How To Avail A Home Loan By Private Employees

The home loan sector has shown a significant increase of 25-40% across major cities in 2021. Moreover, financial analysts say this growth will remain throughout the year. So, the individuals working under a private firm can benefit from this sector’s growth by taking a home loan for private employees.

How to apply for a home loan?

Apply for home loan is easy and can be done both offline and online. With the following steps, any individual including, private employees, can apply for a home loan online-

Step 1: Visit the lender’s website and search for a home loan application form.

Step 2: Open the application form.

Step 3: Type the necessary details, such as personal, salary, bank details, income, annual income etc.

Step 4: Fill in the chosen property details in the application form.

Step 5: Click on submit.

Once the application form is submitted, a representative of the chosen lender will get in touch and assist further. Individuals need to provide all the necessary documents during verification to get faster loan disbursal. 

Home loan eligibility criteria for private employees 

An individual has to be eligible to avail the home loan. These criteria are as follows:

• The applicant has to be a resident of India.

• Borrowers’ must be between 23-58 years of age.

• Individuals should have minimum 3 years of working experience.

Besides meeting the eligibility criteria, one needs to provide all the relevant documents. These documents include:

• KYC documents

• Address proof

• Form 16 or latest salary proof

• Bank statement of the last 6 months

How to get an affordable home loan interest rate? 

Individuals aspiring to get a reduced interest rate for the best housing loan can consider the following ways-

• Choosing a shorter tenor

Selecting a shorter tenor will be beneficial for home loan borrowers despite the EMIs being on the higher side. With a longer tenor, the EMI amount is low, but the overall cost of borrowing increases significantly. Therefore, one must consider his/her repayment capacity before applying for an advance. 

• Making a higher down payment

In general, financers provide a maximum of 80-85% of the loan for the proposed property. This LTV may change from lender to lender. But individuals have to pay the rest. Paying down payment more than 20% for home loans can help an individual in many ways.

A reduced interest rate is one of the major benefits. Hence, one can avail a manageable monthly payment option by making a higher down payment.

• Maintain high credit score

Individuals need to maintain a good credit score and clean credit history to prove their creditworthiness. In addition, having a good financial relationship with the lenders can help an individual negotiate for a lower interest rate. 

If the lenders are satisfied with the credit history, they can reduce the interest rate for the potential borrower. With reduced interest rates, one can pay monthly instalments without taking additional financial stress.

• Opting for a home loan balance transfer

Existing borrowers can opt for a home loan balance transfer to a new lender, promising competitive interest rates against easy eligibility parameters. The primary reason behind borrowers opting for this facility is lower interest rates. One gets to choose a lender offering a lower home loan interest rate, which substantially lowers the EMIs, affecting the overall affordability of the loan.

Financial experts say, opting for a balance transfer at the beginning and the end of the tenor may not benefit an individual. So, one should assess carefully before applying for a balance transfer.

Reputed housing finance companies provide pre-approved offers to existing customers. These offers are applicable to multiple financial products, such as home loans, loans against property, etc., making loan applications more straightforward and time-saving. In order to make substantial savings on loans, borrowers should check their pre-approved offers beforehand by entering their names and contact details.

 

Individuals working in private firms can own homes by applying for a home loan for private employees. One can enjoy various benefits under home loans, such as high loan amount, affordable interest rate, wider loan tenor, no part-prepayment or foreclosure charges, and hybrid home loan facility. But before applying for a home loan, one needs to meet the eligibility criteria and keep all relevant documents handy. 

The post How To Avail A Home Loan By Private Employees appeared first on VOICENDO.

Brainwave Canal