Apply for Home Loans at the Affordable Interest Rate - Loan Trivia


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Monday 23 January 2023

Apply for Home Loans at the Affordable Interest Rate

One of the first things that applicants look at before applying for a home loan is the interest rate. This factor impacts the EMI amount, the total interest payable and the overall loan affordability. Lower interest rate signifies more savings for the borrowers.  

Benefits of availing a home loan

Most financial institutions offer competitive housing loan interest rates, as these are secured loans. Some of the advantages of opting for a home loan are:

  • Substantial funding

Home loans are big-ticket loans. Some NBFCs offer home loans as much as Rs.5 crores or higher depending upon their eligibility criteria, credit score, income and other factors. 

  • No prepayment or foreclosure charges

Individuals who take a home loan with a floating rate of interest can choose to make part-prepayments or go for Home Loan foreclosure without any additional fees. 

  • Additional top-up loan

Borrowers opting for a balance transfer can get an additional top-up loan from some financial lenders for taking care of their financial needs. 

Documents required for getting a housing loan

The documents required for availing a home loan are:

  • KYC documents like Passport, Voter ID card, Aadhaar card or Driving license

  • Employee ID card

  • Salary slips of the past 3 months (for salaried applicants) and proof of business (for self-employed applicants)  

  • Financial statements of the past 3 and 6 months for salaried and self-employed individuals, respectively  

Before applying for the loan, one must also determine the housing loan EMI by using EMI calculator. It can help in getting an idea of the monthly EMI amount and the total interest payable.  

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