PNB Home Loan: Everyone desires to live in a spacious and beautiful home. You may also have a preferred location where you want to settle with your family. Thanks to financial institutions, buying a plot in your dream location and building a home is no more a distant dream.
Let’s say you have savings but don’t want to use that sum to buy or build a home. Then, the best option will be to get a home loan. You will get enough funds to buy ready-built or construct a new house from scratch through a home loan.
Getting a home loan is a long-time financial commitment. When you get the loan, you’ll pay EMIs, which include the principal amount and the interest rates that affect your monthly budget.
Below are vital aspects to consider when applying for a PNB housing loan.
Critical Things to Keep in Your Mind When Applying for PNB Home Loan
Check Your Loan Eligibility
Do you meet the conditions required to qualify for the loan? Your PNB Housing loan application could be rejected if you don’t meet the eligibility criteria.
You should be an Indian aged 21 years and above to qualify for a PNB housing loan.
Do you run a business, or are you a salaried person? Your minimum salary or income should be 15,000 INR to access a PNB home loan.
A credit score is another important factor determining whether you qualify for a PNB home loan. With a CIBIL score of 611, you qualify for a home loan at PNB. However, ensure you improve your credit score before applying for a home loan to qualify for a low-interest rate loan.
Documentation
Every financial institution requires various sets of documents to aid loan approval. Submit your PNB housing loan application form with your passport-size photographs.
Proof of residence, age, and identity are other documents you should prepare when applying for a PNB home loan. You may provide a passport, voter ID card, PAN card, Aadhar card, and driving card proof of age, residence, or identity. Remember to provide your correct documents on time for quick loan approval.
Interest rates and Loan Repayment
The interest rate you pay for a home loan affects the cost of your loan. An impressive credit score earns you a low-interest-rate loan. But you can also reduce the interest you pay for a loan by making a huge down payment.
Low-interest rates mean the cost of your home loan will be lower. You can apply for a PNB housing loan with a co-applicant to get a larger amount and with low-interest rates. When you save costs in the form of payable interest, you are left with some cash to meet other financial needs.
Ensure you apply for a loan amount you can repay without struggling. Late loan repayment comes with a cost and lowers your credit score, which affects your creditworthiness.
Can you manage to pay bigger EMIs? If yes, take a PNB home loan with a shorter repayment period and lower the loan cost.
Additional Charges
Depending on PNB housing finance reviews, it’s among lenders with minimal additional charges. You may pay loan processing up to 0.5% of the loan amount. In addition, a PNB Housing loan doesn’t attract pre-payment charges for a floating interest rate loan.
Do you aim to prepay your fixed-rate home loan using your sources of funds? You won’t pay the pre-payment fee.
Home Loan Processing Time
How quickly do you need your home loan? If you’re salaried, your loan may take 4-5 days to process. For self-employed home loan applicants, loan processing can go up to 7-10 days.
But remember, loan processing and approval can delay due to missing or wrong information. Ensure you provide all documents required to aid quick loan processing.
Conclusion
Get a home loan and own the home of your dreams. Home loans are available at lower interest rates. The online application of home loans is also making loan applications less costly and efficient.
But consider how long your lender takes to process and approve your loan. Interest rates and loan tenure are important factors you should consider as you apply for a loan. Go for a low-interest-rate loan with the most flexible repayment period.
Also Read: How Personal Loans are Good for the Indian Economy