What is Home Loan?
Any financial institution or bank lends lump sum amount of money to buy a house with interest rates set by RBI and over long tenure as per bank’s rules is known as Home Loan. Banks generally consider two types of interest rates viz. fixed interest rates and floating interest rates. Everyone dream of their own home but buying a home needs huge capital and utilizing your full hard earned money is not practical solution. Avail benefit of our special home loan solutions with lowest interest rates, minimum documents and fast loan processing and enter your step in your new home.
Eligibility Criteria for Home Loan
Loan applicant must fulfill the criteria to get eligible for home loan. Everyone’s home loan requirement are different so as their eligibility. Thus common criteria used by most of the banks and NBFC’s is as follows:
Age
More you are younger; chances are more to get eligible. Home loan is usually disbursed to individual between ages of 21 to 60 years.
Occupation
Anyone of Indian Nationality and of any occupation like salaried, self-employed, professional or business can apply for home loan.
Employment History
Salaried person must have min. 2 years of experience whereas in case of self-employed or businessman, they establishments should be operating for more than 5 years.
Credit History
Centralized banking and software made it simpler for all to maintain credit record history. Thus your credit score should be 750 or above for good loan amount sanction.Special Features of Home Loan
Interest is the most important component of any home loan procedure as it can affect your pockets over the long term if interest rates are not lower. Due to increasing demand by home buyers in India, home loans are offered at lowest interest rates by many Banks and NBFC’s as lending home loan on long term tenure is still profitable to them.
Under section 24 of the Income Tax Act 1961, interest upto maximum Rs. 2 Lakh paid by EMI in a year is considered for tax deductions.
Land and home prices in India are on the high rise and we experienced great impact of this on our standard of living. After the completion of loan tenure, you will be proud owner of your own home and this long term investment will seem most beneficial.
