Best Advice as how to Get Home Loans in India Through Online Mode

Consecutively for the 4th time, the Reserve Bank of India has kept the repo rate unchanged at 4%. The reverse repo rate also stands at 3.35%, as announced during their bi-monthly monetary meet in February 2021. As rates of interest are low, this provides an excellent opportunity for new borrowers to avail a home loan online.

Housing finance companies have eased loan applications, where borrowers need not visit any branch physically. They can complete the entire procedure with a few clicks online. This article elaborates on how you can avail the loan effortlessly. 

The process to avail housing loans online

  • Visit the official website of your lender and find the online application form.
  • Fill up the form accurately with your personal information, financial details, employment details, etc.
  • Provide the property details for which you are taking credit.
  • Once done, recheck for errors and submit.
  • A representative will then get in touch with you for verification and further processing.
  • Make payments like processing fee for home loan online
  • Complete the documentation process by uploading their scanned copies or submitting the original papers, as required.

Post successful home loan, lenders can approve and disburse your requested loan amount in minimum time.  

Leading HFCs also bring pre-approved offers customised for their existing customers. These offers simplify the process of availing loans and save more time. Such schemes are available on home loans, loans against property and a host of other financial products. You can check your pre-approved offer instantly with your name and contact number.

The application process is followed by verification of borrower credentials and documents. Note that you must pay at least 20% of the total property value as a down payment. The higher you pay, the more are your chances of loan approval. If you want to pay less, check out how to buy a home with a low down payment.

Factors to ensure faster approval

While lenders ensure faster approval, the home loan online process may be delayed if your loan application has any issue. Below are a few factors to facilitate smoother home loan online application –

  • Eligibility

It is essential to fulfil all the eligibility parameters to get your home loan sanctioned quickly. Job stability, work experience, age, nationality, minimum net income, etc., are some of the criteria lenders offer. You can check your qualifying loan amount based on your personal and financial details instantly using a home loan eligibility calculator.

  • Documentation

Once you have qualified for credit, check the documents required for a home loan. Reputed lending institutions ask for nominal papers, including:

  • Proof of Identity
  • Proof of Address
  • Income proof – latest salary slips or Form 16
  • Business existence proof (for self-employed)
  • Balance sheet or Profit & Loss account statement (for self-employed)
  • Previous bank account statements
  • Passport-sized photograph

Make sure you know the complete list of documents, including property papers required, before applying.   

  • Credit score & profile

A loan applicant’s creditworthiness is evaluated based on credit score and profile. Issued by credit bureaus in India, a good credit score signifies you are a less risky borrower and capable of timely repayment of a housing loan.

  • Make sure to maintain a credit score over 750; the closer to 900, the better.
  • At times, unintentional errors, unauthorised transactions, etc., in the report puts a negative mark, impacting the score. To avoid such inaccuracy, you should check your credit profile periodically and rectify mistakes on time.
  • Credit reports also enable you to know your transaction habits and restrict expenditure wherever possible. This also aids in maintaining financial discipline.
  • Choice of repayment tenor

HFCs offer tenors up to 360 months for easy repayment of a housing loan. A higher tenor gives you more time to repay and lowers your default possibility, thus, convincing lenders for approval.

If you select a longer tenor, EMIs will be smaller, but the total interest outgo will be higher. Contrarily, when a tenor is shorter, the loan EMIs increase, but the total interest payable will reduce. Plan a schedule that’s feasible for you. 

For instance, consider a loan amount of Rs.10 lakh at 9% rate of interest.

  • If tenor is 15 years, equated monthly instalments (EMIs) will be Rs.10,143. The total payable interest on maturity will be Rs.8,25,617.
  • If tenor is reduced to 10 years, EMIs will be Rs.12,668. The total payable interest will be Rs.5,20,082
  • If tenor is increased to 20 years, EMIs will be Rs.8,997. The total payable interest will be Rs.11,59,458.  

Using an EMI calculator for home loan is the easiest way to check EMIs and a suitable tenor.  

Potential buyers constantly show an inclination towards mid- and high-range properties owing to lucrative realty deals. Nearly 46% of customers today prefer apartments within the price bracket of Rs.30 lakh to Rs.1 crore and above. With HFCs offering high value loans, prospective buyers can apply for a home loan online and finance their purchase effortlessly.