You may want to buy a home using a Home Loan early in life, but may also find the long-term commitment intimidating, especially with regards to managing it. But, don’t push this prudent thought aside! Owning a home at any stage, even if it is your 20s, is a very smart move as it helps you secure your future. As far as managing the loan is concerned, a Flexi Hybrid Home Loan suits your situation better than a regular Home Loan. Not only is this loan variant easier to manage, but it is also equally convenient to repay. You can pay just interest as EMI for the initial 4 years of the tenor, and then pay principal and interest together as EMI from the 5th year onwards.
But before you apply here is a look at a few important points that you need to consider.
Understand the Eligibility Criteria and Documents Required
The primary eligibility criteria for the flexible hybrid Home Loan are as follows:
- You should be below 50 years of age at the time of the sanction
- The property that you are buying should not be under construction
Once you meet the criteria, you only have to submit a handful of required Home Loan documents that you’re likely to have within easy access. These include basic KYC documents, financial statements and a copy of the papers of the property that you are pledging. If you check both these boxes, you can proceed with applying.
Analyse the Loan with Regards to its ease of Repayment
Before you take any loan, whether it is to buy a home or to finance other needs, you must always check if it is affordable to repay. Fortunately, the flexible hybrid Home Loan ranks high in this regard. This is because of the principal holiday that you get at the start of the tenor. The first 4 years when you don’t have to pay towards the principal give you ample time to plan your finances. Also, by the time this duration is up, your earning capacity and affordability are also likely to increase.
Also, if you take a Flexi Hybrid Home Loan from Bajaj Finserv, you can enjoy additional benefits. Not only do you have to pay interest only on the amount that you use and not the entire loan, but you can also enjoy no reduction in the sanctioned loan limit during the principal holiday period.
Check the Fine Print Regarding Repayment Terms
Apart from the rate of interest and the EMI payment structure, also pay attention to the extra fees and charges that you have to pay. If these are high, the Home Loan will no longer be affordable as your total cost of borrowing will go up. For example, when you avail this loan from Bajaj Finserv, you don’t have to pay any charge when you make one or many prepayments. You can do so at your discretion and incur no extra charges.
Understand How to Apply for the Loan
Finally, take a look at how you can access this loan. Most lenders will allow you to apply for this loan online as well as offline. Having the online application method at your disposal is a positive sign. This is because this method is far simpler to use. You can fill out a form online, submit your documents and then await confirmation of the loan amount. After this, the documents are verified and the loan is disbursed directly to your account. You don’t have to concern yourself with visiting the lender’s branch to submit the form or to collect a cheque and then cash it.
Follow these steps to understand the flexible hybrid Home Loan and to prepare yourself with regards to how to apply for it.