Varanasi has observed a remarkable rise in home loan affordability owing to steady prices of property, stagnant inflation and lower effective rates of interest. Therefore, in the backdrop of rising urbanization, more individuals are opting for a home loan in Varanasi.
The previous fiscal witnessed a 16% growth in home loans while the next fiscal that has just started from April 2019 is likely to observe an even higher rate of 17%-19%.
What is a home loan?
A loan availed from a lender with the help of which a borrower to finance a residential property purchase. However, the property remains mortgaged in the form of security with the lender until the repayment is completed. Note that home loans come with end-use restrictions, you cannot utilize the funds for any other purpose except.
The interest rates are affordable and can either be floating or fixed. Moreover, the lender benefits from the interest charged on the borrower.
Steps to avail a home loan
Home loan interest rates are one of the lowest interest rates in comparison to other secured or unsecured loans. The procedure to apply for a home loan is also no more complicated as it was before. However, it is desirable that you know the prerequisites so that you can derive the maximum benefits out of it.
The following points are a stepwise guide to easily get a home loan in India.
- Fill the application
This is the first step towards availing a home loan. You need to fill in the basic details of your name and residential address while you opt for a home loan online application or offline. Additionally, you need to mention your employment details along with income details to be eligible for the loan amount.
Simultaneously, you need to provide the details and current market price of the property for which you are seeking the loan. Note that the lender will also review the market price of the property from its end.
- Additional documents
Once you have filled the application, you need to provide relevant documents of your identity, income, age, address, employment, and property. The lender will then assess all these proofs to grant you a home loan in Varanasi.
Therefore, make sure all the documents relating to a contact number, address and employer details you provide are valid and genuine. This will make the overall process easier.
- Background verification
This step involves your background verification where your lender is likely to analyze the details and decide whether to sanction your loan or not. Details of the employer and credibility along with contact numbers of both work and residence are checked.
You can use an EMI calculator for an estimate of the repayment amount that you will need to pay each month. However, only if you qualify across these steps will the lender finally approve the loan demanded.
- Further verification
This is the final step of verification. Usually, the eligibility of the applicant and his/her financial condition is considered. It is desirable to avoid these factors affecting your home loan eligibility.
Your ability to repay the loan is the significant determiner of whether you are eligible for home loan offers or not. Hence, you should provide valid income details to prevent future mishaps.
Post-approval, you will find a letter containing multiple details of the loan that you have availed, viz. –
- Loan amount.
- Applied interest rate.
- Type of interest- fixed or variable.
- The tenor of the loan.
- Associated terms.
- Repayment mode.
This is primarily an offer letter sent to the borrower as you apply for a home loan in Varanasi or anywhere else in India. If you agree to the terms and relevant details in it, then you will have to sign it and send it to the lender in duplicate thereafter.
Therefore, if you are looking for a suitable home loan to suit your demands, then you can get it easily with minimum documentation and proper background verification after you apply for it.