Given the impact of this financial decision, home loan aspirants should be careful about the lender they choose to borrow from and the home loan application process itself. Although the application process is not very complex, one must ensure that they follow it through and meet the prescribed eligibility criteria, which are unique to each lending institution.
However, thanks to the digital transformation of the mortgage industry, all the information you need about your home loan is available online, allowing you to research and do your due diligence before applying. And not only that, industry leaders such as Bajaj Housing Finance Limited are even offering online applications – taking the entire home loan borrowing journey online, with very little physical interaction at a time when social distancing social is the need of the hour. People who apply through the lender’s online home loan application form can also get a digital sanction letter. The whole form takes around 10 minutes to complete and only asks for basic details.
In this article, we tell you everything you need to know before applying for a home loan online.
Home Loan Eligibility Criteria
The first thing any home loan applicant should look closely at is their home loan eligibility. Each lender has a list of requests they expect applicants to respond to, after which they can approve their loan application. Parameters include age, credit score, repayment capacity, income, and obligation, among others.
Applicants are advised to check their eligibility beforehand to see how they compare to the lender’s criteria and only then apply. This can help find the best home loan for their repayment capacity and increase their chances of being approved. Applicants should note that their credit rating is also hampered if their home loan application is rejected – so be certain of their chances of being approved before applying.
Mortgage interest rate
Another important point to consider when looking for the right home loan is the applicable interest rate. The interest rate is fundamental in determining the cost of your home loan and how you can plan your finances. Lenders offer two types of interest rates on home loans to eligible applicants, namely fixed and variable.
1. Fixed interest rate: If you opt for a fixed interest rate, you insulate your home loan EMI from market fluctuations. As the name suggests, the interest rate remains the same for the entire term or until a reset date. However, the fixed interest rate is usually a bit higher than the 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, but it also gives the borrower the benefit of favorable market conditions, which results in lower interest rates and smaller EMIs. Reputable lenders such as Bajaj Housing Finance offer salaried and professional applicants variable rate home loans starting at 6.70%* per annum, the eligibility basis.
Calculate the EMI home loan
Every home loan aspirant should take stock of their repayment capacity and calculate their potential 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 because it helps you plan your long-term financial goals and track your EMI exits, which reduces the risk of default.
The first step in planning your repayment is to determine the amount of loan you need from your lender. An applicant can generally achieve significant value if they have a strong financial, income, and credit profile and can meet prescribed eligibility criteria. After you have decided on your loan amount, you will need to set the loan term 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 predict your potential 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 term and interest rate as they see fit, to get a realistic idea of what their NDEs might shape into being – which in turn shows them if they can afford the home loan they desire.
How to apply for a 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 – saving you time and effort while applying for a home loan. Here’s how to apply for your home loan online:
– Visit your loan provider’s website and access their online home loan application
– Select the loan product you are interested in
– Provide the basic details requested on the form – your name, income, proof of identity, proof of address and co-applicant details (if required)
– Adjust the loan amount, term and prime interest rate as needed
– Check pre-approved offers and special perks tailored for you
– Upload other necessary materials and documents before finalizing the application
Many lenders also offer on-call assistance, with a customer service consultant who can help you through the process. Toll-free telephone numbers are also available to facilitate the process for the borrower.
In the post-pandemic world, applying for home loans online has been extremely beneficial for borrowers and lenders. This move towards digitalization also gives the borrower full control over their application and makes their borrowing experience hassle-free.
If you are looking for a home loan, consider opting for Bajaj Housing Finance Limited online home loan – designed for maximum price 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 journalists are involved in the creation of this content.
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