Sunday, 6 March 2022

Apply Home Loan Online Tips



Fulfil your dream of owning a home with the Axis Bank Home Loan which offers home loans starting at Rs. 3,00,000. The Axis Bank Home Loan comes with a host of benefits such as smaller EMIs where you can space out your payment over a longer tenure, attractive interest rates, an easy application process, doorstep service, etc. Find out more about the Axis Bank Home Loan below.

Home Loan
Home Loan

Tips to keep in mind while applying for a home loan

A home loan offers you the chance of owning a residential property and building an asset while at the same time enjoying tax benefits. You have to pay a certain percentage of the property cost, usually up to 20%, out of your funds. The loan amount can be repaid over a fixed period as per your convenience. Both the principal loan amount and the interest repayment are eligible for tax deduction under Income Tax laws. A home loan application can be done at the bank branch, loan processing centre or online. Let us look at some tips to keep in mind while applying for a home loan

Tip 1

Be sure about how much you can afford through Equated Monthly Instalments (EMIs) because a home loan is a long term commitment. Deduct all your expenses, including other loan and credit card repayments from your take-home pay, to know how much you can afford as home loan EMI. Generally, banks allow EMIs up to 40% of your take-home loan salary.

Tip 2

If you apply for a high amount, the bank may not approve your loan. Also, once you know the loan amount you are eligible for you can plan for the rest of the down payment accordingly.

Tip 3

It is advisable to apply for a home loan at a bank where you already have a banking relationship, such as a savings/salary account, a car loan, a personal loan, etc. If the bank already knows your credit history and personal details such as employer, salary, etc, then the bank has to spend less time for the Know Your Customer (KYC) procedure.

Tip 4

In most cases, the bank will look favourably at a customer with a good repayment record and high credit scores and may offer faster approval and disbursal, or flexible repayment schedules or lower processing charges. In some cases, the bank may offer a lower interest rate on the home loan.

Tip 5

Ensure that the project where you are buying your house has all regulatory and environmental clearances in place. Or check if your bank has listed of approved projects of if your project is approved by your bank. This will also help faster approval of your home loan application.

Tip 6

If you need a higher loan amount but your salary does not permit it, take a joint loan with your spouse/parent/sibling. You could also opt for a longer tenure loan. A longer repayment period means a lower EMI and thereby lesser burden on your monthly finances.

ELIGIBILITY

Who can apply?

Want to apply for home loan online? Check home loan eligibility mentioned below:

For Self-Employed Individuals:
Resident Indians only
Aged between 23-70 years
Minimum 4 years of business continuity
Must earn minimum ₹1.5 lakh per annum
Tenure duration 12 months - 300 months

For Salaried Individuals:
Resident & Non-Resident Indians
Aged between 21-60 years
Minimum 3 years of experience
Must earn minimum ₹1 lakh per annum
Tenure duration 12 months – 360 months