Home loan is the most popular loan type in India. Anyone with a stable income and a dream can apply for this loan.
The real estate sector, of which the housing industry is a part, is expected to touch the milestone of INR 65,000 Crore by 2040, a sizeable jump from INR 12,000 Crore in 2019.
In the second half of 2020, more than 86,000 housing units were launched. In 2020’s third quarter, home sales volume was 61,593; a 2x jump from the 33,403 it witnessed in the previous quarter. And, the data only covers eight major cities in India.
The massive growth of the housing industry can be attributed to the ever-lowering home loan interest rates in India.
Constructing or purchasing your dream home is no more a challenge when you lay hands upon the best home loan in India. Head to the following sections to discover the reasons that make home loans the most popular loans in India.
Why is Home Loan So Popular In India – The Top Three Reasons
The ever-expanding home loan market in India can be attributed to the following key factors:
1. A Booming Real Estate Industry
While the impact of the COVID-19 pandemic was far-reaching, the real estate industry has revived from its lows. With the government promoting affordable housing through the Pradhan Mantri Awas Yojana (PMAY), people are inclining towards housing.
The government has set a target of completing 2.95 Crore houses by 2022, a reason why the home loan market is slated for steady growth.
Recent housing trends indicate that people are gradually moving to Tier-2 and Tier-3 cities for constructing their peaceful abode.
Finding the best home loan in India is not tough when you are planning to relocate to Tier-2 and Tier-3 cities.
Lenders like PNB Housing Finance have a presence in all states, and you can get some incredible deals from such lenders.
Hence, the availability of best-in-class lenders and low Home Loan interest rates are scaling up the popularity of home loans in India.
2. Simple Application Process and Quick Approval
The application and approval process of the best home loan in India is seamless. In India, reputed lenders offer two methods of loan application – online and offline.
In the offline mode, you have to visit the lender’s branch office, collect the application form, attach your documents, and submit it. The lender will arrange a house inspection on a date as per your convenience.
Once the inspection is over, you can expect the funds in your account within twenty-four hours. The offline method is more time-consuming than the online mode.
Online mode allows you to conveniently open the lender’s website and key in your personal details.
The lender usually sends an OTP to your registered mobile number or email ID. You need to enter the OTP in the box provided. After logging in, you can apply for the loan online by uploading your documents.
The lender contacts you for the home inspection round, and on successful inspection, they transfer the amount to your bank account.
The seamless application and approval process, coupled with ultra-low home loan interest rates, is creating the right buzz for the loan market in India.
3. Minimal Documentation and Relaxed Eligibility
The best home loan in India is no-frills, meaning you will never have to worry about the documentation and eligibility. Indian lenders have kept the requirements so simple that every citizen of the country can apply for it.
When it comes to documentation, you need to submit no more than eight to nine documents to avail of the best home loan in India.
The documents include age, address, and identity proof, income proof, Income Tax statement, business profile (for self-employed professionals), and property papers.
Thus, anyone with a stable income source and possessing all these documents can apply for a home loan.
Regarding eligibility, the borrower needs to be above 21 and below 60 to apply for a loan. However, the lowest loan interest rates in India are usually reserved for borrowers with a high credit score and decent monthly income.
Hence, minimal documentation and relaxed eligibility criteria are the two most prominent reasons for India’s booming home loan market.
The home loan market in India is slated to take a quantum leap in 2022 and beyond. With the government’s renewed interest in boosting consumption and lower than lowest home loan interest rates in India. Also we can only expect a prolific growth of the housing industry.