5 Advantages of opting for an online home loan amid Coronavirus
Moving to a new home is a dream coming true for many. If you have been living in a rented home or your family is growing, you might have made plans to buy a home through regular savings. But the global COVID-19 pandemic has changed the world in an unprecedented manner. Many people have pushed their plan for a home purchase further because of imposed lockdowns, restrictions, and job losses. Now that things are slowly returning to normal, you can bring your plan into action again through an online home loan.
There are several advantages to choosing the online home loan route to buy a home this year.
- Online Application Processing
For many individuals, a home loan application implies visiting the nearest branch office of a bank and dealing with the executives to apply for the same. However, things have changed for the better during the current pandemic. You can submit an online home loan application to the bank or lender of your choice. The process is quite easy and hassle-free. All you need to do is to follow the well-defined steps. Enter personal details, upload the required documents, and you are done with the application part.
- Minimal Physical Contact
Worried about meeting bank professionals to borrow a home loan these days but eagerly want to buy a home? There is an online home loan option for you to realize your dream of becoming a homeowner. You can simply apply for an online home loan from the comfort of your home. There is no need to visit multiple branch offices to zero in on a home loan. You can do apply for it online at your convenience.
Since there is no physical contact needed for an online home loan application, you can also minimize the risk of contracting Coronavirus.
- Video-Based KYC
Applicant’s KYC is a crucial step followed before accepting a home loan application. It involves presenting various documents like your identity proof, address proof, bank statements, and income tax returns to the lender. As a part of the traditional home loan application, it involves meeting a bank’s executive in person to get the KYC done.
The online home loan process is different than the traditional one. In most cases, it involves video-based or online KYC to process your loan application further. While you are working from home these days, you can easily get the required KYC done online.
- Lower Interest Rates
Amidst the pandemic, several measures have been adopted by the Reserve Bank of India, including the reduction in repo rate. Although they were taken to strengthen the economy, they have led to a reduction in home loan interest rates.
Since home loan repayment involves paying a significant interest amount based on these rates, you can save money borrowing an online home loan these days. The exact details of the home loan interest rate may vary from one bank to another. Hence, it is crucial that you check these details before applying for a home loan. You can get an estimate of EMI payable for a specific loan amount using an online home loan calculator.
- Loans Up to 90% of the Property Value
An individual’s eligibility for a specific loan amount to buy a home depends on several factors, one of which is the value of home to be bought. For instance, you cannot ask for a home loan of Rs. 25 Lakhs to buy a property that has a net worth of Rs. 20 Lakhs.
Many banks are now offering online home loans for up to 90% of the property value. The final disbursal amount depends on your income, age, and creditworthiness. Getting a maximum proportion of home buying cost covered under the loan means you can keep your savings intact for various other financial needs.
You can avail many perks by applying for an online home loan. Many renowned banks like Axis Bank offer home loans at attractive interest rates. Move a step closer to buying your dream home by applying for a home loan today!