Home loans, as you must be aware, are obligations that run into lakhs for a considerable period. That is why it is best to be careful when applying for a home loan.
PNB Housing Finance is a leading and trusted name in the home loan arena; they offer hassle-free loans at competitive rates. Below we discuss things you need to consider while taking a PNB Home Loan.
Things to Consider While Taking a PNB Home Loan –
Credit Health
Banks or Non-Banking Finance Companies (NBFCs) assess various aspects when you apply for a loan, one of which is your credit health. Financial institutions access your credit report, which details your repayment history and other aspects of your loans.
The report also contains your credit score, which is a three-digit number that ranges between 300 to 900; the higher the score, the better it is.
Most lenders have a minimum score which they accept for sanctioning a loan. You can get a PNB Home Loan if your score is above 611.
Before applying for a loan, focus on your credit health. Repay your dues on time, only apply for a few loans simultaneously and use your credit card only to upto 30% of its sanctioned limit to have a healthy score.
Loan Term
Your monthly loan instalments depend on the principal, interest rate and loan term. Lenders have different policies about loan tenures; as per PNB Housing finance customer reviews, they offer one of the most extended loan terms to the applicant.
You can apply for a loan for up to 30 years (the applicant’s age should be below 70 when the term ends.)
Choose the loan term carefully, keeping in mind the monthly instalment you can pay comfortably. Use a Home loan EMI calculator to estimate your EMIs for different loan terms; select the loan term which allows you to pay EMIs without stretching your budget.
However, remember that a longer tenure means lower EMIs, but higher interest costs over the loan duration.
Additional Charges
When you apply for a home loan, you have to pay a processing fee; this may be a fixed sum or a percentage of the loan amount. PNB Housing charges a minimal processing fee of 1%.
Downpayment
Financial institutions sanction a proportion of the property value as a loan; this is known as the loan-to-value ratio. This is the maximum loan amount you can get, and it varies from lender to lender and can range from 75% to 90% of the property value.
The remaining part of the amount is the downpayment, which you have to pay upfront. The downpayment amount decides the loan amount and, ultimately, your EMIs. A higher downpayment means a smaller loan and smaller EMIs. Try to make a bigger downpayment to reduce your loan amount.
Conclusion
Take a home loan after planning and researching. PNB Housing finance customer reviews suggest that the financial institution’s representatives are there to help at every step. The application process is simple and the disbursal is quick.
