Clix > Home Loan > Your Guide to Home Loans – Eligibility, How to Apply & More

Your Guide to Home Loans – Eligibility, How to Apply & More

clixcapitalwp October 17, 2020

 

An Essential Home Loan Handbook

To understand the universe of home loans, you first need to understand the basics – how to avail a home loan, home loan eligibility criteria, documents required to apply for a home loan, and how to get the best rate of interest on a home loan.

Home loans are offered while purchasing a new property, constructing a home, or for renovation/expansion of your existing home. Home loans fall under the category of secured loans and anyone with the required documents and meeting the eligibility criteria can apply for a home loan in India.

Must Read:  Why Home Loan is Crucial, How to Improve it & Everything else

Understanding How Home Loan Works in India

Availing a home loan in India is the most feasible way to arrange funds for buying a new home conveniently. Taking a home loan makes sense too as you get ample funds for one-time payment and you pay in EMIs over a long repayment tenor. The best advice is to go for a home loan that offers the best rate of interest, is easy and quick to apply, and offers a smooth and hassle-free borrowing experience

How Can You Utilize the Home Loan Amount?

Home loans are designed to meet plethora of requirements a home owner or someone looking to purchase a new home may have, like buying a new home, home renovation, home loan top-up, and for purchasing plot for self-construction. The loan amount can be allocated to any of the above arenas to meet your requirements perfectly. Here are the uses of home loans offered by us:

  • Home Loan for purchasing a new home
  • Home Loan for renovation/expansion
  • Top-up Home Loan
  • Home Loan for Purchasing Plot/Self-construction

Importance of Choosing the Right Lender

It’s imperative to select the right lender before you submit your home loan application. Research the market thoroughly and learn the different offers extended by lenders, associated terms & conditions on home loans, and the eligibility criteria. Make sure you research well, compare, and then select the lender whose eligibility criteria is the closest match with your profile.

Clix Capital offers easy home loans up to INR 1 crore, long repayment tenor up to 25 years, and an easy application process with simplified documentation.

Housing Loan Eligibility Criteria

Now that you understand the concepts of home loans a bit better, let’s look at the eligibility criteria to apply for a home loan. To be qualified for a home loan in India, you need to meet the below listed requisites:

  • You need to be over 18 years of age when applying for the home loan. Also, you should be under 65 years of age by the end of loan period.
  • You should be either a salaried employee or a self-employed individual
  • Your annual combined household income should be above 3 lakhs.

Role of a Good Credit Score in Home Loan Approval

Meeting the above listed housing loan eligibility criteria is essential but having a good credit score can be the deciding factor for your home loan application. Credit Score – the 3-digit score that defines your credit worthiness is an essential parameter for getting a home loan approval.

If you’ve a high credit score (above 750), it goes on to show that you’re responsible while dealing with borrowed funds and lenders perceive you as a low-risk borrower. A good credit score is also important in availing favorable rate of interest at flexible repayment tenor and other terms. If you’re planning to apply for a home loan anytime soon, make sure you work on improving your credit score and maintain a clean credit history.

Provisioning Margin Money for Down Payment

Margin money or down payment is the differential amount between the home loan amount applied and sanctioned. An important thing to note here is that lenders usually approve up to 90% of the applied home loan amount based on a lot of factors. The difference amount, also called as Margin Money, is borne by borrower.

It is therefore advisable that while applying for a home loan, review your finances carefully and have adequate provision to pay for the down payment.

Be Meticulous with the Required Documents

A majority of the home loan application process is collecting and submitting the right documentation. Gathering the required documents beforehand will save you a lot of time and hassle in the entire loan application and approval process. Let’s look at the documents required to apply for a housing loan:

  • Duly filled Home Loan Application Form
  • Passport-sized photograph
  • ID Proof
  • Address Proof

For salaried individuals

  • Last 3 months’ salary slip
  • Last 6 months’ bank statements showing salary credit
  • Latest copy of Form 16

For self-employed individuals

  • Business profile
  • Last 6 months’ bank statement
  • Last 2 years’ Income Tax returns & financials (Balance sheet, P&L)

How Do I Apply for a Home Loan?

Applying for a home loan with us is super easy. The entire loan application process is digitized and takes only a few minutes. Just follow the simple steps explained below:

  • Fill out the ‘Home Loan Application Form’ here.
  • Share a few details about yourself
  • Our customer support executive will contact you for a quick chat
  • Congratulations! Your home loan application is underway and if everything is in order, you’ll receive a home loan approval communication from us.

Don’t just dream about owning a cozy and plush home but make it a reality by applying for a home loan from us. Just call us on our toll-free number at 1800-200-9898 between 9:30 am – 6:30 pm from Monday to Saturday. Alternatively, you can also write to us at hello@clix.capital to resolve your queries around Home Loans from Clix Housing.

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