As the Indian Government is providing incentives to boost the country’s real estate sector, it is likely to push the housing credit growth to 19-21% in the current FY 2019-20. This, coupled with easy EMI options and an extended repayment tenor as per your convenience, has helped enhance the lending scenario in India significantly over the past couple of years.
A home loan app is a smart financial tool to procure a housing loan when you face monetary crunches or reluctant to liquidate your savings. However, before applying for a housing loan, you can follow these tips to ease the loan application and simplify your loan repayment:
- Weigh your loan options
Do extensive research on the loan options available in the market before settling on a home loan. Your research must include the pillars of loan formulation – down payment, EMI, and repayment tenor.
In-depth research prior to your easy loan application enables you to pick a suitable housing loan from a lender offering more borrower-friendly benefits.
- Aim for affordability
Considering an unsecured advance, affordability is a significant aspect that must be looked into. A borrower must not only comfortably pay the monthly out-go, but also adjust it within his/her cost of living.
Before using a loan app to file an application, consider the overhead costs beyond your EMIs and still maintain a steady revenue outflow to meet any sudden emergencies.
- Check your CIBIL score
Maintaining a healthy CIBIL score of 750 or above is crucial when applying for a home loan. If a borrower holds a good credit rating, he/she is liable to avail better rate of interest on a housing loan. This is coupled with a significantly higher chance of quicker loan approval and disbursal.
- Pick suitable EMIs
While you use a home loan app to avail an advance, make sure that the amount of EMIs do not exceed 40-50% of your total monthly income. EMIs also depend on the amount made in down payment during the time of property purchase. The higher the sum of your down payment, the lesser is the strain of outstanding amount getting converted into EMIs.
- Repayment tenor
The repayment tenor and your monthly out-go are inversely proportional to each other. While opting for an extended tenor lowers your EMI amounts, it increases the interest to be levied. This results in paying significantly higher loan amount by the end of the tenor.
It is advisable to go for a shorter repayment tenor with higher EMI amounts if you possess a stable and recurring income and set-forth a strict budget.
- Be aware of the foreclosure norms and additional charges
Foreclosing your housing loan by paying the outstanding amount before the committed time saves you significantly from paying additional expenses. However, keep an eye on your lender’s foreclosure policies. Opt for a lender that offers zero or minimal pre-payment and foreclosure charges.
Also, check the additional charges associated with your home loan like late payment charges, processing fees. This can add up and increase your overall out-go. Hence, go for lenders that offer less stringent policies.
With these tips in mind, seeking a housing loan is more simplified. Use a home loan app of your lender to simplify the loan eligibility check and application easier – a step further.
Among a plethora of apps available in the Play Store, you can consider opting for Bajaj Finserv Experia App that comes with an easy-to-use interface and other industry-first features. Through this app, you can procure a home loan, manage other investments, track your repayments and raise a request among a host of other functionalities.
Further, if you are an existing customer of this lender, you can benefit from pre-approved offers. These pre-approved offers streamline the process of availing finances through minimal documentation and instant approval. The pre-approved offers apply to numerous financial products like personal loans, business loans, and home loans, among others. Using this instant loan app, you can check your pre-approved offer by sharing a few necessary details like name and mobile number.
