What are the Benefits of Applying for a Home Loan?
10 Feb 2021
What are the Benefits of Applying for a Home Loan?
Buying a property is a significant milestone in life. And in today's world, you can fulfil this milestone quite easily, thanks to a facility known as a Home Loan. Yes, a home loan empowers you to become a proud owner of a property of your choice. Apart from helping you fulfil one of your life's major goals, taking on a home loan, comes with its share of other advantages. Let us take a look at the various Home Loan benefits.
The Many Advantages of a Home Loan
Here are some ways in which taking on a Home Loan can prove beneficial
As we all know, property rates are always on an upward trajectory. As such, the actual market value of your home keeps on appreciating with time. A property that may have cost you several lakh today can be worth a few crore in the future. As such, real estate is an investment that keeps on giving, thereby increasing your net worth.
High Repayment Tenures
One of the best Home Loan benefits is that you can repay your loan in long tenures. Bank of Baroda permits you to repay your loans in tenures lasting up to 30 years or 360 monthly instalments. This way, you do not need to compromise on your monthly expenses and continue supporting your lifestyle.
No Penalties on Prepayment
Another advantage of Home Loans is that you can close or prepay your floating interest-rate Home Loan before your chosen tenure. You can pay extra instalments each year (when you come upon surplus money), and repay the loan before the scheduled term. In doing so, you do not have to worry about incurring any financial penalties. This way, you can be rid of your loan burden at any time.
No Need to Live in Rented Facilities
A Home Loan helps you buy your own property and prevents you from living in a rented facility and having to move every few months or years. It proves especially beneficial if you are living in a metro city where your monthly rent may be equal to an EMI. So you may as well apply for a Home Loan rather than pay rent.
You Get Various Tax Benefits
While speaking of the various benefits on Home Loan, we cannot ignore the tax benefits you get. For one, you can claim tax deductions of up to Rs. 1.5 lakh p.a. on the principal loan amount, under Section 80 C of the IT Act of India. The only condition to get this Home Loan benefit is that you should not sell your property for the first five years. Apart from the tax benefit on the principal amount, you also get a deduction of Rs. 2 lakh p.a. on your loan's interest component, under Section 24B. These benefits apply for you as the applicant and your contributing co-applicant.
How to Apply For Home Loan Online?
Along with the many Home Loan benefits mentioned above, there is one more that not many people know about. Today, you can apply for your Home Loan without visiting the bank. Yes, Bank of Baroda has made the Home Loan application process incredibly seamless for its customers. You can directly visit our website, browse through the different types of Home Loans we offer, and begin the loan application process online. Just fill a form mentioning your personal and income details and wait to hear from us. Remember to use the Home Loan eligibility calculator to improve your chances of getting the loan sanctioned.
Types of Car Loans
Types of Car Loans
Car Loans are for those looking to finance their car purchase at relatively attractive interest rates.
At Bank of Baroda, you can get financing of up to 90% of the on-road price of a brand new car of your choice if you opt for a Car Loan. Anyone can avail of a Bank of Baroda Car Loan, subject to their eligibility. These are available for a maximum loan tenure of 7 years, and the loan amount can be as much as Rs 1 crore. The bank gives a 0.25% concession on the interest rate to its existing home loan customers with a clean credit history. What's more, Concession of 0.50% in rate of interest on Car Loans to those applicant/s who offer minimum 50% of Loan limit as liquid collateral security e.g. Fixed Deposit of our Bank, NSC, KVP or LIC Policy.
The cars are hypothecated with Bank of Baroda until the full and final repayment of the entire loan amount.
Types of Car Loans in India
While there are generally three types of Car Loans available in India, there may be lender-specific customised options on offer. Most banks and financial institutions in the country offer new car loans, old car loans or Electric Car . Let's understand in brief these different types of car loans.
New Car Loan
As the name suggests, such loans are offered by banks to fund the purchase of new cars. You can get a car right out of the showroom without worrying about where to arrange the funds from. Banks will come to your rescue and offer loan options to choose from. You can compare interest rates and other charges being levied, along with some benefits associated with the loan product, and accordingly select your lender and loan option.
To promote Electic Vehicle Bank Bank of Baroda is offering concession in ROI.
Pre- owned Car Loan
Some banks also help you buy second-hand cars or used vehicles, although the financing available for the same would generally be lower than that available in the care of new vehicles.
Bank of Baroda offers Car Loans to purchase a new hatchback, sedan, MUV or SUV for private use. The documentation is minimal, and the interest rates and processing fee are among the best.
What is a Home Loan?
What is a Home Loan?
For those looking to own a home, banks and other financial institutions offer loans for that purpose at competitive interest rates. So if you already have that dream house in sight, the next step isn't too hard. You can use a Home Loan to buy a plot of land, a flat or an apartment, build your own home from the ground up, and even extend or renovate your existing residence.
Bank of Baroda offers loans for homes to residents and Non-Resident Indians (NRIs), let us take at the types of loans you can get:
Types of Home Loans
Home Loan Advantage
Now you can have a Home Loan sanctioned that will be linked to your savings account. How it works is you can apply for a Home Loan and reduce your interest burden by the balcne amount in your savings bank account . What's more is, no interest will be will paid on the linked Savings Bank account.
Home Improvement Loan
A loan isn't just to buy a new home; you can also get a loan to renovate or have repairs done in your current residence. Moreover, you can use a Home Improvement Loan from Bank of Baroda to buy new furniture and fittings. That makeover you wanted for your home is now just a few steps away. Tax benefits are also availbale.
Home Loan Takeover
If you have a Home Loan from any other bank, housing finance companies (HFCs), non-banking financial companies (NBFCs) and financial institutions (FIs), you can switch it to the Bank of Baroda for better floating interest rates. We offer easy takeover for loans where more than 12 EMI`s are already repaid and certain under conditions are fulfilled.
Pre-approved Home Loan
Want to have more flexibility to negotiate with builders and sellers? A Pre-approved Home Loan can help you do just that, as it gives you a loan sanction as it provides in-principal approval for the loan before you have finalised the property you wish to purchase.
Home Suvidha Personal Loan
To help you finance those home purchase-related costs, like insurance, registration, stamp duty or goods and services tax and club membership .Bank of Baroda offers Baroda Home Suvidha Personal Loan.
Pradhan Mantri Awas Yojana (PMAY)
Government of India's PMAY scheme aims to ensure housing for all in urban areas by 2022, a mission that is to be realised across the country. Bank of Baroda offers Credit-Linked Subsidy Scheme (CLSS) under the government's PMAY mission, wherein interest subsidies on housing loans are made available to certain beneficiaries. 1st time home ownership is promoted through this initiative of the government.
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
Targeting mainly the EWS and LIG segments, the scheme aims to help address the said categories' home finance needs.
Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)
The government has set up a CRGFS Trust, which provides credit risk guarantees to lending institutions, against housing loans sanctioned to customers belonging to the EWS and LIG segments, without the need for any collateral.
Questions to Ask When Applying for a Home Loan
Here are some of the common questions applicants ask when they apply for a Home Loan:
What is the maximum duration/period for which I can get the loan?
Bank of Baroda grants a Home Loan for a maximum tenure of 30 years. The loan term will under no circumstances exceed the age of retirement or completion of 65 years of age, whichever is earlier. The Home Loan tenure also varies based on the loan amount and the income of the borrower.
Can I prepay the loan ahead of schedule?
Yes, you have the option to prepay the loan either in part or in full.
Who is eligible to avail of a Home Loan from the Bank of Baroda?
All resident and non-resident Indians (NRIs) between the age of 21 and 60 are eligible for a Home Loan from the Bank of Baroda.
How much does the Bank of Baroda lend?
The Home Loan amount is determined based on your repayment capacity. Other factors like age, income, dependents, assets, liabilities, occupation stability, continuity of income, savings, etc., also play an essential role
What is the mode of repayment?
You can repay your loan amount via Equated Monthly Installments (EMIs).
What is the security for the loan
The security for the loan is the equitable mortgage of the property to be financed.
A Home Loan helps you buy a house where raising funds appear challenging. Moreover, at Bank of Baroda, the application process is online and convenient where you can upload documents from the place of your convenience. You also can view all the types of Home Loans on the bank's website.