Apart from being considered an exorbitant asset these days, housing is also a primal need. Living in a house that has your name to it isn’t a luxury but rather a necessity. Unfortunately, many new home buyers feel overwhelmed by the process of obtaining funds for their dream house. However, acquiring a spacious, well equipped home for you and your loved ones is now easier with PNB Housing.
PNB Housing offers the best home loan in India at affordable interest rates and flexible tenures. Buying a home, constructing a new house, or simply redecorating your existing abode, with PNB Housing’s funding schemes, you can do any of the above with minimum stress and maximum joy of starting a new journey in your life.
One of the essential factors that applicants must consider while seeking a home loan is the interest rate offered by a particular bank or financial institute. Since potential borrowers will be spending a significant portion of their income on monthly installments, it is vital to opt for a loan that reduces their economic burden. PNB Housing Interest Rates are designed to cater to the individual needs of every prospective loanee. Whether it is salaried individuals or self-employed applicants, the competitive interest rates are favorable to all.
Key points to consider while applying for a housing loan in India: –
1) Maintaining a Decent Credit Score
A credit score determines your creditworthiness i.e., your ability to repay a debt based on your previous repayment history. The figure is calculated by considering factors such as adherence to punctuality, credit utilization ratio, debt to income ratio, secured credit, unsecured credit, etc. A credit score above 750 indicates that you are a disciplined and responsible borrower. This further helps to achieve the best home loan at a low interest rate.
2) Arranging the Required Documents
More often than not, the documentation stage is where most applicants experience stress and anxiety. Preparing the necessary documents (ID Proof, Address Proof, and Employment Proof) beforehand can save you a lot of time. It also shows that you are an organized individual, a parameter that lenders might consider while offering lower interest rates. On the other hand, running around at the last minute for incomplete paperwork can be very exhausting and take away from the joyful experience of acquiring a new home.
3) Stable Income
When applying for a home loan, it is absolutely essential to ensure that you have a stable source of income. Your ability to repay the debt will be judged primarily on your employment status. Working for a reputed company can be beneficial in obtaining competitive interest rates. Apart from this, the debt to income ratio is a numerical value that represents the chunk of your income that will be spent on debt reimbursements. PNB Housing Interest Rates start from 6.75% for salaried individuals and 7.10% for self-employed individuals.
4) Co-signing the Loan with Someone
It goes unsaid that applying for a joint loan aids in reducing the financial burden. By sharing the obligation with someone, you can utilize your resources to fulfill other commitments. In India, many banks and NBFCs offer flexibility in interest rates to female applicants.
5) Choosing Home Loan Balance Transfer
Home Loan Balance Transfer essentially means the provision to change lenders in the middle of the loan tenure. By availing of this facility, you can opt for a bank or financial institution that is more favorable to you by transferring the remaining loan amount from your previous lender. By doing so, you get the freedom to look for creditors who offer lower interest rates on your home loan even after the loan has been disbursed.
Apart from securing a home loan at an affordable interest rate, there are other points you must remember, like processing fees, application fees, and stamp duty, that might add to your expenses. Also, pre-closure of a loan can account for a penalty charge. With this being said, you must also remember that fulfilling the standard requirements beforehand can save you a lot of time and effort, thus making your application process stress-free.