Ways to choose the right Home Loan for your needs

Finding the right Home Loan that fits your requirements can be a daunting task, given the number of options that you have in today's times. Undoubtedly, you would want to pick a lender which is trustworthy, reliable, offers competitive rates and scores high in customer service.

While the choices may seem confusing, finding the right one for you may not be difficult if you pay attention to some important aspects.

Tips to choose the right Home Loan lender

Here are the factors you should consider before zeroing in on a Home Loan lender.

Creditworthiness

First things first, the credibility of the lender is of utmost importance. Since Home Loans are long-term associations, it becomes crucial to know if your lender is trustworthy.

The number of years of experience, reputation in the market, existing customer experience through reviews, etc., can help you decide the lender's standing in the industry.

Interest Rate and Charges

Whether you are looking for a Home Loan for the first time or for refinancing (balance transfer facility), comparing interest rates offered by different lenders can help you in long-term savings.

Choosing between the type of interest rates (floating or fixed) is solely on the homebuyer, and in most cases floating interest rate is preferred in a falling rate regime.

However, knowing whether the interest rates offered by the lender are fixed or floating and comparing it with other players in the market makes a difference.

Depending on the interest rates, your Home Loan EMIs may change.

Eligibility Criteria

Whether you are eligible to get a loan and up to what amount from a particular lender depends mainly on the Home Loan eligibility criteria of that lender.

Although the criteria may vary among lenders, they mostly revolve around your age, income, credit score, and existing liabilities.

Many lenders, including banks and NBFCs, have Home Loan eligibility calculators enabling you to calculate online the quantum of loan eligibility.

Also Read: Strategies to lower Home Loan EMI burden

Process

Getting a Home Loan can be a tedious process with lots of documentation and long procedures. The formalities may be tiresome, and some lenders may even take months to sanction the loan.

Choose a lender that has a seamless process and a shorter turnaround time.

A pro tip to speed up your application process is to be aware that Home Loan document requirements may vary from one individual to another. Hence, note all the documents required to avoid any delay in the process from your end.

Digital Access

Most lenders are shifting to online platforms and offering features which are convenient and time saving.

When you can apply, check your application status, pay your EMIs, check loan information and other aspects online, the complexities involved are reduced to a great extent.

Also Read: Avoid common Home Loan application mistakes

Customer Service

Lenders having multiple touchpoints are always preferred. Most have their presence on calls, websites and chats apart from physical branch locations. Although you can always walk into the branch for detailed information, equal assistance is provided through their call centres.

Prompt response and proper guidance form the core of customer service that differentiates a suitable lender from the rest.

Wrapping Up

Comparison is the key when it comes to choosing the right Home Loan lender as per your needs. With stiff competition in this segment, banks and NBFCs leave no stone unturned to offer the best rates, need-based features and excellent customer service. Ensure you compare the best players in the market before selecting the right one.

Consider opting for Axis Bank’s Home Loan products to ensure a hassle-free process in obtaining a loan. Our Home Loans come with flexible EMI options, competitive interest rates, and a range of other features that can make your home buying experience hassle-free.

Also Read: Can Home Loans be offered on the cost of the property?

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision