Ways to Avail Housing Loans

Posted by Sanjaykale on August 23rd, 2016

Everyone has a dream of owning a house, but not all are fortunate to have sufficient amount of funds to fulfill their dream. Also, the property prices in India are rising sky-high; hence, buying a house in a single payment isn’t really possible. If you are keen about buying a house, you can certainly go ahead and apply online for housing loans. Many government as well as non-government firms offer home loans at affordable rates and easy monthly payments. A number of (NBFCs) Non-Banking Financial Companies have entered into the Indian housing finance market, thereby adding to the possibilities for potential borrowers who wish to purchase a house. If you have all the required documents, then availing a housing loan should not be a trouble for you at all.

Before applying for housing loans you will have to understand the housing finance market by conducting a certain amount of research on the same. This way you can evaluate all the available housing schemes and choose an alternative that best suits your requirements. Once, you have found a loan as per your needs, the next step is to fill up the loan application form. You will be asked to submit a few relevant documents along with your application. You can find out about these documents from any banking website that offers housing loans. The documents required are more or less the same with each company. Few of them include, your salary slips as a proof of income, KYC-PAN, address & ID proof, bank statement along with one passport size photograph. The applicant must have a steady source of income and should be between 22-70 years of age.

India’s leading banks and finance companies offer housing loans at an interest rate as low as 9.60%. Banks and companies may ask for a guarantor at the time of loan approvals. Generally, the repayment tenure offered for housing loans is the maximum than any other type of loans. It takes years to repay a housing loan and thus, the usual repayment tenure offered by most of the finance companies is 20 to 30 years. After you have successfully submitted your loan application, the bank will begin validating the information and documents provided by you. The bank performs a number of checks to figure out whether the applicant will be able to repay the loan. The lender may also send its employees to your place of residence and your place of employment to ensure credibility. If the bank is satisfied with everything, it will issue a sanction letter.

The letter consists of housing loansdetails such as the loan amount, rate of interest, amount of monthly EMIs, repayment tenure, mode of repayment and the general terms and conditions of the loan. The capital is disbursed in the borrower’s account, after verification of the property for which the loan is being granted.After receiving the sanction letter, the applicant is expected to give all the agreements of the property being purchased, to the bank. The documents may remain with the bank till you repay the entire loan amount.