Home Down Payment Made Easy with a Personal Loan
A down payment is usually a property’s 20% purchase price. The initial payment is critical to get a housing loan approved. This percentage of the total cost needs to be paid from your pocket. This is because lenders are limited to financing a maximum of 80% of the home value above ₹30 lakhs per the RBI guidelines. But what if you do not have sufficient money to clear the payment hassle-free?
An unsecured loan comes to your rescue! This is especially true if your property market value is higher. It may get extremely overwhelming, and one may end up exhausting their savings. But a personal loan is a better option than VA or USDA loans which require you to meet several criteria to get a zero-down mortgage. Here’s how it works.
The Perks of Opting for a Personal Loan?
An instant personal loan helps meet most financial needs. The top social lending company has done away with clunky processes. The online loan application procedure includes submitting documents online through an app available on both Google Play Store and App Store. No collateral is required, which makes it highly convenient for young adults.
A personal loan can be easily turned into a home down payment loan. You can borrow a ticket size between ₹15,000 and ₹4,00,000. The fund is sent to your bank account within a few minutes of verification on the loan app. Feel free to choose an EMI tenure between 3 months and 1.5 years and repay via NEFT/IMPS.
The interest rate is non-jumping, so that you can plan the EMI without default risks. Otherwise, you can enjoy a 5-day interest-free grace period to avoid penalties in case of delayed payment. Make sure to read the rates and charges, for instance, the processing fee, for an informed choice.
Things to Know Before Taking a Loan
Traditional banks may only accept millennials if they meet credit requirements. But a digital personal loan has been designed for financially excluded individuals. You may unlock your economic potential by getting qualified via a clever analytics-based credit scoring mechanism called SLQ. It takes monthly salaries, social media footprint, smartphone metadata and basic KYC details into account to determine your ‘willingness to pay’. All you have to do is ensure a monthly salary of ₹15,000, maintain a healthy credit score and ensure a good payment history to come across as a credible borrower.
Conclusion
The loan app further makes it easy to apply for the funds 24x7. In short, a personal loan is the fastest and the most reliable method of acquiring funds for a home down payment in India.