Owing to affordable pricing and attractive offers from home developers, more individuals are opting for a home loan in 2021. Consequently, the housing credit segment is also experiencing a boost as prospective buyers are opting for home loans to finance their purchase.
Due to such high demand, lending institutions are also coming up with competitive interest rates and offering these advances against favourable terms. Prospective applicants should, therefore, opt for a home loan only after extensive research and careful comparison of lending institutions.
They should also look out for the following features while exploring the top and best home loan options for 2021 –
- Affordable interest rates
Home loans come with an extended tenor that spans over 10 to 15 years; the burden of interest repayment can create a financial liability in the long run. Therefore, borrowers should consider lenders that offer home loans at affordable interest rates.
They can also opt for online tools like home loan calculators. It will enable them to compare various lenders and know the EMI amount beforehand. Apart from this, there are also other benefits of calculating EMIs before taking a home loan that borrowers should explore before availing this advance.
- Nominal documentation
To reduce the processing period and enjoy instant approval, individuals should consider lenders that require nominal documentation such as identity and address proof, property documents, income proof, proof of business continuity and passport size photograph.
They should also opt for lending institutions that provide easy to meet eligibility criteria for the home loan process, such as –
- Applicants should be of Indian Nationality.
- They must have a minimum income of Rs.25,000.
- Applicants must be within the age group of 23-62 years.
- Salaried applicants should have work experience of three years or more.
- Self-employed individuals should own a business operating for more than 5 years.
Prospective applicants should also look for financial institutions that extend pre-approved offers on secured products like home loans and loans against property. These offers simplify the loan application procedure to a great extent and speed up the process. One can easily check their pre-approved offer by entering necessary information like name and contact information.
- Flexibility in tenor
While exploring home loan options, one should look for financial institutions that allow applicants to opt for a repayment tenor according to their convenience. It will enable borrowers to pay off their home loan on time without straining their budgets.
- Online loan account
Borrowers should consider financial institutions and HFCs that provide online loan account management facilities. It will enable borrowers to keep track of their loan application status, manage EMI payments, and the like from their home’s convenience.
- PMAY scheme
PMAY or Pradhan Mantri Awas Yojana is a Central Government housing scheme that provides subsidies on home loan interest rate to first-time homeowners. Therefore, prospective applicants should look for financial institutions or HFCs that offer home loans under PMAY and other such schemes to avail more competitive interest rates.
- Top-up facilities
Individuals opting for a home loan balance transfer to avail better interest rates and service terms should consider lending institutions that offer facilities such as top up loans. It is an additional financing facility that can be availed over the existing home loans without meeting any other eligibility parameters or documentation.
Furthermore, one can also fulfil their urgent financial needs with a top-up loan as they have no end-use restriction.
Apart from these features, applicants should also go through the terms and conditions specified by the lending institution before finalising the home loan agreement. It will enable them to ensure that there are no hidden charges and avoid complications in future.