How Does a Home Loan Work in India?-Banner_WC
How Does a Home Loan Work in India?_WC
Real estate purchases can be a lot to bear without external financial support. If you are considering a property purchase, you can also consider availing of a Home Loan to help you meet the cost of the property.
A housing loan allows you to access sizeable funding to facilitate the purchase of the residential property you want to buy, and repay the sum over a predetermined period, at a predetermined interest rate over an extended period of time.
Eligible salaried and professional borrowers can avail of funds from Bajaj Housing Finance at an interest rate starting as low as 8.50%* p.a., with a tenor ranging up to 40 years.
Here are a few things to bear in mind while you consider borrowing a Home Loan:
- Eligibility Criteria: An applicant’s eligibility is based on the property in question and the applicant’s financial situation, income, employment, and credit profile. You should ensure that your eligibility matches that of the lenders’ to reduce your chances of rejection.
- Project Approval: Another important aspect to consider is the profile of your selected property. It should match the lender’s risk and lending parameters for you to be eligible to seek a loan for the property.
- Applicable Tenor: A loan for a property usually comes with a repayment period of up to 40 years. However, do weigh your options before picking your tenor, as it has a direct impact on your potential interest outflow.
- Prepayment Guidelines: As per RBI guidelines, individual borrowers with a floating interest rate loan do not pay any additional charges on prepayment or foreclosure on Housing Loans. However, do make sure you’ve researched the policies applicable to you, and are prepared to bear additional costs, if any.
**Bajaj Housing Finance does not provide Home Loans for property construction at this point of time
- Keep an eye out for Home Loan offers in the market and conduct a thorough research
- Gather all the necessary property-related documentation, and evaluate your own eligibility
- Understand the difference between a fixed and floating Home Loan interest rate***
- Consider the EMIs and applicable interest rates; a quick way to do this is with the help of our Home Loan EMI calculator.
Note: We do not offer fixed interest rate Home Loans at this point of time
This is a brief overview of how a Home Loan works in India. For many, this is a once-in-a-lifetime investment, and it helps to be prepared for the processes involved.
Now that you have a better understanding of Home Loans, how they work and the steps to keep in mind before you apply, consider opting for a Bajaj Housing Finance Home Loan. The loan comes with several advantages, including a repayment period of 40 years based on your eligibility. For a hassle-free experience and quick loan approval, apply online by sharing your basic details.
*Terms and conditions apply
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