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What is home loan?

A home loan is a financing solution that you can avail of to buy your desired property. You can apply online for a home loan for the constructing a house. Navi offers home loans with a lengthy repayment tenor & quick disbursal.<br>

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What is home loan?

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  1. What is Home Loan? Things to Consider Before Applying for a Home Loan

  2. OverviewHome is not just a bundle of emotions. It involves a massive financial commitment. And you do not want any compromises when buying that dream home.A home loan is the bridge between your desires & reality. A home is not out of reach just because you can't afford it right now. Banks & housing finance companies provide the best home loan offers with attractive interest rates & flexible repayment options.But you need to know a few fundamental things before you sign up and grab that offer!

  3. Essentials Factors to Examine Before You apply for a Home Loan 1. Eligibility Criteria2. Legal Verification3. Interest Rate & Loan Tenure4. Quantum of Loan & Down payment5. Documents

  4. Eligibility CriteriaKnow whether you are eligible for a loan before you apply for it. Factors like income, employment type, credit rating and age play a decisive role in the home loan approval process.You can use the eligibility calculator on the lender’s website or personally meet the company officials to get complete details.Legal Verification of PropertyThe property must have 100% clear titles to pass legal scrutiny. Construction should not be in violation of local municipal laws. Best home loan lenders approve the home loan only after ensuring that it is safe & sound to deal with that property.It is absolutely critical to get the property documents examined by a qualified legal professional.

  5. Interest Rate & Term of Home LoanThe interest rate charged on home loans is based on the benchmark rate set by the RBI. Your EMI remains fixed throughout the loan tenure in a fixed-rate loan. A floating rate home loan is beneficial in a falling interest rate regime.When interest rates are low, you can easily avail low interest home loans.Loan tenure can be as long as 30 years. Although, it reduces the EMI amount, a longer-duration loan will result in a higher total interest expense.You will pay higher EMIs for loans of shorter duration, but your overall interest payments will be significantly lower

  6. Quantum of Loan & DownpaymentMost banks & home financing companies lend up to 85% of the property’s value. The balance of 15% should be arranged by the home buyer. The total amount you can borrow depends on your monthly income & repayment capacity. You can enhance the loan amount by including your spouse as a co-applicant or by increasing the loan tenure.Many lenders offer instant home loans to borrowers with a regular income stream and high credit rating.Proper DocumentationBank statements & Income Tax Returns for the past 3 years are required for individuals in employment. Professionals & businessmen need to provide additional details such as P&L Accounts, Balance Sheets and GST Returns for the past 3 years.

  7. ConclusionYou are now fully equipped with the basic information required to get the best home loan. The right decision made at the right time can save you a few lakhs of your hard-earned money!

  8. THANK YOU

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