Buying a house is one of the biggest decisions in anyone’s life. In fact, it is a once in a lifetime decision for most people. However, to reach this goal, one may require a home loan.

While earlier getting a home loan sanctioned was a long drawn process. Till today, it is difficult for the lower-income groups to get loans as they don’t have income proof documents. Thus banks and several other non-banking financial companies deny in providing loans to lower-income groups. 

Here came Shubham, a private housing finance company that has been catering to the home financing needs of the cash income sections of the society.

Here are a few things you should get acquainted with to understand how the process works and to avoid any surprises later on. Take a look at some of the essential things to consider before you opt for a private home loan

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1. Understand Loan Specifications: 

Research about the loan amount and compare all the features provided by different home loan providers. This would include your types of loans, interest rates, tenure, pre-closure, prepayment charges, documents, etc.

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2. Additional Charges:

Additional charges are one of the most important things to know before taking a home loan as most lenders levy charges such as processing fees, late payment charges, prepayment charges, etc. on the basic loan amount. These charges can add up to form a substantial amount of money, and some of them are non-refundable. So make sure that you discuss these charges beforehand.

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3. Know your CIBIL Score: CIBIL score plays a crucial role in your loan’s approval or rejection as well as the kind of interest charged. An individual who desires to avail of a home loan should maintain a good credit score.

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4. Documents: Although the home loan application form provides a checklist of all the necessary documents, the legal documents will ensure quick and efficient loan processing. At Shubham, we offer home loans with minimal documentation.

Only the following documents need to be submitted while applying for Shubham Home Loans.

  • Duly filled application form
  • Proof of identity like PAN Card, Voter ID, and passport
  • Address proof – ration card, electricity bill, etc.
  • Property-related documents
  • Bank statements or passbook
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5. Know your Home Loan eligibility: The first step to avail of a home loan is to know how much home loan you’re eligible for. It is calculated after considering various factors such as monthly income, current age, retirement age, Cibil score, etc. You can also avail of the Shubham Housing Loan EMI calculator to calculate the amount you can borrow.

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6. Down Payment: Generally, when you avail of any home loan, you are required to pay a portion of the total home loan amount as a down payment and the rest of the amount is converted as your home loan EMI, which you’ll be required to pay monthly. But if you have surplus cash available, you can increase the down payment as it would help you to save on the interest to be paid in the future.

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7. Repayment Tenure: Your home loan EMIs depend on the tenure of your home loan. A home loan is sanctioned for a maximum period of 20- 25 years, depending on the customer’s eligibility and the EMIs are directly dependent on your home loan tenure. With shorter tenure your monthly installments will increase but eventually, it’ll help you in lessening your home loan rate.

The fundamental rule of any home loan is that it should be repaid on time. Thus, it is advisable to choose a short repayment tenure with higher EMIs.

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8. Choose Suitable EMIs: EMI is the monthly outflow that goes towards repaying your loan. It is recommended to ensure that your EMI doesn’t exceed 45% of your total income. You can easily calculate EMI through the Shubham EMI Calculator

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9. Read Fine Prints: This is one of the most important things to know before taking a home loan. You should read each and every statement carefully and ensure that you understand the terms before signing the agreement.

Housing Loan EMI Calculator

10. Spend Cautiously: A factor that follows is the monthly expenditure. It is advisable to follow a strict budget to meet your EMIs, to maintain credibility, and to avoid an overdue or an increased interest rate.

With all the aforementioned points in mind, seeking a home equity credit becomes far more simplified.

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