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Home Loan Starting 6.70%*

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Process to Get Home Loan

Buying a house in India today is quite challenging because of the soaring prices of property. However, you can actualize your dream of owning by taking a home loan. A home loan is exactly what you need to complete your homebuying journey, but how well do you know the home loan process?

Like other loan types, a home loan has unique features and benefits. Learning more, especially about how to apply for a home loan, will bring you closer to your goal of owning a home.

In this article, we will show you all you need to know about the home loan procedure— including what a home loan is, its features, benefits, required documents, and the procedure for a home loan application.

What is a Home Loan?

A home loan is an amount you obtain from a financial institution like a bank or a non-banking financial company (NBFC) to build a house or purchase a property of your choice. To get a home loan, you must meet the lender’s requirements be able to repay the loan amount confidently.

Because a home loan is a secured loan, you can use the home you buy as a form of collateral in case you default on repayment—enabling the lender to repossess your home. To avail of a home loan, you need an excellent credit score and must not have defaulted on previous loans, if any.

Two Essential Features of a Home Loan

As you prepare to apply for a home loan, here are two essential features to look out for.

1. Long Repayment Tenor

Lenders offer home loans to you and expect that you repay the loan amount within a specific period. Home loan tenors can extend up to 30 years, depending on your credit score.

2. Swift Loan Disbursal

Bajaj Housing Finance promises to disburse your loan amount into your bank account in a time as little as 48 hours* if you meet all their mandates. This helps you press the accelerator on your property purchase.

Benefits of a Home Loan

Some of the benefits you enjoy when you apply for a home loan are given below.

1. Low-Interest Rates

Lenders offer low interest rates on home loan deals which allow you to repay the loan amount promptly. However, you must have a good credit score to qualify for a low-interest home loan.

2. Reduced EMI

Because a home loan comes with a long tenor, you can spread out your repayment. This allows you to spend less on EMIs till the loan amount has been repaid fully.

Home Loan Procedure: Overview

Having a proper understanding of the home loan procedure will help you greatly during your home loan application process. The process to apply for a home loan can be hassle-free or tedious depending on your readiness. You must recognize that having no history of missed debt payments will favour your home loan application.

Remember that you can only avail of home loans provided that you satisfy the lender’s requirements. You will also need certain documents to support your application. What are the steps to take if you want to avail of a home loan? Find them below.

Steps to Avail of a Home Loan

Below is a step-by-step guide for the home loan procedure.

Step 1: Application

Begin by filling out the application form with the following:

  • Your name and phone number
  • Your residential address
  • Proof of income
  • Your employment details (for salary earners only)
  • The estimated price of the home you want to buy

Step 2: Document Collection

At this point, you will provide necessary documents, such as:

  • Proof of identity documents like a Permanent Account Number (PAN) or driver’s license
  • Property documents
  • Proof of address documents like the latest utility bill
  • Latest salary slips or Form 16
  • Bank account statements dating back to 6 months

Step 3: Document Processing and Verification

During this stage, the lender reviews the submitted documents and checks for authenticity. The lender will also check your credit score and credit report to see that you are a low-risk borrower.

Step 4: Loan Approval and Disbursal

If satisfied with your credit score and the application in general, the lender approves your request and you receive the loan amount within 4 days of approval.

Take a Low-Interest Home Loan Today

At Bajaj Housing Finance, it doesn’t matter what budget you’re looking at, you’re sure to find one that suits your specific needs from our incredible array of home loan deals, provided you meet our easy asks. The perks of applying for any of our home loan offers include low interest rates, minimal documentation, a balance transfer option, and many more.