How to Apply for Home Loan with Low Income?

It is heartbreaking when your Home Loan Application Gets Rejected just because your income is adequate. A house is not only a property but a dream which many people spend their lives to realise. It is not about the size of the house; it can be big or small but the feeling of acquiring a dream. It is sad to know that even after a lifetime of struggle, most dreams shatter because of lack of funds.

Bank loans are meant to facilitate the financial needs of people who need them, but unfortunately, either due to inappropriate guidance or misleading information available online, the benefits do not reach those who need them. There are options available for lower income group to apply for a Home Loan and be a proud homeowner. The eligibility for such a loan remains somewhat the same. You need an Identity proof, a proof of address, couple of photographs (passport sized), income proof and other documents as required by the lender.

The borrower’s age and income do define the amount which can be offered as a loan. The government has, however, initiated policies to make the dream of having a home come true for every family residing in India by 2022. For the same, subsidised loan options have been launched. Pradhan Mantri Awas Yojana, Asha Home Loan, Pragati Home Loan, SBI – Her ghar, and many others are there to help you with your Home Loan requirement.

After you finalise a property, you have to prepare yourself for the cash down payment as well as getting the loan approved. To apply for a housing loan, you need to compare various offers given by different lenders. Clearly tell the lender about the amount you are planning to take as a mortgage and the repayment cycle appropriate for you. This will eliminate those lenders who may not be interested in offering a low-value Home Loan.

Next, compare the benefits provided by the lenders, you can take help of online mode to gather this information. The websites of all the banks are stuffed with such details. Ask for assistance or guidance from someone if you find checking the particulars online tricky. Language should not restrict you from getting the loan; hence, most of the forms are available in Hindi as well as English. Forms in regional languages are also available in banks of those states.

Nowadays, banks in order to facilitate the housing for all scheme, are offering Home Loans at zero credit history. Generally, you need at least 650 points in your credit score to be eligible for a Home Loan, but with revised policies, the possibilities of the dream to come true have increased. Under the policies mentioned above, you can apply for a Home Loan of up to 50 Lakhs even if your monthly income is only 10,000. Some banks give a maximum of 20 Lakhs while others offer only 3 to 4 Lakhs. Once you fill out the application form and discuss your requirements personally with a representative, the bank starts its verification process. For subsidised Home Loans, there are conditions like only one earning member or a female can apply for the loan, if more than one members of the same family are applying for the loan, only one application can get approved.

Checking the borrower’s eligibility is a crucial step, as there are anti-social elements who misuse the rebates given by the government and the aid never reaches its right place. These rules are established only to help you, no banking agency will on purpose try to harass you, and you too must cooperate with the formalities, for your own good.

After the bank’s investigation is over an offer letter will be provided to you if your loan is approved. You then need to present legal documents and qualify for valuation. In general, a maximum of 80% amount of the property value can be offered as the loan. However, for income as low as 10,000, there is no end of possibilities for help; you may get even 90% of the total value of the loan. The credit will be disbursed after the registration of the property has been filed. The tenure of the loan can be as long as 30 years, which is enough time to increase your income and pay off the debt. Policies which have been launched recently to help the lower strata of society can prove to be beneficial when appropriately understood. The major issue of this section of society is the complete absence of credit history. Even if they take a loan for the repair or construction of their existing property, there would be a hope to someday own a house, as for loans of high value, credit score is one primary factor.

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