According to a report, the home loan portfolio in India has seen a 26% growth in the first half of 2021. This growth is expected to increase during the festive season.
This factor can be attributed to the need for private residence among millennials and the unchanged repo rate at 4%. The demand is visible in metro cities like Bangalore, Hyderabad, etc.
Since borrowing bounds an individual to long term repayment obligations, understanding its variables become essential. The process starts with checking the steps to apply for home loan in Bangalore or any other city.
How to apply for a home loan in Bangalore?
Potential borrowers should know that the loan application process varies from lender to lender. Moreover, individuals can apply both online or offline as per convenience.
The common steps for making a home loan in Bangalore online are-
Step 1: Visit a preferred lending institution’s website and select home loan from the product tab
Step 2: On the redirected page, fill in the application form with necessary information like the property details, loan amount, etc.
Step 3: Make an application and wait for a representative to contact
Step 4: Individuals may need to submit scanned copies of the documents.
Potential borrowers can also make a loan application offline. They have to send an SMS to the lending institution and wait for the representative to revert.
Apart from learning the steps to make a home loan in Bangalore application, individuals should consider few factors for an informed decision.
What are the factors to check before availing a home loan in Bangalore?
It is essential to check the mentioned factors to make the right borrowing choice:
1. Eligibility criteria
Every lending institution set certain parameters to scrutinize an applicant’s reliability. Failing these basic criteria can lead to loan application cancellation.
The basic requirement for salaried and self-employed individuals include-
For salaried
- Applicants must be an Indian resident
- An individual’s age range should fall between 23 to 62 years
- Must have work experience of at least 3 years
- Should have a steady income flow.
For self-employed
- Individuals must be aged between 25 to 70 years
- An applicant should be an Indian resident
- Must have a business vintage of 5 years with a stable income.
Lenders may ask for additional requirements depending on their policy. It is recommended to maintain a 750+ CIBIL score for an improved chance of home loan in Bangalore approval. This will also aid in gaining better service and customized offers from a lender’s end.
2. Tenor
A potential borrower must also check the tenor as it impacts the repayment structure significantly. Ideally, opting for a long tenor will reduce the EMIs but increase the interest outgo. Comparatively, a short tenor will aid in making healthy savings by reducing the total borrowing cost.
Hence, individuals should choose a tenor that suits their repayment capacity. They can also use a home loan EMI calculator for the said purpose.
3. Interest rate
Ideally, potential borrowers can find low interest rate home loan. However, it is imperative to know that factors such as type of interest rate, loan amount, credibility, etc., are also considered by a lender when levying the interest rate.
Hence, it is essential to compare different lenders to find the one levying suitable terms and affordable repayment structure on a home loan in Bangalore.
This will also help them gain quality service and customized offers.
For instance, many HFCs extend pre-approved offers that simplify loan applications. Besides home loans, these offers are available on financial products such as a loan against property, etc. One can check his/her pre-approved offer by entering the name and contact number.
One can also save efficiently on borrowing via the home loan tax benefit. Ideally, Section 24 of the Income Tax Act allows deduction on the interest portion of the EMIs paid on a housing loan.
It is recommended to keep a tab on the updates made on the government website for the said purpose.
4. Added charges
Apart from inquiring about the repayment structure, potential borrowers must check the additional charges levied by a lender. This will help them in determining their financial capability to repay the said amount. Ideally, lenders levy charges such as foreclosure charges, part-prepayment, processing fees, etc.
An individual applying should assess the mentioned factors for a home loan in Bangalore. This will ensure a hassle-free borrowing experience.
