In a home loan, a Housing Finance Company (HFC) such as Bank of India Home provides financial assistance in the form of a loan to the borrower who wants to get a house. In India, the sentimental value of the people attached to having their own house is incomparable. This creates a massive market for this financial service. Almost all the banks and financial institutions have included in their portfolio home loan services. Due to this increased competition, customers are made available with many options to get a home loan. A careful analysis has to be done before a decision can be made by the borrower willing to get a home loan.
Various features of home loans which can help us understand it in a better way are many.
There is a need to understand the features in a better way to make a wise decision.
There are huge chances of capital growth once you have entered into any property-related stuff. And when that capital asset is sold in the future, you will attract capital gains, and The borrower can also avail of the deduction of the same under Income tax.
Home loans are more reliable as they are offered by the top banking channels in the country. Some banks assist in providing around 90% of the value of the property.
Home loans are available for many purposes. Some of them are Purchasing a house, Construction of a house, Improvement in place, Extension of a place, Land/ Plot purchase
Due to prompt and timely repayment of EMI, a person can massively improve their credit score. With the help of a Home loan, an individual can improve their credit score too. An improved credit score is a fortune for a person willing to take loans in the future.
Home loans are an essential financial service available in the financial market as it helps a person get the home of their dreams. Home loans are generally available for a maximum term of 30 years. The flexibility in the tenure is a great advantage for the borrowers.
Tax deductions of home loans under Income tax are also available. Section 80 C provides the conclusion of the payment of interest and principal amount. One of the most significant traits of a home loan is the affordability of home loans. Home loans are available at lower interest rates. Even lower than gold loans makes them a perfect option for a borrower as home loan interest rates are minimal.
Following are how the home can be applied are-
The very first step before applying for a home loan is knowing your eligibility. The following points will explain the eligibility criteria for home loans-
For Salaried Professionals-
The age of the applicant has to be between 18 – 65 years
The applicant must have been in employment for a minimum of 2 years
Self-Employed Individuals-
The age of the applicant has to be between 18 – 65 years
The applicant must have experience of 5 years in their profession
The credit score required in all the cases is 750 and above. Banks have been very strict with the credit score thing before approving a loan. This has primarily been because of many scams where people taking the loan amount from the bank never return it to the bank. By a satisfactory credit score of 750 and above, banks can be assured of the individual's creditworthiness applying for such a loan.
If an applicant fulfills the above eligibility criteria, they can go for both online and offline modes to apply for a home loan. Online way is the easiest to visit the website or portal of the lender and choose from many available options best suited for them. Various documents which are required can also be submitted online.
Conclusion-
Home loans are straightforward to apply, and primarily through the online mode, the process has been highly simplified where a person can get a home loan without even stepping out of their chair. The facility has been made available at the fingertips of the customers.
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