What Are the Benefits of Applying for a Home Loan Online?

Buying a house requires substantial funds, and there are different ways to organise that. While liquidating investments is a means to do it, as per financial experts, opting for a suitable financing option is the right way to approach it. And the right option here is a home loan.

These tailored options ensure you get the funds to buy the property. Now, there are two ways to apply for it: offline, a more traditional approach, and online, which is more convenient. However, before you go ahead with the online home loans, let’s understand the advantages of this process and all the other details.

Benefits of Taking an Online Home Loan

Here are some of the advantages of opting for a housing loan online –

Easily accessible: Online applications for a home loan have become easier for people living in remote areas. You can apply for it from anywhere if you have an internet connection.

Highly convenient: An online application for home loans can save you a lot of time and effort since you can apply for it from your home, office or anywhere at any time you want. You do not have to physically visit the branch of your chosen bank or wait for the scheduled appointments with your lender to apply for it.

Easy documentation: Submitting your documents through online applications can be much safer than submitting or faxing documents by physically visiting the branch, which can cause document loss. Online portals of loan applications offer a safe option to scan and upload the documents required for the home loan, saving you time and reducing the risks.

24/7 availability: Another mention-worthy benefit of an online housing loan application is that it is available 24/7. Unlike bank branches with limited working hours, online applications allow you to apply for a home loan anytime.

Updates regarding the application: Online loan portals provide a platform to track your loan application’s progress. You can see the current status, receive notifications, and contact your lender directly through the portal or email. 

Multiple channels: You can apply for a home loan through more than one platform. You can use your preferred lender’s official website or mobile app. Either way, the application process remains largely the same, and you need to complete all the formalities followed by document submission to get it done.

These are highlighting the benefits of applying for a home loan online. This is a more convenient and hassle-free way to find the funds required for the property purchase.

Documents Required for Housing Loan

Although a housing loan is easy to get, it is easier when applied online. But even in digital platforms, lenders require few documents to approve your loan application. If you have all the required documents, your loan will get approved even faster.

The documents required are listed below:

  • Identity and address proof: You will need a government-issued identity proof like a PAN card, Voter ID card, Aadhaar card, driver’s licence, passport etc. Moreover, you need to submit your address proof which involves your utility bills (phone or gas bills)
  • Financial statement: This includes bank statements. The lender might need it to see the record of your transactions in recent months to know about your repayment capabilities and financial stability.
  • Income proof: This may include salary slips, income tax returns etc. By submitting these documents, you show the lender that you are financially stable for taking a home loan. A point to remember here is that this will be different for salaried and self-employed individuals.
  • Employment details: Here, you need to present your employment details. This will be an appointment letter for salaried individuals; the self-employed need to provide business registration details.
  • Property documents: If you have selected a property to buy, the lender will want to see the property documents, such as the valuation of the house, insurance details and purchase agreement.
  • Credit report: Lenders may want to see your credit profile to know your creditworthiness and repayment capabilities. Your loan application will likely get approved if your credit score and repayment records are decent.

This is a general list of documents usually required for a home loan application. However, the requirements may vary depending on the lender. Before applying for a home loan, discuss this with your lender.

Eligibility Criteria

Besides keeping the aforementioned papers, you need to meet the following prerequisites – 

  • Age: The applicant must be at least 21 to qualify for the loan.
  • Creditworthiness: A good credit score shows that you are financially responsible and are capable of timely repayment. Your credit score should be on the higher side to get a smooth approval process for your loan application.
  • Income stability: You need to be financially stable to get a loan. Lenders prefer an applicant who has a steady source of income. Also, the individual should be employed with the current company for some time, or the business must have the required vintage to qualify.

Similar to the documents, these parameters are also lender-specific, so talk to the financial institution of your preference and learn more.

Parting Thoughts

Digitisation has affected every sector, and finance and banking are no exceptions here. As a result, financial institutions also strive to offer their customers the best online services. Hence, the facility to apply for a home loan online and other facilities. Nevertheless, it is always ideal to learn all about the application process and keep the documents handy to avoid delays.

 

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