Wednesday 22 April 2020

Things to Consider Before Availing a Home Loan


With several reforms undertaken in India’s home loan sector in last few years, availing finances to purchase a house has become easier for potential borrowers. The introduction of home loan apps by leading financial institutions in this country has further eased the process of availing these advances.
Nonetheless, there are several aspects of availing a home loan that one must consider before applying. These are as follows –


  • Interest rate

Before applying for a home loan, individuals must compare the interest rate offered by different financial institutions and choose the one best suited to their requirements. In this regard, online loan apps can be extremely handy since they allow users to access vital information about the loan without hassle.


  • Loan tenor

Typically, home loan tenors can range up to 20 years. Tenor is one of the determining factors of the loan’s repayment amount. It is, therefore, crucial to choose the tenor carefully to ensure that the EMI can be paid without difficulty.
It is best to assess the monthly installment before availing a loan by using an EMI calculator available on instant loan apps to ensure that it is affordable.
Nonetheless, even though opting for a longer tenor means making smaller EMI payments, in the long run, the loan can end up becoming more expensive. It is, thus, best to opt for a shorter tenor.


  • Eligibility criteria

Lending institutions put forth certain eligibility criteria which individuals have to satisfy to avail the loan without hassle. For instance, age, income, employment status, etc. are few of the criteria that one has to meet to avail the credits. Individuals can check the eligibility criteria set by financial institutions through their home loan apps. In this regard, the Bajaj Finserv app – Experia can provide you with the requisite information about the criteria set by this NBFC.
Apart from these, before applying for easy loans to finance purchasing a house, one should also be mindful of factors like credit score, documents required, facilities like balance transfer, loan foreclosure, etc.

Must Read: - How using Loan Apps are Beneficial for Applying for a Home Loan?

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