What About A Home Loan In India?

It is a loan to fulfil your housing needs. Starting from buying a flat or plot of land, you can take a home loan. While taking a loan to purchase a property, you need to keep your property as a mortgage to the loan provider. It is a secured form of a loan. It is a specific loan taken only for housing needs, without any flexibility. There are various banks and NBFCs that offer loans for several purposes. It is a long-term loan that can extend for up to 30 years of the loan tenure. If you are planning to purchase a home, here’s everything that you need to know.

Credit in the form of instalments

A home loan is an installment form of credit. The repayment is done in flexible monthly installments. The borrower needs to decide on the loan tenure based on which the monthly instalment will be calculated. It is not a revolving form of a loan.

A home loan is a high-value loan

One of the most expensive investments is real estate. Therefore, the principal loan amount is always high in a home loan. It is an expensive loan. As a result, the eligibility criteria and home loan documents required are lengthy in order to obtain approval. To be eligible for a high-value loan, there are various eligibility parameters.

Home loan eligibility

In order to be eligible, factors like credit score, property, income, debt to income ratio, credit utilisation ratio, business stability, documentation, and credit profile are important. The eligibility factors for salaried and self-employed individuals are different. Therefore, in order to get loan approval, eligibility prerequisites are vital.

Where to get a home loan from?

A home loan is a very popular kind of loan in India. There are banks and non-banking financial institutions offering loans for home buying purposes. Non-bank financial institutions provide fast approval, minimal documentation, competitive rates, and online application. Loan application rates are much higher in non-banking financial institutions in comparison to traditional banks.

Tax advantages in home loans

One of the best advantages of taking a home loan is the tax deduction. If you take a home loan, the amount of interest that you pay in total will be deducted from your annual taxation. Tax benefits are huge on a home loan for salaried. Therefore, it is a recommended financing option to get your dream home as well as make a lot of savings.

Wrapping up

Apply for a home loan with Clix Capital! The home loan interest rate is low and affordable. Meet the eligibility requirements and get instant approval.