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How to apply for your home loan online: The process

How to apply for your home loan online: The process

Homebuying is a serious financial commitment as it is an exciting milestone in one’s life. Most of us require external financing to support our dream to own property, and home loans today make it that much easier. With leading lenders now offering more relaxed and customer-centric borrowing terms and rates, availing of a home loan not only aids your home buying journey but also helps accelerate your tax savings. Given the impact of this financial decision, home loan aspirants must be cautious about which lender they choose to borrow from and the home loan application process itself. While the application process is not very complex, one must ensure they’re following it to the T and meeting the prescribed eligibility criteria, which is unique to each lending institution. However, thanks to the digital transformation of the mortgages industry – any information you need about your home loan is available online, allowing you to research and carry out your due diligence before you apply. And not just that, industry leaders such as Bajaj Housing Finance Limited even offer online applications — taking the entire home loan borrowing journey online, with very little physical interaction at a time where social distancing is the need of the hour. Individuals applying through the lender’s online home loan application form can also get a digital sanction letter. The whole form takes about 10 minutes to complete and requests only basic details. In this article, we tell you everything you need to know before making your home loan application online. Home Loan Eligibility Criteria The first thing any home loan aspirant must look at closely is their home loan eligibility. Every lender has a set list of asks that they expect applicants to meet, following which they can approve of their loan request. The parameters include one’s age, credit score, repayment capacity, income, and obligation, among others. Applicants are advised to check their eligibility beforehand to see how they measure up against the lender’s criteria and only then apply. This can help one find the home loan best suited to their repayment capacity and enhance their chances of getting approved. Applicants must note that their credit rating is also hampered if their home loan application stands rejected — so one must be certain of their chances of being approved before they apply. Home Loan Interest Rate Another important point to factor in while you’re looking for the right home loan is the applicable interest rate. The interest rate is fundamental in determining how expensive your home loan can be and how you can plan your finances. Lenders offer two types of interest rates on home loans to eligible applicants, namely fixed and floating. 1. Fixed interest rate: If one opts for a fixed interest rate, they insulate their home loan EMIs from market fluctuations. As the name suggests, the interest rate remains the same throughout the tenor or till a reset date. However, fixed interest rate is typically a little higher than floating interest rate. 2. Floating interest rate: As the name suggests, this interest rate is linked to an internal/external benchmark and is subject to change depending on the market. This rate is not only lower than the fixed interest rate, it also passes the borrower the benefit of favourable market conditions – translating to lower interest rates and smaller EMIs. Reputed lenders such as Bajaj Housing Finance offer salaried and professional applicants floating interest rate home loans from 6.70%* p.a., basis eligibility. Calculate Home Loan EMI Every home loan aspirant must take stock of their repayment capacity and calculate their possible home loan EMI to see if it is an amount they can comfortably repay over a long period of time. Having a tentative repayment schedule in place is important as it helps you plan your long-term financial goals, as well as track your EMI outflow – reducing any chances of defaulting. The first step of planning your repayment is to determine the loan amount you need from your lender. An applicant can typically get a sizable value if they have a strong financial, income, and credit profile and can meet the eligibility criteria as mandated. After you’ve decided on your loan sum, you will need to fix the loan tenor over which you will repay the loan. There are several considerations to take into account, such as your age at the time of borrowing, your EMI to income ratio, and your financial profile. Using a Home Loan Calculator makes it easier for you to forecast your possible home loan EMIs. The Bajaj Housing Finance Home Loan Calculator is a free and easy-to-use digital tool that allows borrowers to adjust their loan amount, loan tenor, and interest rate as they please, to get a realistic idea of what their EMIs could shape up to be – which in turn shows them if they can afford the home loan they desire. How to Apply for Your Home Loan Online The online home loan application journey hosted by market leaders, such as Bajaj Housing Finance Limited, is easy to follow and efficient – allowing you to save both time and effort while you make your home loan application. Here is how to apply for your home loan online: - Visit the website of your loan provider and go to their online home loan application - Select the loan product that you are interested in - Provide basic details as asked for on the form – your name, income details, ID proof, address proof, and co-applicant details (if needed) - Adjust the loan amount, tenor, and preferred interest rate as per your needs - Check for pre-approved offers and special benefits tailored for you - Upload other necessary paperwork and documents before finally completing the application Many lenders also provide on call assistance, with a customer care consultant who can assist you through the process. Toll-free phone numbers are also available to make the process easier for the borrower. Conclusion In the post-pandemic world, taking the home loan application online has been extremely beneficial for borrowers and lenders alike. This move towards digitalization also gives the borrower full control over their application and makes their borrowing experience hassle-free. If you’re in the market for a home loan, consider opting for the Bajaj Housing Finance Limited Online Home Loan – designed for maximum affordability and convenience. One can complete the form in just 3 steps and get a Digital Sanction Letter in as little as 10 minutes. Disclaimer: This content is distributed by Bajaj Finserv. No HT journalist is involved in creation of this content. Download.

brand-post 2021-12-15 Livemint