29-Jun-2021 | Affordable Housing
With the advancement in digital technology, applying for a home loan now days is much easier. The online method has really simplified the loan application process.
Still, there are two haunted financial terms that scare every home loan borrower.
The rate of interest and repayment of the loan amount are the two financial burdens on every loan borrower while opting for a housing loan. But no need to worry, you can minimize the burden to a greater extent with the following ways.
Please go through the ways to reduce your home loan burden by availing Affordable Home Loan.
1. Do Through Market Research
Market research is important for availing affordable home loans. It is the fundamental way by which you can avail a home loan. You need to have a fair knowledge about housing loans and the procedures. Compare housing loan schemes and offers from different financial institutions. Stay updated with current interest rates in the market. Take advice from your friends and network who has already availed affordable home loan.
Get to know your home loan eligibility as it depends on your loan repaying capacity. You can check your eligibility amount by taking help of a home loan eligibility calculator.
PMAY scheme is an initiative of Government of India launched by our Honorable Prime Minister Shri Narendra Modi, recently shared his vision of housing for all by the year 2022, through the "Credit Linked Subsidy Scheme” (CLSS) under Pradhan Mantri Awas Yojana (PMAY).
Now, Economical weaker section / Middle Income group can avail interest subsidy on purchase, construction, extension and improvement of home.
The PMAY scheme is further divided into two parts based on category.
The income of an applicant’s family should be in range of Rs 3 lakhs and Rs 6 lakhs p.a.
CIBIL report is one of the important key factors for determining the eligibility of affordable home loans. It is a report card of an applicant where complete details of repayment of debts by the applicant are recorded. A Lender monitors the CIBIL report and based on that you can either avail a home loan or face rejection. You need to have a good credit score (at least 750 out of 900) by clearing all your previous debts, paying all your credit card dues and so on.
Part-payment of a home loan refers to a lump sum amount paid by you as a loan borrower along with regular EMIs. This way of repayment brings down the EMI amount which ultimately reduces the home loan tenure. And when loan tenure gets reduced then it also brings down the interest rate. Majority of banks do not impose any penalty on making a partial payment.
Applicant’s employment stability is one of the determining factors to avail of an affordable home loan. You can’t enjoy a good interest rate if you have been sitting idle without any job in hand or switching your job frequently. The falling income graph will cost you with a higher interest rate.
So, you need to be steady with your employer for at least two consecutive years to avail of an affordable home loan.
For most of us buying a home is a huge one-time investment. Prepare well at your end and make sure that you are completely ready to apply and avail an affordable home loan without any hiccups. As mentioned above write up, explore all possible ways and come up with a feasible option to get an affordable home loan.