The times are such that medical costs are rising, and inflation is high. To have an ambitious lifestyle — one which sees you in much of your comfort zone, doing things that you always wanted — you need to own a house.
While many people might differ on the opinion of owning a house, having your own home indeed gives you the luxury to do things that a rented space cannot.
While there are several options for a loan on Finserv MARKETS, it is important to understand how these loans work for people who are above 60, i.e. senior citizens.
Can senior citizens get home loan?
The simple answer to this question would be a ‘mostly no’. Senior citizens often retire by the age of 60, and at times, even before. Since they no longer have an active source of income, buying a home can be a cumbersome task, as the banks won’t be ready to give them a loan if there is no collateral.
To get a loan, they have to ensure that they do not pose any risk to the financial balance of the deal — that they can assure the bank of paying the loan back even after they have retired. Even if some senior citizens do get pension, that is not always enough to pay for the home loan, as they only receive around half of their salary as part of the pension scheme.
Adding a co-applicant to the process
One of the ways to make sure that senior citizens can get a home loan is by adding a co-applicant to the loan. Adding a co-applicant who is younger and has some sort of financial stability can increase their chances of getting the loan approved.
For the bank, it reduces the risk rate as they now have someone who can pay back the loan in all capacity. This way, they can approve the loan for older people as well, banking on the faith in the co-applicant.
For the co-applicant, it can help them with claiming tax deductions under Section 80C and Section 24 of the Income Tax Act.
Having a lower LTV ratio
Another way of having a loan approved is by paying more amount as a down payment, and less in the form of monthly instalments. If you have paid a large sum of money upfront, then it becomes easier to pay the rest of the sum in the form of fixed installments as they aren’t usually large amounts.
For banks, this can increase the bond of trust, as they can believe that most of the money has been paid upfront and that the applicant — even though he or she is retired — can pay back the money slowly.
While this process may work, it only works for those who have a large amount of savings at hand. It is always advisable that you add a younger co-applicant who has a fixed source of income.
With the above-mentioned points, it becomes easier for those who are old to apply for a loan for buying a home. If you want to apply for a home loan, then you can do so on Finserv MARKETS. On Finserv MARKETS, the good news is that senior citizens up to the age of 62 can still apply for a home loan! Apply for home loans on Finserv MARKETS is a smooth, simple and speedy process that requires minimal documentation.
The benefits of applying for a loan on Finserv MARKETS is that they come with flexible repayment — a tenure up to 300 months to pay back your loan. You also get the option to have insurance, which makes sure that your loved ones do not have to go through the rigorous process of paying back the loan in case of an unfortunate accident. Also guaranteed is 100 percent transparency — something which makes the entire process easy, efficient, and hassle-free to great extents.
Get to know tips for making down payment on home loan.
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