We facilitate faster loan approvals, longer repayment terms to help buy your first home or invest in a property.
Property is also an asset that helps you reap numerous financial benefits. Whether you are always looking forward to purchase property for investment purposes or for finding your new home, the banking sector mainly provides many loan opportunities that are lucrative and beneficial. Housing loans are great form of financial assistance if you are short on cash, or are not in favour of liquidating your savings. With easy monthly instalments and the option to choose the repayment tenure as per your convenience, banks also help make your dream of purchasing a home a reality. But, before you always begin applying for a home loan, also go through these important suggestions that could help ease the application process and simplify loan repayment.
Research on Loan Options
Your research should always include these three crucial factors that mainly formulate a loan, namely, down payment, EMIs, and repayment tenure. Researching on these three factors mainly prior to your home loan application also enables you to choose a suitable home loan from a better lender at attractive interest rates.
Aim at Affordability
While there are always plenty of options in home loans for you to choose from, affordability is mainly a large contributing factor that you need to consider before applying. The thing should not only be able to afford the fixed monthly amount of EMIs, but also be able to adjust within your cost of living. It should be consider the expenses which is overheaded and beyond the EMI which you should choose to pay each month and maintain a steady income outflow to meet any unforeseen emergency. While you can always opt for purchasing a house that you like, mainly in a location you prefer, being able to afford the home loan is equally important.
Spend Cautiously
A factor that also immediately follows the affordability clause is that of monthly expenditure. Once you always have a home loan to repay, it is mainly preferable and advisable to follow a strict budget to meet your equated monthly instalments.
Choose Suitable EMIs
The equated monthly instalment amount depends on you. Banks mainly offer varied EMI options to cater to and suit different needs of the borrowers. EMIs always depend heavily on the down payment you submit at the time of making a house purchase. The big sum of down payment, is the lesser the stress for an outstanding amount being converted into EMIs. It is always the best to ensure that your chosen EMI amount does not exceed 45% of your total income.
Repayment Tenure
The time you also take in paying off the sanctioned loan is considered your repayment tenure. The repayment tenure and your EMIs also go hand-in-hand. While opting for a longer tenure might also result in smaller EMI amounts, it basically adversely increases the interest rate to be levied, resulting in you having to pay double or triple amount of the loan due to high interest.
Maintain CIBIL Score
Credit score maintenance is mainly an essential requirement to be applying for any kind of loan within the banking sector. So, be it a cyclical credit card payment or a loan repayment; regularity pays off well. If you have a CIBIL Score of more than 750, you are liable to extract even better interest rates on your HNB Home Loan. This is mainly coupled with a considerably higher chance of a quicker loan processing and disbursal.
With all the aforementioned points in mind, always seeking a home loan becomes much more simplified.
