Finding a house that meets your requirement is a great feeling, isn’t it. However, after you achieve this major feat, you might look for a home loan to purchase it. While the process to avail a home loan is quite easy, convenient and hassle-free, it is necessary that you consider all the important aspects of before availing one. These are some necessary things that you should know about when you opt for a home loan.
1. Features of the loan
Compare all the features of a home loan offered by various lenders before you apply for one. This would include your type of loan (whether at a fixed, floating, or hybrid type of rate of interest), interest rates, tenure, pre-closure / prepayment charges, documents required, easy eligibility criteria, responsiveness to regulatory changes as directed by RBI etc.
2. Read the Fine Print
A lender with a lower rate of interest on a home loan could have additional charges and terms attached to the offer. Hence, it is advisable that you look at the fine print before signing the dotted line. It is also recommended that when comparing all lenders, all criteria should be weighed in equally as opposed to going with a lender only on the basis of criteria such as lowest rate of interest.
3. Your budget
Check your affordability before you apply for a home loan. Compare the EMIs with different lenders and look for the one which best suits your needs and budget. A choice of tenure can help you in modifying your monthly outflow. If you choose a longer tenure, you can reduce the monthly EMI but it will also have an impact on the amount of loan that you repay. And if you pick a shorter tenure, the EMI would be higher. You can pick a flexible tenure with us at Finserv MARKETS that ranges between 12 to 60 months according to needs and requirements.
4. Eligibility criteria
Before you directly approach the lender with a home loan application, check if you are eligible to avail a home loan. Also check, whether you are eligible for PMAY scheme to avail more benefits. Non Banking Financial Company like Finserv MARKETS have easy eligibility criteria and you can get approval within 3 minutes.
5. Credit score
A credit score is an important factor that a lender will consider when applying for a home loan. A credit score of 750 and above is favorable to avail a loan at the best deals. However, you can still avail a home loan in case your credit score is less but you have good repayment capability.
6. Tax benefits
Under Section 80C of the Income Tax Act 1961, you can claim a tax deduction up to Rs. 1.5 lakh on the principal amount of your loan. Moreover, under Section 24 (b) of the same act, you can also avail deductions on the interest amount up to a limit of Rs. 2 lakh if the property is self-occupied. If you are planning to rent the house for which you are taking the loan, there is no limit to avail this deduction.
Is Home Loan a Good Idea?
Though availing a home loan is easy, the process could be quite tricky! When you are borrowing funds, it is necessary that you keep abreast with all its aspects and information. Being aware of all the things related to a home loan would help you grab the best deals.
With Finserv MARKETS, availing a Bajaj Finserv Home Loan online is easy, convenient and completely hassle-free. So why wait? Get your home loan with us today and realize your dream of owning your dream home!
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”