When you take a loan from a bank for buying a house or property, it is termed as home loan. You can either apply for home loan online or offline. While applying online you can check the interest rates from various websites and can then apply accordingly. You can also avail the home credit loan apply online option by either downloading their app or visiting their website. Home credit loan apply option allows you to upload all the documents online on their website. If you take a home loan then you need to pay it back every month through EMI.
As a security you need to give papers of the property owned by you to the bank.
If due to any reason you are unable to pay back the loan then the bank will have all the legal rights on the property and can sell it.
Features and benefits of home loan
Deduction for Interest paid on Home Loan
Low Rate of Interest
Deduction on Principle Repayment
The following are the features of the home loan:
Redraw Facility: You can take some amount of money from the extra repayments on the home loan.
Low interest rates: Some banks offer very low interest rates for the home loan taken by you. You should do your research properly before applying for the loan online.
Pay the interest only: You have the option of only paying the amount of interest for a period of seven years.
Home Loan Top up: You can borrow more money from the lender if the mortgage has a home loan top up feature.
Repayment holiday: Repayment holidays may vary from a month to about 6 months during which you do not have to pay. You can avail this feature only if you have made extra repayments on the home loan.
Additional Benefits of Home Loan:
You can avail the home loan insurance
You can increase the time period for claiming the decrease in the interest
You can have an easy transfer of balance
You have affordable ownership with the home loan
It can easily be approved due to collateral
You can get benefit of up to 2 lac on the principal and the interest amount
Apart from this the NRI home loan interest rate may vary from 8.35% to 9 %. Documents Required for Home Loan Different documents are requested according to the eligibility criteria. The following documents are however similar:
Personal Assets and liability statements
Signature identification from the present bankers
Pass book of the last six months
Proof of business for people who do not work as salaried individuals
Application form signed and affixed with specified number and passport sized photographs.
Bill or property tax receipt
Requested documents by the Guarantor:
2 passport sized photographs
Address and identity proof
Personal Assets and Liability statement
Signature identification from present bankers
Additional documents by the Salaried Individuals: The documents required for home loan for salaried person are as follows:
Photocopy of ITR or Form 16 for the previous 2 years.
Salary certificate from the employer
Additional documents by Non-Salaried Individuals:
Challan copies showing the advance income tax paid.
Photocopy of ITR or Assessment Orders of the last three years