Important things to look out for before applying for a loan!

Important things to look out for before applying for a loan!
Before applying for a home loan or shop loan you need to choose a participating lender and go through their loan application process. You can conduct a proper research and compare online as to which bank or financial institution is providing you the maximum loan at a feasible rate of interest. Each lender has its own eligibility criteria and also requires certain documentation as a necessity for the loan amount to be sanctioned. Nowadays applying for loans have become easy as you can apply for loans online and some institutions also offer loan in 24 hours.
Here are some key points that need to be considered before applying for a loan:
Eligibility:
You need to check what amount you are eligible for based on your credit score, monthly income, and existing loan obligations. You can also include your offspring or spouse, who are earning independently, as co-applicants if your earnings prove insufficient for loan approval.
Documentation:
Required documentation can vary for different individuals depending on salaried or self-employed individuals. It could either be salary slips, bank account statements, IT returns or all of the above mentioned. There are lenders who also provide home loan without income proof .
EMI affordability:
It is of utmost importance to check the monthly EMI because missing an EMI can affect your credit score drastically. Most of the lenders have a calculator on their respective websites such as HFFC has HFFC EMI Calculator that enables you to understand the monthly EMI’s that you need pay. This helps you to plan your monthly expenses accordingly.
Processing fees & other charges:
Processing fee can range anywhere between 0.5% – 1%, depending on the amount that has been sanctioned to you. Other charges include an administrative fee, switching fee, and late payment fee.