What is a home loan? Eligibility, Features & How to Apply?

Everyone wants to have a house of their own? He stayed in his own house. But it is very difficult for the common man to run the daily expenses in the time of inflation nowadays. In such a situation, it seems very difficult to buy your own house. When there is income limited, how can the dream of your home be fulfilled? Because only a few savings can be done after deducting the expenses of the limited incoming daily. In such a situation, the dream of building a house remains unfulfilled.

But to realize the dream of such limited income families, the Government of India and Indian banks are operating the Home Loan Scheme. By using which every person’s dream can be fulfilled. Almost all in India offer home loans from banks. From where any person can take a loan and build a new house for himself. Or you can repair your old house. Almost all in India offer bank home loans. But every bank has its own rules. According to which loans are provided to people. What is the home loan in this post? How can I get a home loan? They’re going to give full information. So read this post to the end.

It is also very difficult for the common man to get a home loan. Because you have to take a loan from 10 lakh to 50 lakh by the banks for this. In order to give such a large amount of money in loans, banks demand a lot of things as security. Apart from this, in general, common people do not even have enough information about home loans. Due to which they have to make frequent rounds of the banks.

What is a Home Loan?

If you want to build your own house. But you don’t have enough money to build a house. So in such a situation, the money you take as a loan from a bank to build a house. It’s called a home loan. You can apply for a home loan to any bank. After taking a loan from the bank and building your house, you have to return the loan amount given by the banks along with interest within the given time. The biggest feature of home loan is that in neglect of other loans, interest on home loans has to be paid at a lower rate.

Note – The amount of money received for home loan is used only to build a house. You have to deposit the amount received by the bank in the installation (installments).

Who can take a home loan?

Anyone can take a home loan in India. But banks provide loans only to those who meet their conditions. You can take a loan by the Government of India Housing Finance Company in India. The loan terms of each company may be different. Nowadays, most people take a home loan from a bank. Below we are going to tell you about the simple conditions for people.

Eligibility or Conditions for a Home Loan:

Generally, banks provide home loans to people keeping in view the things mentioned below.

  • The bank in which you want to apply for a home loan. He must have your account.
  • Any person can take a home loan up to 80 per cent of his monthly gross income.
  • If you have taken another loan before this. So you have to pay for it first. Only after that a new loan is received.
  • If you don’t pay a loan you’ve already taken. So you are provided loan based on balance saving after deduction.
  • If your credit card score is not good. Or you have delayed in paying a loan taken earlier. So its bank checks while giving a loan.
  • Every bank may have different rules for job profession and people who do their own self-employment.

What to do before applying for a home loan?

Before applying for a home loan in a bank, you need to get some information about the bank. Below we are telling you what information you should collect about a bank before taking a loan.

  • What are the documents required for a home loan?
  • What will be the rate of interest?
  • How much is the loan instalment?
  • How much is the processing fee? Fixed or Floating
  • How much loan can you get?
  • How much penalty will it take if you are late?
  • What is the loan agreement (full terms).
  • How much will the loan process time take?
  • Whether there are hidden conditions or not?
  • Whether you will get tax exemption or not.
  • You can transfer the loan to another bank. or not

You should go to the bank and get all these things in advance. And after taking full information of all the things, you should apply for the loan.

Calculation of Home Loan:

Almost all banks provide loans based on your income. Generally, the bank provides loans on the remaining 60% of your income except for your daily expenses. Apart from this, banks also calculate the loan based on the document of your property.

How to calculate the EMI (installments) of a home loan?

Whenever you go to take a loan from a bank. So the bank itself will tell you about your installments. Loan installments may decrease according to the time of your loan repayment. In addition to this, the bank from which you are going to take a loan. You can calculate the instalments of home loan by visiting its official site.

Documents required for home loan:

Every bank demands different types of documents from their customers. But we are giving below the details of the documents normally required to apply for a loan in any bank.

  • 3 Passport size photographs
  • A certificate of a government identity such as Aadhaar card, voter ID card, passport driving license, PAN card etc.
  • Address proof of the house such as recently issued telephone bill, electricity bill, property tax slip, passport, voter ID card, Aadhaar card etc.
  • Proof of Business
  • Photo copy of passbook of bank account, with last 6 months entry.

How to Apply for a Home Loan?

You can apply for a home loan by the manner described below. You can apply for a home loan online if you want. Or you can apply for a home loan by going directly to the bank.

  • First of all, you should talk to the bank’s loan extractor. And you should get all the information. After that, you should fill the application form and submit your documents.
  • If you want to apply online. So the bank you want to apply to. After visiting his official website and getting all the information for the home loan, the application form should be filled.
  • All the information such as your name , mail ID, mobile number, date of birth, state name, home name address, PIN code, purpose of loan, right time to call, employment status, how much loan you need, and how much is your monthly income, should be carefully filled. After filling in all the details, you have to submit your form to the bank.
  • Some charge any processing fee for a bank loan. You may have to deposit the processing fee while applying.

This way you can apply for a home loan. If you like the information about Home Loan, then share it with your friends. Also, if you have any kind of question, comment in the comment box below. We’ll answer your questions soon. Thank you..

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