Home Loan: If you are thinking of taking a home loan, then this is the right time to do so. Three big public sector banks of the country have waived the processing fee on home loans. These two banks are State Bank of India, Punjab National Bank and Bank of Maharashtra. Let us tell you that before taking a home loan, one should keep information about the interest rate as well as the processing fee. The processing fee is payable only once on the loan.
SBI has decided not to charge processing fees till 31 August and Punjab National Bank till 30 September. The interest rate for home loan in PNB starts from 6.80 per cent per annum. On the other hand, SBI is giving home loan at 6.70 percent interest rate.
Bank of Maharashtra is offering 100% discount on processing fees on retail loans. Home loan is also being covered in this. Along with this, the bank has also waived the processing fee for its gold loan and car loan. This scheme is valid till 30 September 2021. The bank is offering home and car loans with interest rates starting from 6.90 percent and 7.30 percent.
Keep these things in mind while applying for home loan
Know loan offers
- Keep complete information about loan offers from time to time from banks.
- Do not take a loan in a hurry, check out the loan schemes of various banks first and compare them among themselves. Then apply.
Keep in mind the CIBIL score
- CIBIL Score shows your credit history. It plays an important role in getting you a loan.
- Through this, banks see whether you have taken a loan before or how you have used credit cards etc.
- Credit score shows repayment history, credit utilization ratio, existing loans and timely payment of bills.
- The credit score is in the range of 300-900. A score of 750 or more is considered good.
- That is why it is important that you make your credit score good. For this, make a habit of paying the loan or any other EMI and credit card dues before the stipulated time.
- Check the credit score regularly so that you can improve it in time.
- If you have a good loan repayment record, then understand that your CIBIL score will be equally good.
- Do not take more than one loan at a time as it affects your credit.
Keep in mind the fixed obligation to income ratio
- The Fixed Obligation to Income Ratio (FOIR) shows how much installment of the loan you can pay every month.
- Banks definitely see the FOIR while giving loan.
- This shows what percentage of your existing EMI, house rent, insurance policy and other payments are your current income.
- If the bank takes all these expenses up to 50% of your salary, then the home loan application may be rejected.
You can apply for Combined Home Loan
- If home loan is not available then joint home loan is a good option.
- Taking a joint home loan reduces the risk of the lending institution.
- Make someone you know as a co-applicant who has a stable income and a good credit score.
- Adding a co-applicant increases the chances of getting a loan.
- On taking a joint home loan, both the applicants will be able to take advantage of income tax deduction.
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