Home improvement

How to get a home loan when you’re single?

Home loans can be availed by an individual based on the income gained. Salary is the most important factor for an individual to get the home loans approved. Also, age is another factor based on which the bank decides the approval of loans. Banks charge interest rates of 6.50% per annum onwards. The interest rates may go higher depending upon the lender. The banks also charge processing fees to an individual of around 1% of the loan amount or Rs.10,000 whichever is lower. Being a single person and managing all the expenses is a difficult task, thus in the case of a single person or un-married the individual should have proper financial planning for the purchase of the house by availing of home loans. Many individuals avail loans single-handedly as they are the only person who is working in the family. Either the male person working or his wife is a housewife or else the ones who are single women either un-marries or divorcee. Thus managing expenses for buying a house for individuals is a very major responsibility.

When an individual takes loans by themselves then in that case the bank assumes the criteria based on the single person’s income and analyses the repaying capacity of an individual. In the case of the individual asking for an exorbitant amount for loans the bank may reject the proposal as the chances of getting the loans turning into bad debt is also high. The single women borrowers are also rising as the women are becoming financially independent and are amongst the key potential buyers. Banks provide a rebate of 0.50% on the interest rates to encourage the women to avail loans in their names. Banks are keen to provide loans to the borrowers who are amongst the honest credit payers. Also, the borrower has to provide the statement of ITR returns being filed for the past three years to avail loans from any of the banks or an NBFC. The loans can be availed for a higher tenure in case of the home loans application provided at an early age. The bank needs a credit score of a minimum of 700 points to approve the loans. In case of the score being lower than the credit points, the lenders may either charge higher interest rates or else may reject the loans proposal.

Things to follow if you are the single person to avail home loans:

  • Assess your financial profile:

The individual should assess the repayment capacity of the loans and the affordability of the property. Also, the repayment value for the loans should be checked as the value is much higher and the interest amount is calculated on a cumulative basis.

  • Check your eligibility on your own:

The borrower can check for the eligibility of the home loans according to their income and age the tenure can be found out and the loan sanctioned eligibility and repayment value of the loans. Home loan eligibility helps an individual plan the purchase of the house and accordingly may plan to buy the house.

  • Check your credit score:

The borrower should check their credit score on the CIBIL website or any third-party finance website by entering the basic details of the pan card and Aadhar card to check. If the score is found to be low then in that case the borrower should try to improve the credit score. If it’s above 700 points then in that case there is no hurdle in the approval of loans.

  • Save for down-payment:

The borrower should have sufficient savings in the bank account for the approval of loans. Bank considers the people who maintain sufficient bank balance in their bank accounts as stable borrowers. Also, it is always better to pay the maximum down payment for the purchase of the homes to avoid the liability of repayment of home loans and also to reduce the interest burden.

  • Check for the government schemes:

Buying a house by an individual is a major burden thus availing the government schemes is a better option. Buying a house in the government’s low-cost housing schemes can help an individual save money on the purchase of the house. Also, the schemes are available for the loans like the PMAY [Pradhan Mantri Awas Yojana] scheme which helps the individuals avail subsidy on home loans for the ones who do not have their properties. There could be also many more schemes from the state governments which an individual can take benefit of. Some state governments charge lower stamp duty rates for women home buyers.

Conclusion:

Hence we can conclude that though buying a house is a challenging task the individual home buyer should find ways accordingly to subsequently reduce the burden on home loans and buy the house. Even buying a smaller house of 1Rk or 1BHK can be sufficient for nuclear families which can be purchased by the individuals by availing home loans from the banks.

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