Nowadays, interest rates on Home Loan are at all time low, therefore having a strong credit score as well as repayment capacity, you will be able to get a home loan at lowest possible interest rates. However, there are some other significant factors also to review before you “Apply For Home Loan“ which involves your income, CIBIL score and existing debts. One also needs to look after the price of house you are about to purchase.

Home Loan is a long term commitment for everyone, so it is always good to decide on best home loan deals for you which can be repaid easily and available at competitive rates of interest. One should review all these significant factors to ensure a pleasurable borrowing experience with financially stable life.

Know your budget: It is one of the fundamental things to look upon while planning a budget to purchase a home because it is necessary to assess your financial health before making a down payment. It will help you to prevent from debt burden in the future and keep your loan journey stress-free.

Start saving early for down payment: Buying a home is every individual’s dream, so it is important to plan your finances at an early age to save a specific amount for down payment. Your down payment could range from 20-25% depending upon the loan type and the lender you chose.

Setting a specific amount for your savings every month is a great way to reserve the money for your down payment. The other option to save an ample amount of money is to go for fixed deposits.

Keep an eye on Credit Score: A credit check is really important while applying for a home loan because if you have a good CIBIL then the chances of loan approval will become much higher. Most of the lenders offer you cheaper interest rates if you have a high credit score. Hence, it is advisable to check your credit score whether you “Apply For Home Loan Online“ or offline.

Check your loan eligibility: One can check his/her loan eligibility online through various lending websites free. The eligibility criteria may vary from lender to lender but the basic things you need to check on is your age, income source, credit score and repayment capability etc. if you meet all the requirements, you can easily avail a home loan at smart interest rates.

Documentation: When you apply for a home loan, you have to obtain and submit some required documents which will decide the speed of your loan processing. If all the documents come in hand, you are going to get a fast loan disbursal in your bank account.

Compare best loan offers: Never get tempted for low or similar interest rate loans. There are number of other things that can influence your borrowing cost. To exemplify, there are some elements linked with loan amount such as processing fee, hidden charges and so on. You must consider all the aspects of the loan terms and conditions before finalizing the loan deal.

Buying your own house is one of the biggest financial goals you will ever be a part of because in our country, a loan against home can be offered up to 25-30 years. Therefore, one needs a lot of patience and determination when it comes to “Apply For Home Loan“. One of the main reasons behind the longer tenure of home loan in India is due to sky rocketing prices in real estate business.

Of course, home loan is not a cheap deal as it cost you in lacs or even in crores. This big chunk of money is not an easy task to arrange at such an early age of 25-30. Hence, most of the individuals take the help of home loan in our country to fulfill the wish of owning a home. Since, it is an affair of huge amount and at early age you are not able to accumulate such wealth, so we have listed few things to consider before making a budget for home loan.

Well, following such thing, one must be able to save enough funds for the down-payment. Let’s have a look on those tips:

Plan a Budget: It is the thing that can be easily learnt from your parents. Planning a budget will help you to understand your spending habits in a better way. Start it by writing down your monthly earning following the list of your fixed expenses like electricity bills, water bills, groceries, rent etc. In the end, you can conclude what you are left with and how much you can save from your monthly income.

Start an Investment plan: Sometimes, savings are not the only solution to your long-term financial goals. If you are working hard to earn a smart salary or profits from your business, then let your savings work hard too. Try to invest in mutual funds, equity funds or other government securities to earn a good amount from there too. As long as you give it a time frame, like 3-5 years, you can expect great returns and profits from your investment plans.

Improve your Credit Score: Always be aware of your Credit Score as it is very important to secure any loan in your future. It is necessary to pay your credit card bills and existing loan EMIs on time. When your credit score is above 750+, the lending institutions term you as a trustworthy borrower and hence will allow you to secure the home loan at lowest interest rates. Therefore, keep an eye on your credit score as any sort of discount matters, as it saves you a lot of money on interest.

At the end, we can say that purchasing a home is a big decision and needs a lot of money. Therefore, if you don’t have enough funds for the down-payment of home loan, then it’s a right time to start planning a budget, investment plan or savings. When you feel ready, just “Apply For Home Loan Online“ or offline at ShubhBank to borrow a right deal to buy your own dream house.

Owning your dream house is a big deal for any individual for which he/she has to work hard and has to seek the financial assistance from any financial assistance to make their dream come true. Most of the population in our country starts earning at their early age and their dream of having their own home starts building up soon.

As all knows buying a home surely is a biggest investment as it has many charges included in it such as down payment, property taxes, registration charges, stamp duty etc. However, in your 20’s it is not an easy job to “Apply For Home Loan“. In this article, we have mentioned some of the hurdles and ways to tackle them to get your home before you turn 30.

Age: It is the basic criteria for any loan to be of age 25 years and if you are in early 20’s and want to avail a home loan, lenders may not be interested to process your loan. To your surprise, you can add your parents as co-applicant to assure the lender about repayments or you can produce proof of employment if you are working for more than a year to get a loan.

Steady income: At such early age, some youngsters just have completed their studies and have started their employment. Either they are self-employed or salaried individuals, it becomes difficult to secure a home loan.

If you are salaried, you can provide the lender with Form 16 for 2 years or salary certificate with copy of ITR whereas self-employed can submit the challans proving the paid advance income tax, assessment orders for 3 years, business proof and audited statements from last one year. If lender asks you to wait for said time then you can save funds for the down payment of your house.

Credit score: In your 20’s, it is difficult to have a strong credit score. One needs to have a good credit history, savings, balanced credit card payments, earlier repayment history etc. to build a strong credit history. It’s too much to expect these things from someone as young as in his/her early age. One should have prior knowledge about CIBIL score before they “Apply For Home Loan Online“ or offline and start building the store from the very start of their employment.

Documents: One needs to have very specific documents in hand to avail a home loan. Before applying, you should start planning and get all the documents one by one in hand to avoid any rejection in the processing of a home loan. These documents may include your Aadhar card, PAN card, copy of approved plan for the construction of home, cost estimation from the bank’s panel, NOC of the society, other property papers etc.

Well, the requirement of documents and eligibility criteria for loan differs from lender to lender but the above mentioned list is basic one. Now when you know all about the hurdles and ways to get a home loan in early age, start planning from right now.

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.