It is heartbreaking when your Home Loan Application Gets Rejected just because your income is adequate. But in times like this, all you need to do is open up to a financial consultant who can guide you through the process of acquiring a new loan, with lower annual equated monthly installments.

Bank loans are intended to help people with financial needs. Unfortunately, however, inadequate information online and misleading guidance from other sources often prevents the benefits of bank loans from reaching those who need them. Home-loan options are available for those in lower income brackets to become homeowners, provided they meet a few requirements. Such borrowers need an identity proof and address verification, have a valid passport-sized photo, and provide proof of income.

The income and age of the borrower determine the maximum loan amount that can be given. The government has, however, started schemes to ensure that every family in India can have their own home by 2022. For this, certain subsidised loan options are available, such as Pradhan Mantri Awas Yojana, Asha Home Loan, Pragati Home Loan, SBI – Her Ghar and so on.

After you finalize a property, you need to prepare for a cash down payment as well as getting the loan approved. To apply for a Home Loan, you need to compare offers given by different lenders. Clearly tell the lender about your loan requirements (monthly repayment, amount and tenure). This will eliminate those lenders who may be unable to offer a Home Loan with attractive terms.

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. You don’t have to know English to get a loan; language should not restrict you from getting the loan. Most forms are available in Hindi and English, and some in regional languages as well.

Nowadays, banks are providing home loans for people with low credit scores. Generally, you need at least 650 points in your credit score to be eligible for a home loan, but revised policies have increased the possibilities of accessing a home loan. 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 offer 20 lakhs in home loans, while others give only three to four lakhs. Once you fill out the application form and discuss your requirements personally with a representative, the bank starts its verification process. To get a loan at a subsidized rate, there are conditions that only one earning member or a female can apply for the loan; if more than one member of the same family are applying for the loan, only one application can get approved.

It is crucial to verify that the applicant qualifies for the rebate before submitting the application to the government. Anti-social elements have been known to abuse this program and use it for illegal purposes. Banking agencies will not take actions that are designed to annoy or inconvenience you. Please cooperate with them for your own good.

After you apply for a mortgage loan, the bank will determine whether it can extend that loan to you. If your application is approved, they will send you an offer letter. You will 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 a 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 loans can be extended as long as 30 years, which is more than enough time to increase your earnings and pay off the debt. Government housing policies launched in recent years have put special emphasis on helping low-income families. The major issue facing these families is a lack of credit history. If they take out a loan to repair or upgrade their existing home, they can eventually own a house, since high-value loans are often hard to get without a good credit score.

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