Popularly known as the ‘silicon valley of India’, Bangalore is one of the thriving metropolises of this country. The city is well-known for its IT industry and is one of India’s leading hubs for start-ups. Resultantly, Bangalore is generating substantial employment, attracting a workforce from across the country.
To meet the accommodation requirement while working in this city, individuals can resort to a home loan in Bangalore. Available against attractive interest rates and longer tenor, one can apply for this credit instrument to meet all associated financial needs.
How to apply for a home loan in Bangalore?
Here is a step-by-step guide on the application process of housing loans –
Step 1: Go to the website of a lender of your choice and navigate to the home loan application form
Step 2: Fill out this form with relevant details and enter the pin code
Step 3: After initial approval, you need to submit relevant documents
Step 4: The lender will then contact you for property verification, and after a successful inspection, they will issue a sanction letter comprising loan amount and other information
Step 5: Financial institution will then disburse the loan amount within a short while
Apart from the easy online process, individuals can also visit the nearest branch office of their favoured lender to apply for this financial product.
Besides knowing the process of applying for housing credit, one should be aware of the eligibility criteria he/she needs to meet and the documents required to complete this process.
Home loan eligibility criteria
Here are the eligibility criteria for home loan that one needs to meet to secure necessary funding –
- Age: 23 to 70 years
- Employment type: Salaried and self-employed
- Work experience: 5 years of business continuity for self-employed and 3 years for salaried individuals
- Monthly income: Depends on the requirement of a lender and an applicant’s city of residence
These parameters are lender-specific, so before applying, refer to a financier’s requirements and abide by them for hassle-free loan processing.
Alongside the eligibility requirements, one needs to submit the documentation required here to complete this application process. Here is the list –
- KYC papers
- Income proof (salary slip and form 16 for salaried individuals and profit and loss statement and business turnover details for self-employed individuals)
- Proof of business vintage for self-employed individuals
- Bank account statement of last six months
Furthermore, individuals may need to submit additional documents if specified by a financial institution.
A home loan in Bangalore is the easiest and the most affordable way to invest in a property in this city. Hence, before opting for one, prospective borrowers should learn a bit more about this financial product to make a knowledgeable decision.
4 things to know about home loans
Here are 4 things that one should know about home loan –
- Income tax benefits are available
One of the primary advantages of this financial product is that it offers an exemption on income tax. The tax benefit on a home loan is available on both principal and interest repayment. Here are the further details –
- Section 80C: Provide income tax benefit of up to Rs.1.5 lakh on principal repayment, including stamp duty and registration charges.
- Section 24B: Tax deduction of up to Rs.2 lakh is available on interest payment.
- Section 80EE: Offers additional concession of up to Rs.50,000 for first-time home buyers.
- Section 80EEA: Benefits under this section is only available to first-time home buyers under the affordable housing category. Also, individuals opting for this deduction will not be eligible for deductions under 80EE.
- Interest rates are currently affordable
After the RBI’s decision to reduce policy rates, the housing credit market saw a significant reduction in interest rates. Hence, currently, the applicable interest rate on this financial product is relatively low.
Individuals can take the help of online home loan calculator to compare different loan offers and find a suitable deal.
- Top-up loan facility helps to meet additional expenses
Popular lenders often extend top-up loan facilities to customers with a clean repayment record. This additional fund is available on top of an existing housing loan and is available with similar interest rates. The biggest benefit here is that it does not come with any usage restrictions. Hence, individuals can meet an array of financial needs with this fund. They can invest in housing repair or pay for any personal expenses.
- Streamline the loan application process with pre-approved offers
Financial institutions also extend pre-approved offers to their current customers. These offers are designed to streamline the loan application process and save time. They are available against financial products like home loans, loans against property, etc. Borrowers can now check their pre-approved offers by submitting their essential contact details.
Availing of a home loan in Bangalore is not a hassle anymore. However, before doing so, one must go through the loan terms and conditions and understand the pre-requisites of housing credit to avoid future complications.