What is Home Loan

A home loan is a secured loan proffered by banks, HFCs, and NBFCs to assist you to purchase a residential property. In this, the property you are purchasing is credited to the lender as security till the full reimbursement of the home loan.

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Why get Home Loan from PowerCash?

PowerCash offers a Home Loan as per your customer profile to provide you with the most personalized experience. Our services give you comparative scrutiny of what diverse banks are giving and guide you in your final decision.

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FAQs

How to prevent home loan rejection?
  • The below stated steps will be useful to prevent home loan rejection: Credit score: It is recommended to sustain a credit card score of 750 and above to acquire a good opportunity for your application to get approved. Financial and bank institutes depend on credit scores to assess your credibility and loan reimbursement history. Thus, you must maintain your credit score to prevent home loan rejection.
  • Inadequate Income: Financial institutes and banks go through your monthly income to witness your condition for repayment of your equated monthly installments(EMIs). It is always desirable to take a home loan with an EMI of at most 40% of your monthly income. Lenders have minimal employment and income requisites that have a crucial part in the loan-approval procedure. Ensure that you fulfill all the needs before applying for a home loan.
  • Several applications for a home loan in a short period: If you apply for a home loan from diverse lenders, it shows to financial institutes and banks that you are in need to credit and require to apply for numerous sources to fill the gap. Lenders consider that you will not be capable to repay your loan that directs to the rejection of your home loan application.
  • Present loan portfolio: If you have many loans to repay, then your lender may think that you might not be able to take EMI based on present income, which will be subject to your home loan rejection. Thus, it is better to apply for a home loan after you have paid for other loans to mitigate your EMI burden.
    • How to enhance home loan eligibility?
    Prospective home loan borrowers can improve their home loan eligibility in the subsequent ways:
  • Enhance your credit score: A proper credit score enhances your opportunities for loan approval and you can get a home loan with better conditions and low-interest rates. Maintaining a credit usage ratio below 40% or paying your bills on time are the ways that can help you enhance and sustain your credit score.
  • Pay higher down expenditures: Financial institutes provide 75-90% of the property value. This indicates that the rest 10-25% of the property values need to be given like down-payment by borrowers. To raise your home loan eligibility, make a high contribution to your home loan down payment. By doing this, you will lower your LTV ratio that leads to improvement in home loan eligibility.
  • Put in an earning co-applicant: Append an earning co-applicant and acceptable repayment aptitude to enhance your home loan eligibility. A combined home loan may even assist you to avail a high loan amount and allowance on your home loan interest rates(provided the co-applicant is a woman).
    • What is meant by a home loan balance transfer?
    • Home loan balance transfer means that enables home loan borrowers to shift their home loan to a novel lender for better loan terms or low-interest rates. All lenders give the home loan transfer feature to their customers. Frequently paying your loan EMIs is one of the aspects that aid you give a loan transfer facility. But, before deciding on a home loan transfer, conduct a cost-benefit examination. Evaluate the difference between the interest rates given by the 2 lenders, the amount of the loan left owing, and the rest tenure.
    • A home loan balance transfer is not a proper alternative if the exceptional loan amount is low if only some repayment years are left or the difference in the interest rate is directed to insignificant savings. Also, remember to know about the processing fee charges that the novel lender would be charging for the balance transfer.
    Which bank is apt for bank loans?
    Some of the well-known banks giving home loans in India are ICICI Bank, SBI, HDFC Bank, Axis Bank, PNB, Bank of Baroda, and Canara Bank. Moreover, the apt home loan should sync with your loan requisites. Thus, to avail the best bank for a home loan, examine your requisites. Don't forget to check the complete deal when comparing home loan offers. Apart from the interest rate, pay attention to different parameters like loan repayment and processing fees, and prepayment policies.
    How much credit score should I avail to obtain a home loan?
    Credit score is a number between 300-900 that shows how you managed your credit in the past. It not only influences the opportunities of your loan approval but also the interest rate at which the sum is borrowed. Many lending institutes provide the lowest rates to borrowers who hold credit scores of 800 or more that. Generally, a credit score between 750-900 is regarded as good by lending institutes. Keep in mind the more the credit score, the more are the chances of getting your home loan permitted and obtaining a lower superior interest rate. Though your credit score is low, you can enhance it by paying credit card bills timely, lowering your debt, and maintenance of old credit card accounts in proper condition.
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