Buying a house is a significant achievement. Most people apply for home loan plans to get the required finances to afford their dream homes. However, with the ongoing pandemic and the salary cuts that so many have been affected by, those who were looking to apply for housing loans are not so sure about this decision anymore.
In fact, getting a housing loan amid the pandemic actually has many benefits. Here are 4 key advantages of applying for a loan this year:
- Home loan applications are now processed online
Previously, submitting a home loan application meant that you had to visit a lender’s branch, talk to an executive, and then fill up the application form. However, going to a crowded place and spending a couple of hours talking to different people is not a suitable option in the midst of a pandemic. Luckily, a home loan application can now be submitted online too! Visit the lender’s website, fill up all the required details, and upload all the documents asked for. All that is needed is a smartphone and a steady internet connection. Simple, isn’t it?
- KYC documentation is completed on video
An applicant’s KYC is one of the most important steps in the loan documentation process. The documents required for home loan include address proof, identity proof, financial statements, as well as income tax returns. Earlier, this process could only be completed by going to the bank and spending hours in completing documentation, making this process something borrowers truly dreaded. Today, the documentation process hardly takes any time at all! Most lenders nowadays complete the KYC formalities on a video call, making the entire process extremely convenient.
- Lenders are offering low interest rates
The repo rate has been dropped numerous times by RBI, which has led to the home loan interest rate to drop significantly. This is definitely a positive sign for people looking to apply for home loans as the interest rate directly impacts their monthly instalments. Now, the amount adding up as interest during repayment could be quite a lot. The drop in the interest rate not just makes it easier by lowering the monthly instalments of the loan, but also helps in bringing down the total interest paid.
- Property prices are reasonable
Apart from the entire home loan process becoming easy, thanks to digital platforms, another reason to apply for this loan is the current real estate price. Property values are quite reasonable at the moment, and if you are looking for a good deal on a house, now might be the best time to do so. Moreover, lenders are currently covering up to 90% of the property value. Do note that this would depend on your age, income, and credit score. It is best to inquire about the home loan eligibility criteria of a lender before applying for one.
So, if you have plans on applying for a home loan anytime soon, now would be a great time. With home loan interest rates and property prices being low, getting a good deal could ease the repayment process too!
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