Bangalore, the IT capital of India, has been propelled to be the high-tech industry centre of the country. It is the hub of various enterprises and companies with massive investments, subsequently impacting Bangalore’s real estate sector. Furthermore, job opportunities and availability of resources make the place best to live in. So naturally, individuals planning to purchase a property here are relying largely on home loans due to the cost of living in this city.
However, individuals applying for a home loan in Bangalore must know the entire process of applying for it and have a fair share of knowledge regarding the eligibility criteria and other intricacies to make the most out of this borrowing option.
Steps to apply for a home loan in Bangalore
Borrowers seeking to avail home loan in Bangalore must follow the steps mentioned below. However, borrowers must compare different home loan options available in the market to get the best home loan interest rate before setting for one. Thereafter, one can follow these steps:
Step 1: Visit the official website of the preferred lender.
Step 2: Now, move to the product page and choose “home loan”. Fill in the application form with personal, income and property details. Attach relevant documents, wait for a representative to contact, and take the application process forward.
Step 3: Make the processing fee payments. The lender will now scrutinise details like residential address, credit score, borrower’s profile, etc.
Step 4: After a satisfactory verification, intending borrowers will receive a sanction letter that mentions details like loan amount, interest rate on loan amount, loan tenor, type of interest rate applicable, etc. After agreeing to the offer letter, applicants must sign the duplicate of the letter.
Step 5: Now the lender will conduct a legal and technical check.
Once borrowers sign the home loan agreement papers and everything is devoid of legal disputes, lenders will disburse the loan principal per the agreed terms.
Home loan eligibility criteria in Bangalore
Individuals willing to avail a home loan in Bangalore must adhere to the following eligibility criteria:
For salaried individuals:
- Applicants must be Indian.
- Salaried individuals must fall in the age bracket of 23 to 62.
- Individuals must have a CIBIL score of 750.
- Must have a work experience of 3 years in a reputed MNC or private/ public sector.
For self-employed individuals:
- Applicant should be a resident of India.
- Self-employed individuals’ ages must range from 25 to 70 years.
- Individuals must have business continuity of 5 years.
In this regard, one can use a home loan eligibility calculator to calculate home loan eligibility beforehand to help him/her make an apprised decision and dodge rejection of loan application.
Documents required for availing a home loan in Bangalore
Borrowers must keep the list of documents ready to avoid last minutes hassles:
- KYC papers
- Income proof
- Address proof
- Bank account statements of last six months
- Latest salary slips or Form 16 (salaried individuals)
- ITR document/ Profit and loss statement of previous two years (self-employed individuals)
- Proof business for self-employed individuals
However, borrowers need to note that the list of documents here is indicative. Lenders may ask for additional documents from borrowers, which will be informed to the applicant at the time of processing.
Apart from meeting eligibility criteria and keeping the following documents handy, borrowers must calculate the EMI payments and choose a suitable repayment tenor using a home loan EMI calculator. Borrowers can change the inputs in the slider and compare different loan options.
Furthermore, borrowers can reap the benefits of the pre-approved offers extended by leading financial institutions on financial products, such as home loans, loans against property, etc. These offers reduce the processing time and expedite the lending process. One needs to check the pre-approved offer by entering his/her name and contact details.
To sum up, availing of a loan option is a massive financial decision; hence, borrowers opting for a home loan in Bangalore must be well versed with the application process and know about eligibility criteria and the documents required.