In recent years, home loans have proved to be an effective source of financing for home buyers. By availing it, millions of people across the country have realized their dream of purchasing their dream house. Different financial institutions provide home loans with different terms and conditions. It is advisable to compare various loan offers provided by different financial institutions before availing. You must settle for a financial institution that offers the most competitive interest rate. This will help you save a large amount of money in the long run.
Less processing fees, flexible repayment options, quick approval and instant disbursal of the loan amount are some of the added advantages of availing a loan from a reputed lender. It is essential to make a note of the loan tenure. You must evaluate your repayment capacity and creditworthiness carefully and choose a loan tenure that best suits your needs. A longer repayment tenure will give you more time to repay the loan amount and also keep you away from heavy monthly installments. There are various other advantages of a home loan with longer tenure. Let’s have a look at some of them:
Higher Loan Eligibility
If you happen to avail a home loan for a shorter duration, your EMI will be higher. Additionally, in case of shorter tenure, borrowers will be eligible for a small amount as compared to a longer tenure. The loan amount that you are eligible for, would depend on various factors such as your age, credit history, and repayment capacity. It is advisable that you should boost your credit score before applying for a loan. This will help you avail a higher loan amount at a comparatively reduced rate of interest. A higher loan amount with a longer tenure can enable you to choose a bigger home for your near and dear ones. Moreover, a high credit score will help you avail the loan with more favorable terms and conditions.
Income Tax Benefits
Under section 24 of the Income Tax Act, lending institutions provide benefits to the borrowers on the interest rate charged on the home loan. Moreover, Under Section 80C borrowers can also avail tax rebates on the principal. The maximum deduction under this section is Rs 1.5 lakh for the repayment of the principal amount.
Flexible repayment option
Long tenure home loans come with flexible repayment options. Moreover, leading financial institutions do not charge prepayment penalties. Thus, it enables the borrower to prepay the loan without spending extra money. Moreover, if you have availed a fixed rate, you can still prepay the loan amount without paying any additional penalty amount. You can also consider prepaying a certain sum of the outstanding amount each year so that you become debt-free quickly.
Now that you are well aware of various advantages of longer tenure, ensure that you make the right choice while making the final decision. Before applying, you must check your eligibility with the help of an online loan eligibility calculator. This will reduce the rejection chances of your loan application. The basic eligibility criteria for home loans available at Finserv MARKETS are mentioned below:
You must be an Indian citizen
You must be a salaried individual with at least 3 years of work experience
Salaried individuals between the age of 23 to 62
The loan amount you can apply for ranges from 10 lakhs to 3.5 Crore
With prominent platform like Finserv MARKETS, you can check your eligibility with the help of user-friendly online Home Loan Eligibility Calculator. All you have to do is input a few basic details, and obtain your loan eligibility. In addition to that, home loans available at Finserv MARKETS have comparatively lower interest rates. You can also customize your loan depending upon your needs and requirements. Therefore, if you are looking for a loan to purchase your dream house, loans available at Finserv MARKETS can be a good option.
When you avail a home loan, it is essential that you purchase a Home loan insurance policy. An insurance offers safeguards you against the risk of default in repayment in case of the sudden demise of the primary applicant. An insurance policy ensures that your dependents don’t have to bear the obligation of repaying the loan in your absence.
However, since availing a home loan is a huge financial decision, the borrowers must be vigilant throughout the entire process of applying. It is essential that the borrowers fill the online application form carefully. The lenders approve the loan only after scrutinizing all the mandatory documents submitted by the borrower. Post verification of the documents, the borrowers receive the home loan sanction letter from the financial institution. It is to be noted that financial institutions charge a processing fee to get the sanction letter ready. More often than not, the processing fee is not refunded to the applicant even if the loan is not approved in the later stage. Therefore, it is always advisable to settle for a financial institution with minimum processing fee. Also, always settle for a loan with a low-interest rate. In case you have already availed a home loan at a comparatively higher interest rate, you can opt for home loan balance transfer.
Due to a lot of financing options available, a large number of borrowers are opting for a home loan balance transfer. The Home Loan Balance Transfer Process allows the borrowers to transfer the outstanding loan amount from the existing lender to a new one. This enables the borrowers to repay home loan on comparatively lower interest rates. You can avail a home loan balance transfer at Finserv MARKETS at nominal interest rate. This will reduce the overall cost of borrowing and help you save a large amount of money in the long run. Apart from low interest rate, home loan at Finserv MARKETS also come with attractive features such as flexible repayment tenure, less processing fees, no hidden charges, etc.
Lastly, do not forget to read the terms and conditions of the loan agreement before signing it. This will help you avoid any inconvenience in the later stage.
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.