Make your dream of owning a home a reality with a few clicks. Now with several reputed banks offering end to end net banking services on their website, you can apply for a home loan online and buy your dream house effortlessly. However, buying a new home requires a lot of monetary investment. Considering the ever-increasing housing and property costs, banks and financial institutions provide financial aid that lets you borrow a large amount of money for your dream house.
Either you take a home loan online or physically go to the bank, a rate of interest on that amount will be charged as fees for borrowing the money. Thus, to pay back the entire amount along with the rate of interest levied on it by the bank or the lending institution becomes your topmost priority.
To opt for a home loan online is a little different from getting it physically from the bank. So, to walk you through the entire process, here is a step-by-step guide for you on how to take a home loan online:
Step 1: Decide the Bank You Want To Borrow From
Before applying for a home loan online, finalize the bank or a financial institution you want to borrow from. It would be best to compare the interest rates offered by the banks and then go for the one that is offering the lowest.
Step 2: Register or Sign Up On the Website
Before you hit the apply button, it is mandatory to register or sign up with the preferred bank. By registering or signing up, you enter crucial information about yourself required by the financial institutions to further proceed with your request.
Step 3: Decide the House or Property You Want To Buy
To get a clear idea of the amount you need to borrow, decide on the property or the land you are willing to purchase. This will further help you calculate the EMI and other future financial obligations that will follow after the loan is approved.
Step 4: Check Your Credit Score
Whether you are applying for a home loan online or by visiting the bank, you need to maintain a good credit score. It is essential to have a decent credit history and a credit score of 750 or above to get your loan amount approved. You can achieve a good credit score by paying your credit card bills on time, making timely repayments and not over-borrowing.
Step 5: Check If You Meet All the Eligibility Parameters
Before applying for a home loan online, visit your preferred bank’s website and check their eligibility criteria to approve home loans. Then, decide for yourself if you qualify those parameters and if you are eligible for it or not. Move ahead with the process if you are, and step back if you aren’t.
Step 6: Evaluate Your EMI through the Home loan EMI calculator
When applying for a home loan online, you can calculate your interest rate beforehand through a home loan EMI calculator. This revolutionary tool lets you calculate your EMIs. The whole point of calculating your EMI before is to become aware of your upcoming financial obligations and see if you can meet them.
Step 7: Decide the Type of Rate of Interest
There are two types of Interest rates levied on home loans – Fixed and Floating Rate. The interest rate remains the same throughout the loan repayment tenure in the case of a Fixed Rate. On the other hand, a Floating Rate changes from time to time according to the base rate determined by RBI or other market conditions.
Step 8: Choose Your Loan Tenure
You can choose the length of the loan repayment tenure according to your monthly income and expenses. A long term loan allows lower interest rates that are paid for a long time, and a short loan tenure lets you get rid of the instalments sooner but with higher EMIs.
Step 9: Arrange All the Documents to Be Submitted
Thoroughly go through the list of documents requested by the bank or the financial institution and upload them on their website. Every institution has a different requirement, but address, identity, income, and birth proofs are mandatory everywhere.
You can apply for home loans online for a smooth, hassle-free process and purchase your dream house. Avail low-interest rates and personalized home loan options from renowned banks like Axis Bank that offers home loans online starting from Rs. 300,000.