In this busy world, Everyone wants to have their own dream house at the end of the day, but only few people have achieved this dream.Buying a home is also becoming a difficult task these days owing to the mounting real-estate prices but everyone can achieve this dream with easy home Loan options available in the market. You will ask ‘How?’, ‘What?’ and ‘Where?’. This article will tell you everything you need to know about Home Loans for people with less income or unstructured income. People aren’t aware of schemes that offer various type of Home Loans.
An individual can apply for a Home Loan with a co-applicant as well to distribute risk between you and the co-applicant.
Let us look at the various schemes available where applicants with even bare income can fulfill their housing dreams with convenience.
New Home Loan Scheme (NHLS) empowers the ordinary Indian middle-class people in building their dream homes with adequate funding at competitive interest rates.
Important Points about NHLS –
- Indian nationals: Salaried or self-employed can apply for this scheme. Resident Indians with low income can apply for this scheme, subject to the requirements.
- Hassle-free documentation: it provides freedom from structured income documents. Income proof documents along with identity documents like Aadhaar Card are required to apply for this scheme.
- The maximum Home Loan amount: It can be up to 20 lakh. Home Loan would be financed for a maximum of 20 years, subject to eligibility assessment by the housing finance company.
- Co-applicant is required in the property registration and home loan structure.
- The applicant can apply for the scheme even at 0/nil credit history. Usually, a home loan is not possible if your credit score is below 650.
The government of India aims to build 2 crore new houses under its progressive mission “Housing for All by 2022”. NHLS is an affordable housing mission. It will empower people to purchase their Dream Home.
- Points to be considered while making an application for home loans.
- Reduce your existing liabilities.
- Pay EMI’s on time to enhance your credit score.
- Job stability – don’t switch too many jobs. Lenders look for borrowers who have worked in a company for a prolonged time.
- Keep the down payment ready with you; it will help in easy home loan processing.
How to increase your home loan eligibility:
- Clear outstanding dues, loans.
- Clear credit card debts.
- Have a co-applicant will help in splitting the risk.
- Show other income sources like a dividend from an investment.
- Which is the best bank for a home loan in India?
Some Banks / NBFCs / HFCs offering the best home loan in India are :
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- State Bank of India (SBI): SBI Home Loan to Non-Salaried. The minimum age should be 18 years. Loan Tenure can be up to 30 years. The minimum Loan Amount can start from Rs. 50,000/- and the Maximum Loan Amount extent is Rs. 50 crores.
- HDFC Ltd.: HDFC Reach Home Loans covers 80% of the property cost. Specially designed loans for purchasing a new or an existing home. You can apply individually or jointly for Home Loans. All proposed owners of the property will have to be co-applicants. The tenure of the loan (Maximum 30years) is also dependent on the customer’s risk profile, age of customer at maturity of the loan, age of property at loan maturity, and others.
- Kotak Mahindra Bank: It is available for a salaried individual with a minimum gross income of Rs. 20,000/- for people living in Delhi, Mumbai, Bangalore, Pune, and Chennai and Rs. 15000/- for people living in other cities. Kotak Home Loan not only offers you an attractive interest rate but also guides you through the entire process right from your home with zero processing fees for online applications.
- Axis bank: Axis bank offers minimum home loan amount is Rs. 3,00,000/- at an interest rate starting from 6.75% with easy monthly EMI(Equated Monthly Installments) options with longer tenure. They provide home loan services at your doorstep.
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- Bajaj Housing Finance Ltd: Bajaj Finserv Home Loan provides home loans of up to Rs. 3.5 crore at an interest rate starting from 6.90% for a flexible period of 20 years. The Home Loan is offered to both salaried and self-employed individuals.
- LIC Housing Finance Ltd: LIC HFL offers a wide variety of home loans that will fulfill your needs at a low interest rate. Their home loans are offered to all types of customers like salaried, self-employed, professional, NRIs, etc. The Types of Home loans it provides are – Home loans for Resident Indians, Home loans for Non-Resident Indians, Pradhan Mantri Awas Yojana, Plot Loans, Griha Varishtha – Home loans for Pensioners.
- Aditya Birla Housing Finance Ltd: The Minimum Age of the applicant should be 21 Years and Maximum Age of 60 years for salaried, 70 years for self-employed. Processing Fee For Home Loan is 1% of the loan amount.
- PNB Housing Finance: PNB Housing Finance is a branch of Punjab National Bank which offers home loans at just 7.35% p.a. depending upon the nature of employment and credit repayment history. PNB housing finance offers Loan up to 90% of the cost of the property for a maximum 30 years as repayment tenure. The processing fee is charged at the rate of up to 0.50% of the loan amount (plus taxes), subject to a minimum of Rs.10,000.
- Shriram Housing Finance:Shriram Housing Finance offers home loan at rate of interest starting from 10.49% p.a., for a maximum 25 years with maximum loan amount of Rs.10 crore.
Sanction/Approval Process
The approval of loan is the most process in any loan process. This can be either have a positive result or loan can be rejected. It is all depend on the bank If it is not satisfied with any of the documents provided by the client then our loan can be rejected from the bank. And, if everything goes well, the loan will be approved from the bank. Bank check the following details to approve the loan:-
- Qualification, age, and experience of the borrower
- Bank history of the borrower.
- The monthly or yearly income.
- Nature of Job or Business.
- Ability to repay the loan amount.
