Home loans make your life easy and smooth. You can always apply for a home loan a reputed bank and get online loans so that you can buy your dream house. You can always apply for the Online Lones as it is less cumbersome. Whatever reason it is, you can apply for the home or car loan online. But there are certain factors that you need to keep in mind before you apply for home loan. One of them is your credit score.
When you submit your application for a home loan, the banks go through your application thoroughly and check your credit history. If you have a good credit history along with good creditworthiness, you can get loan easily. They check these things to evaluate whether you can pay back your loan in time. The rejection rates of home loans have increased up to 30 percent. But if you look at certain things, then you do not have to worry, and you can get loan easily.
Tips on how to get your home loan approved, even if you apply Online Loans :
1) Proper Bank Statement
To get a home loan, you need to submit a bank statement to the officials to get your loan approved easily. Bank statement shows your income as well as your expenses. It helps the officials to evaluate whether you can repay back the loan, along with interest, in time. You have to give a recent bank statement. A bank statement that shows that no EMI was skipped or no checks were bounced gets approved easily.
2) Non-liquid Assets
Non -liquid assets include your parent’s income or your spouse’s income. It can also refer to your social standing. These assets help you to earn the trust of the bank and get a loan easily.
3) Credit History
If you had taken the loan before and paid it on time, then it will help you to get a loan easily. Usually, defaulters do not get their loans approved easily. The bank keeps a check whether you have cleared your credit card bill as well. All these will be reflected in your CIBIL report. If you want, you can also use the CIBIL report of your parents or your partner.
4) Get A Good Guarantor
A good guarantor will help you to earn the trust of the bank. If the guarantor has a good credit history, income, and credit score, you will get a loan easily. Always try to get a guarantor who has a good relationship with the bank and is associated with them for a long time. If you want your loan approved easily, then you need a good guarantor. However, guarantors are only required in some cases, when the credit history of the person who has applied for the loan is bad.
5) Building A Long-Term Relationship With The Respective Bank
If you plan on getting a loan from a bank, then you may want to make them believe that you are interested in having long-term relationship with them. You might want to open a pension or children account over there, or you might want to invest in mutual funds. This will help them to get the assurance that you will not only buy their products, but they can also use them as the security deposit in case you fail to pay your loan back in time. Home insurance is another way to strengthen your relationship with your bank. Whether you know it or not, but Home insurance helps to keep your house in good condition.
6) Income And Employment
Banks are more comfortable to give out loans to those who have been employed by the same employer for more than two years. You have to have a proper source of income and even give minute details about promotions and bonuses if you want to get your loan approved easily. Even if you have your own business, you need to show that you have a stable source of income to win the trust of the bank officials. This might help you to get a loan easily.
7) Prior Commitments
A good guarantor will helpBanks do not want to give out loans to those people have prior commitments. If your prior commitments and repayments take up around 42 percent of your monthly income, then the banks do not accept your application. Thus, you have to take care of your other liabilities first if you want to get your loan approved easily. you to earn the trust of the bank. If the guarantor has a good credit history, income, and credit score, you will get a loan easily.
Always try to get a guarantor who has a good relationship with the bank and is associated with them for a long time. If you want your loan approved easily, then you need a good guarantor. However, guarantors are only required in some cases, when the credit history of the person who has applied for the loan is bad.
These are the few things you need to keep in mind before you apply for a loan. You might even want to apply for online loans. Whether it is a car or a house, you can always apply for the home or car loan online. Some people might be against it, but if you apply for a Online Loans, you will be saving both, your time and effort.
Best Bank To Online Loans & Offline Loans Approved
There are mainly two kinds of banks from where you can get a loan – Government Bank and Private Bank. There are several pros and cons associated with each kind of bank. You have to keep these things in mind to get a loan easily. In case of Private Banks, the processing fee is usually very high because they have to pay the DSA or Direct Service Agents who offer loans at your doorstep. In Government Banks, this fee is pretty low as they usually charge 0.25 percent or a minimum fixed amount as the processing fee.
The private banks are fast with their paperwork and help to get your loan approved easily. You can even apply for Online loans. This is because the DSAs have to fulfil a fixed sales target when it comes to loans. In Government Banks, the paperwork for loans takes time, so it is a slow but steady process. The interest rate remains fixed when it comes to Government Banks. However, in Private Banks, the interest rate increases as the REPO rate of RBI increases and vice-versa. So there is no stability when it comes to interest rates in Private Banks.
There is no question of Pre-payment in Government Banks, but in Private ones, you have to pay some of the prepayment charges. In private banks, a minimum amount is charged if bank officials offer you’re their services. But in case of Government Banks, no such charge is present, and you can come in as many times as you want. Thus, it can be seen that if you want to save money in the Long-run, you should go for Government Banks but if you need the loan urgently, then Private Banks will be more beneficial for you. So these are some of the things you have to keep in mind to get a loan easily.
We hope all your doubt’s about Online Loans have been clear and also we are sure you will get a loan approved soon. Keep visiting Mrpandya for financial tips, tricks & advice