What is Housing Loan?
Housing Loan is a financial procedure where one can buy its dream property. One can apply for home loan on the basis of its income and can re-pay easily through installments.
With the soaring real-estate price, it is difficult for the intending borrowers to purchase a house through entire savings. To address this issue, applying for a housing loan is a perfect way to finance your house purchase. Moreover, with the RBI’s decision of keeping the repo rates unchanged, the housing loan rates are significantly lower along with the multiple other benefits.
Features and benefits of housing loan
Reputed financial institutions extend home loans for both government and private employees; the amount extended to them is on the basis of their salary, personal assets etc. However, financial institutions offer credit to private employees but lay certain rules and regulations involving interest rate, loan amount and tenor due to their job security and salary.
Irrespective of your employment status, for example, whether you are a government or private employee, you should always seek an affordable home loan that suits your repayment capacity. Before knowing how to apply for a home loan, one should ensure availing home loan at competitive interest rates.
Read on to know about the home loan advantages for both the category of employees:
Loan sanction amount
Reputable financiers offer a hefty loan amount at competitive interest rates to government and private employees to meet the set eligibility parameters. With the combination of nominal interest rates and flexible tenor, individuals can keep a tab on their costs. Here, borrowers can use the online home loan eligibility calculator to calculate home loan eligibility beforehand. Moreover, with this online eligibility calculator, individuals can determine how much home loan they can get on a 40000 salary or more than that.
Using this home loan eligibility calculator allows applicants to borrow per capabilities and manage finances effectively.
To obtain a substantial home loan amount, consumers are required to meet basic eligibility parameters. According to the basic loan terms, one needs to be an Indian citizen between 23-62 years of age. Besides, one needs to have work experience of at least 3 years to qualify for the credit. Apart from these, borrowers need to submit certain home loan documents, such as KYC, address proof, bank account statement, Form 16, salary slips etc.
Comfortable repayment terms and EMIs
When talking about government employees, leading financiers offer privileges on their pensions. According to the new policy, government employees can repay home loans till the age of 75 years through affordable EMIs fixed at 50% of their overall income. They can get the flexibility of repayment for 30 years with a reasonable interest rate. Here, borrowers can also use an online home loan EMI calculator to check the monthly instalments and plan their loans efficiently.
Apart from these benefits, borrowers can avail tax benefits on the principal and interest amount they pay against their housing loan under different sections of the Income Tax Act. Moreover, borrowers can claim tax deductions while applying for a joint home loan.
On top of that, eligible borrowers can also benefit from pre-approved offers extended by reputed financial institutions on a wide range of financing options, such as loans against property, home loans etc. These exclusive offers significantly expedite the loaning procedure and save time. Therefore, individuals can check their pre-approved offers by mentioning their essential credentials.
Therefore, borrowers must note that the application procedure is similar for both government and private employees and do not have any noticeable difference when applying for a housing loan. However, one must check all the terms and conditions before signing a loan agreement.