Regardless of their economic category, every individual desires a sweet abode they can call home. Some people get the privilege to own one, and some just keep it on their bucket list for years and years. But gone are the days when people had to wait for decades to invest in their house; now, with the help of convenient home loans, it is a matter of days. A home loan helps those who want to invest in a house but don’t have the right financial position to do so.

With the help of a home loan, an individual can easily purchase or build a home of their own and repay the amount in easy EMIs. A Home is more than just a property for people, it’s a space for them to create memories with their loved ones. Therefore, the urge to own a house is more than just a status symbol in India. The concept of Home Loans has helped crores of people buy a space they can call their own.

What is a Home Loan?

A Home Loan or mortgage loan is provided by any lender to any borrower for the purpose of purchasing any residential property. This Loan is majorly taken by those who want to buy a house but don’t have the full purchase price available upfront. This is a secured loan where the house itself works as collateral.

How Does a Home Loan Work?

A Home loan works by providing individuals with a lump sum of money that they can use for their House Purchase and repay within the given repayment tenure, keeping the interest rates in mind. Let’s break down the steps for you:

• • Home Loan Application Submission
  • Eligibility and Credit Check of the Borrower
  • Loan Approvals
  • Disbursements
  • Repayment terms
  • Monthly Payments
  • Prepayment and Penalties
  • Use of the Loan for Property Purchase
  • Completion of the Loan

Benefits of a Home Loan

• • Own a property and build equity over time
  • Manageable Monthly Payments
  • Tax Benefits
  • Various Loan Options
  • Long-term Investment
  • Credit Building
  • Balance Transfer Facility

Required Documents to Apply for a Home Loan 

• • PAN card
  • Aadhaar Card
  • Driving License
  • Home Utility Bill
  • Income-related documents such as Bank account statements
  • Employment/ business-related documents, such as salary slips or profit and loss statements, and property-related documents

Required Eligibility to Apply for a Home Loan 

• • The age limit of the applicant must be 23 to 65
  • The CIBIL Score of the applicants must be 700-750
  • The applicant must have a stable source of income
  • The applicant must be an Indian Resident