A Complete Guide to Select the Best Home Loan Provider

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You can get a lump sum credit through a home loan from several lenders like Bajaj Finance, Union Bank, etc., and meet the credit shortages required for building your house. It is generally a long-term financial obligation in which you can choose a repayment period of up to around 20 years, depending on the terms of your lender. So, before engaging in the long commitment of repaying your Bajaj Finance Home Loan or the credit availed through other lenders, it is necessary that you check various aspects to compare the cost-effectiveness. 

Things to Check before Choosing a Home Loan Provider 

Here are some major aspects that you should ideally check while selecting a lending institution for your home loan requirement:

Maximum Loan Amount

You also need to ensure that the lending institution you choose provides the home loan amount you require. If it offers a lower amount, you may need to arrange capital from other sources as well, which can push you into financial difficulty later on. This is because after you are engaged in a loan, lenders may reject further borrowing requests till the previous repayment is completed. If your projected expenditure for the construction of your house is large, you can take Bajaj Finance Home Loan. It offers a credit of up to Rs. 5 Crores at easy-to-meet eligibility criteria.

Interest Rate

The interest rate is the primary thing that all borrowers should check before taking a home loan. A lower home loan interest rate not only reduces the total borrowing cost but will also keep your instalment amount low. As a result, you can meet your monthly commitments with your lending institution more comfortably. 

Processing Fees and Associated Charges

In a home loan, you need to bear processing fees and other smaller fees, such as prepayment fees, valuation charges, stamp duties, and memorandum registration charges. All these charges also leave an impact on the overall cost of borrowing. This is why checking them is a must while selecting a lending institution.

In this regard, you can consider checking the home loan offered by Union Bank. Besides a low Union Bank home loan interest rate, you can also secure the credit at a nominal processing fee (0.50% of the total borrowed amount, with an upper cap of Rs. 15,000 only) and zero prepayment charges.

Eligibility Parameters

To ensure that only creditworthy individuals get the credit, home loan providers define their eligibility criteria. It reflects the several parameters that you need to meet to get the credit facility, such as the minimum required age, income, professional experience, etc. There may be lending institutions that are stringent on this front and resultantly, it may become difficult to qualify for the loan. To confirm that you do not need to face rejection on your credit request, you need to choose a lender that comes with eligibility standards favourable to you.

Pre-Approved Loans

Pre-approved home loan offers are special and readily available deals about loans for the existing customers of lenders. After accepting this loan offer, you do not have to wait too long to complete the application process. This is mainly because all the documents of those borrowers are already there with the lender. Bajaj Finance is one of the lending institutions in India that offer this pre-approved loan facility. You can get this tailored offer on Bajaj Finance Home Loan if you borrowed any credit from the lender before.

Allowed Repayment Period

You may need to borrow a large amount of credit through a home loan, depending on the total cost of construction or purchase of your home. If the allowed tenure is tight and short, you may find it difficult to repay. This is because, in a shorter repayment period, the monthly instalment becomes higher. With a Bajaj Finance Home Loan, you can easily address this difficulty as it lets you choose a tenure of up to 30 years.

This way, you can choose a lender that can offer you the home loan at advantageous terms. In this regard, you also should know how you can secure an attractive interest rate from your chosen lender.

Tips to Get a Low Home Loan Interest Rate

You can negotiate with your lender for reducing the applicable interest rate if you meet the following conditions:

  • You need to ensure that you meet the eligibility criteria, such as income, age, work experience, etc. properly, and with a large margin if possible. 
  • When you go for a joint home loan, the lender gets an assurance that it can raise the lent capital from your co-applicants, and resultantly agree to offer a low-interest rate.
  • You also should ideally make a large amount of your own investment towards your home construction.

Besides this, comparing different lenders is also necessary to find a lender that charges a low-interest rate on the home loan.

Through a Bajaj Finance Home Loan, you can arrange the necessary finance for the construction or purchase of your residence (flat or home). However, before borrowing, you need to verify several aspects, including the interest rate, instalment amount, charges, etc. This way, you can ensure that the total borrowing cost of the loan is not high and you can easily repay it.

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