How to Apply for Home Loan in India

Evaluate the Cost of Project

Nowadays, all home construction projects needs to be financed. Person can get a home loan for any purpose such as buy a property, renovation of home; build a house, home improvement and many more.  Several banks and lending institutions provide loans at the best rates. There are some tips which help the person to get the home loan. Firstly person has to evaluate the cost of the home he or she wants to buy or renovate.  Person can get the loan amount according to the property and repaying capacity.

Procedure of Home Loans

Lenders provide home loans at fixed rates and floating rates. Person must be an approach to that bank that provide loan at the lesser rates. One has to submit their all documents such as Employment proof, Age proof, Income proof, Salary slips and Bank statement to the bank. All documents should be relevant and has no mistake in it. Person must check the credit score, before applying for a home loan. If a person has a decent credit score then, person can take a loan at the lowest rates. If a person has a poor credit score then, person can get a loan at the higher rates. Person can also apply online for a home loan. Person needs to fill the form and submit the form. Banks approve your loan after completing the verification. Once verification completed cash gets disbursed into the clients account.

Home Loan Interest Rate

Nowadays, home loan interest rates are around 8% per annum. In case of private banks, it may be a little bit more. Interest rates are of two types: Fixed rates and Floating rates. Fixed rates mean a person has to give same interest rates for the entire tenure period. Floating rates mean interest rates vary according to the market fluctuation. Person has to give rates according to the market. Sometime it goes up and sometimes it goes down. Fixed rates are best as compare to the floating rates. The EMI is based upon the interest, principal amount and tenure period for which loan is taken.

Sanction of Home Loan

Home loan sanctioned by the bank in three or four stages. Loan only sanctioned after the deep verification of your documents and credit history. Once the lenders are satisfied with your documents and check the credit record is clear, the amount of the loan will be disbursed into the borrowers account.