The concept of home loans is straightforward to understand. In-home loans, many purposes related to home are fulfilled. Some of the goals for which a home loan is taken are:
Home Purchase Loan.
Home Construction Loan.
Home Improvement Loan.
Home Extension Loan.
Land-Purchase Loans/Plot Loan.
NRI Home Loan.
Home loan are an integral part of the financial market and are offered by almost all banks and financial institutions. There are many features of home loans that make them better than other sorts of loans available in the market.
Easier availability-
Home loans are very readily available and are offered by all the financial institutions in the market. The procedure to apply for a home loan has also been simplified and made accessible to the ordinary person too.
Lower interest rates-
Home loans are available at low-interest rates in the market compared to other forms of loans, such as gold and personal loans. The minimum rate of gold loan touches the 7% mark; home loans are available at an interest rate as low as 6.6%, which makes them affordable. Bank of Baroda home loan is said to provide the home loans at a reasonable interest rate in the market.
The benefit of tenure-
Home loans are generally available for a long tenure and can extend to as long as 30 years. This makes them easy to pay as you have been given more time to repay. More the time, more the instalments and more the instalments lesser the amount which is to be paid as each instalment.
Helps in the improvement of credit score:
With the help of a home loan, credit score can be improved. A home loan timely repayment and good relations with the bank helps the credit score to increase significantly. This makes home loans preferred by almost all the borrowers who want to improve their credit score and avail themselves of better credits at lower rates in the future.
Easier repayments:
A borrower can choose between two payments in a home loan- one of the fixed interest rates and floating interest rates. Fixed interest rates are the rates that remain fixed irrespective of the market conditions, while a floating rate is a rate that changes according to the market conditions. Both are to be paid in EMI, which is also called Equated Monthly Installments. EMI consist of the interest amount which is charged as fees by the banks, and it also includes a part of the principal amount contained therein, which is to be paid every month in small proportion throughout a significant period.
Home loans can be availed through two modes- one is an online mode, and another is offline modes.
Let us understand how to apply for a home loan through both methods:
Applying for a home loan through offline mode:
To apply for a home loan through offline modes, one has to visit the bank branch through which they want to avail of a home loan. The customer has to fill out the form and deposit the documents with the bank.
Applying for a home loan through online modes:
To apply for a home loan through online mode, a customer has to visit the portal or mobile application of the bank, submit the documents online and apply for a home loan at their fingertips.
Following are the eligibility criteria which is required to be filled in both online and offline modes:
Self-Employed Individuals: The age of the applicant has to be between 18 – 65 years, and the applicant must have experience of 5 years of in their profession.
For Salaried Professionals: The applicant's age has to be between 18 – 65 years, and the applicant must have been in employment for a minimum of 2 years.
The credit score required in all the cases is 750 and above.
Conclusion:
Home loans are financial services that are easy to apply and faster to avail. Banks have made the whole process simple and less complex for a seamless experience by the customers.
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