is a good idea to settle the personal or credit card loans first then settle the auto loans that come with higher rates than the home loan, if you want to manage your loans in stress-free manner.

Tax benefits: The home loan is totally different from credit card or vehicle loan or personal loan because it offers tax benefits both on principal amount as well as interest rate which can prove to be beneficial in long run since home appreciates in value over time. If you consider tax benefits that it brings, it would be a great decision to serve the home loans after paying back all the loans.

Rising expenses: Nowadays, living expenditure is sky-rocketing and things will definitely work in your favor if you repay your home loan in last after servicing other existing loans. However, paying back the housing loan earlier would eat up a large portion of your earnings leaving a little amount for other expenses. Hence, it would be a wise decision to keep your home loan repayments last to the list.

Sudden urgencies: Future is unpredictable so beware that emergencies might hit you anytime and might throw your life out of gear. It would be really helpful if you have some funds in your hands to deal with such urgencies and if you have spent all of them on repaying EMIs at the earliest then you might have to strive when you need it most.

Therefore, now you know all the benefits you can avail with home loan and have dream to own your house and lack of funds then there is no need to worry at all about finances. All you need to do is to “Apply For Home Loan Online“ at ShubhBank.com to avail loan at competitive interest rates with minimal paperwork.

Getting your dream home can put you in years of search, visiting different properties and short listing the sites you like the most to finalize a perfect house. After deciding a perfect house for you, next step is to arrange the funds to purchase a property. To do so, one needs to “Apply For Home Loan“ as buying a home is the biggest investment of their life.

Nowadays, real estate prices are soaring high; therefore home loans are the best option for majority of individuals to own their dream house. One can easily secure a home loan as they are secured loans and convenient to repay. In this blog post, we have mentioned some useful tips that can get you into your house quickly:

Achieve a good credit score: CIBIL is the most important criteria that lenders ask for. Most of the lending institutions do not accept the loan application with low credit score. To ensure a loan approval, one must work towards achieving a credit score above 700 before applying for home loan. Moreover, a good credit score makes you an attractive borrower to lender and helps you to grab lower interest rates.

Check errors in credit report: While approving your loan, lender always go through your entire credit history which is generated by credit bureau. Therefore, prior to placing a home loan application, you should check the accuracy of the information contained in credit report. If you spot any mistake, try to correct those errors as it helps you get easy home loan.

Choose maximum repayment tenure: Every borrower prefers the small EMIs coupled with long repayment tenure as it makes you able to maintain your financial health in long run. Also, it decreases the risk of loan default in most of the cases. One must also check with lender if there is an option of part-payment whenever they have surplus cash flow.

Keep your documents in handy: The lack of paperwork for housing loan could be a common reason for the rejection or delayed home loan process. Thus, it is necessary to check the list of documents before you “Apply For Home Loan Online“ or offline to avoid any delay. There is a list of standard document required to get quick home loan that involves identity proof, address proof, income proof and all applicable property documents.

Try to pay high down payment: As we all know, a home loan does not cover the entire payment of purchase. A lender provides 75-80% of loan value and rest of the amount has to be paid by the borrower as down payment. More you will pay the money as down payment; less will be the debt burden on you as higher down payment results in less borrowed amount which reduces the payable interest on it.

Hence, purchasing your own home is a biggest financial transaction ever in your life, so search and compare a range of easy and convenient home loan offered at an attractive rate of interest. Visit ShubhBank to get more information about home loan process.