Home loans can be a savior for people who want to have a permanent residence for themselves. It isn’t easy to find the desired apartment or house, especially if you are on a tight budget. Home loans will give you that boost and help you secure the property for yourself.
Banks and other NBFCs have a tedious application, verification, and approval process that can be easily avoided if you choose top banks like SBI, HDFC, or ICICI as your loan provider.
Banks or NBFCs have come up with a special Housing Loan EMI calculator for people who struggle to keep track of their loan payment amounts. This feature of the company has already received positive responses from its users. It will help you know what the exact payment amounts will be to make a conscious decision.
Banks’ easy and fast process, along with its flexible policies, is what makes them so popular among customers who have been disappointed by other loan institutions. They are currently operating in over 5000 cities in India and have an ever-growing customer base of over 1 crore users across the country.
What are Home Loans And How You Can Get Them?
Home Loans are special loans that can be taken for acquiring or making construction on your property. These loans can be used for various home renovations and repairs as well. All banks and NBFCs give this loan for a fixed tenure and with a fixed annual interest rate.
Prominent NBFCs offering home loans in India:
- Reliance Capital
- Indiabulls Housing Finance Limited
- LIC Housing Finance Limited
- Mahindra and Mahindra Financial Services Limited
- Muthoot Homefin
Prominent banks offering home loans in India:
- Bank of Baroda
- ICICI Bank
While most banks provide people with home loans, the borrowers have to go through a very lengthy documentation process, verification, site evaluation, and so on before they can get the amount credited to their account.
This is why understanding the process and choosing a loan provider who has a simpler system of sanctioning home loans is necessary.
They will check these documents and provide you with the loan credit within 24 hours of the approval of the full scheme.
What Are The General Requirements To Get A Home Loan?
A Home Loan can be availed by almost anyone in the country over the age of 21. Eligibility criteria for getting a home loan are:
- Has to be salaried or self-employed
- Need to have a monthly in-hand income of INR 13,500 or more
- Their monthly income should be received in a bank
- A minimum CIBIL score of 600 or Experian score of 650
- Should be aged between 21 years – 57 years
- Should have all the necessary documents
Here’s a list of documents that you will need to apply for a home loan:-
- Identity proof, i.e., PAN or Aadhaar Card
- Residential proof
- Last 3 months’ statement with salary credits
How Can Home Loan Calculator Help To Calculate Home Loan EMIs?
Home loans involve borrowing a considerable amount. You need to constantly calculate the EMI amounts and make sure the repayment is made correctly. However, there is a simpler way to know exactly how much money you need to pay the lending institution yearly.
Banks/Housing Finance Companies have come up with an easy solution that will help get your finances in order. Its EMI calculator will give you a breakup of your installment rates along with interests and closing balance at the end of each year.
The amount breakup will help you understand exactly how much money you will owe to the lending institution, including the yearly interest that needs to be paid along with the original loan amount.
Banks/Housing Finance Companies will also help you calculate the total interest amount you will have to pay during the loan tenure.
It uses the formula P x R x (1+R)N / [(1+R)N-1] to calculate the EMI. Here,
P represents the principal sum,
R is the interest rate, and
N is the number of months within which you need to make the repayment.
Let us illustrate the EMI calculation using a simple example:
INR 50,00,000 is the amount that has been borrowed (P),
10% is the interest rate that has been imposed (R), and
120 months is the designated tenure (N).
From the above formula, the EMI to be paid can be calculated as:
50,00,000 x 0.00833 x (1+0.00833)120 / [(1+0.00833)120-1] = Rs. 66,075.
The rate of interest (R) is calculated monthly. Therefore, it is calculated according to this formula: Annual Rate of interest/12/100 (12 being the number of months in a year).
In this case, the monthly rate of interest becomes 10/12/100 = 0.00833.
All you have to do with this EMI calculator is simply add your loan scheme details like principal sum, rate of interest, and the tenure in months.
The calculator will do its job and provide you with the details. It will give you the details of the opening balance, interest, principal, and closing balance each year.
Benefits of Getting A Home Loan from Banks:
While many lending institutions can provide you with home loans, Banks occupy a special position as a lender.
The most lucrative feature of their home loan policies is that the entire process from application to verification and loan amount credit is straightforward and hassle-free.
Here are some excellent benefits of choosing Top Banks as your home loan provider.
- Fast Eligibility Check
Banks/Housing finance companies have a speedy system of helping you know about your chances of getting a home loan. They are very transparent about their eligibility criteria, and you won’t need more than 2 minutes to find out exactly how much loan amount you will be able to get.
- Affordable Interest Rates
Banks/Housing finance companies are very considerate when it comes to setting interest rates. While other private lending institutions charge high interest rates.
- Digital or Online Documentation
Another great feature of getting a home loan from Banks/Housing finance companies is their complete online documentation process. There is no need to submit your documents in person. You can simply upload them online and wait for the team to verify them.
- Loan Amount Credited Within 24 hours
The need to wait for weeks at a time to get the home loan amount credited to your account is eliminated. Banks/Housing finance companies do it within 7 working days after they have completed their approval process.
- Long Loan Tenure
If you are worried about completing the payments in a short time, Banks/Housing finance companies will ease your mind. They offer a long repayment tenure of up to 30 years.
- Low Credit Scores Don’t Matter
Banks/Housing finance companies have some special schemes for people with low credit scores who may not be able to get a loan at another lending institution. Their eligibility criteria state that they offer loans even to people with a CIBIL score of 650 or an Experian score of 750.
Calculating EMIs will be an easy affair with an Online EMI calculator. There is no need to be anxious over complicated calculations as this will do the job for you.
Banks/Housing finance companies offer some extremely lucrative loan schemes and help people understand the exact financial responsibility they will be taking when they sign up for a home loan.
If you need a loan with a fast documentation process, then Banks/Housing finance companies will be beneficial for you. From providing you quick loans with low interest rates to calculating your EMI breakups, Banks/Housing finance companies will take care of everything.
So if you wish to move to a new home, or you have already started building the house of your dreams, land yourself at the top Banks/Housing finance companies!