How to apply online for Loan DSA Agent ?

Home loan agents connect individuals seeking a fund to a direct provider. They explain several financial products offered by banks and other lending institutes. It is their responsibility to take care of the documentation process, carry out fundamental checks, and ensure that the documents you have submitted are following the guidelines of the bank.

A Direct Selling Agent (DSA) works as referral personnel for a lending platform. It finds potential customers for financial institutes, which are forwarded to the bank for further process. The loan agent gets a payout or commission on each successful lead. It is a brilliant way of earning some extra income with the primary job.

Online registration process for DSA agent:

An individual should adhere to a standard set of procedures to become a DSA agent. The first step is to register with a financial institute. Each bank and the financial company has its processes to follow while registering for a DSA channel partner. However, some steps are common for all lending platforms are as below:

1. Go to the official website of the particular bank or NBFC and submit the application form

2. Make the necessary payment for the application form

3. Submit the required documents for identity and address proof

4. A legal team will verify the submitted documents

5. The team will check your credit history and CIBIL score

6. You will become a DSA agent with the particular bank or NBFC if there are no issues noted in the background check

7. You will get a mail with all documents attached

8. Fill in all the requested details, sign the agreement, and submit it

9. You will get a DSA license or a DSA code

10. Once you receive the DSA code, you can officially begin your work as a DSA agent

The online registration process for home loan agents is quite simple and hassle-free. You need to get all your documents right. Like the registration process, each bank or NBFC asks for a different set of paperwork. However, the basic documents required are:

1. Aadhaar Card

2. PAN Card

3. Bank statement for the last six months

4. IT returns for business firms

5. Educational qualification

6. GSTIN details (only if applicable)

7. Details of firm registration

8. Two recent passport size photographs

What is the eligibility criterion to become a bank DSA?

One does not need any specific educational qualification to become a DSA loan agent with a bank or a lending platform. Students, housewives, business persons, and working professionals can register to become loan agents for a bank by following the correct procedure. Most loan distribution platforms have a free registration process. You can source clients from multiple locations for different financial products when you work with a trusted platform.

After registration and receiving the DSA referral code, the concerned bank will provide you with the necessary training. You will get a breakdown of loan products, their needs, and other details. They will teach you how to get successful leads and assist the customers. To be a successful DSA loan agent, the only requirement is excellent communication skills. Convince a loan seeker why a particular loan product is beneficial to them. You will soon learn how to convert leads into business and get more commission.

Another thing you will learn is using special integrated tools as a DSA loan agent. These tools will help in lead capturing, nurturing, and real-time tracking. When you know using these tools, you will have complete control over the leads. Hence, training is a crucial part of the process.

Joining the DSA channel partner program of any bank or NBFC is an easy process. Follow the steps mentioned above, get your referral code, and begin working as a DSA loan agent.

How to become a certified Loan Agency Partner ?

A loan agent is someone who assists a person in securing a loan from various banks and lenders. It is quite evident that the loan agents have an immense influence on the proper and fundamental functioning of the banks. And Andromeda is one of the greatest and the most widespread distributors of finances, loans, mortgages and other financial assistance or instruments. So, it is very beneficial to become a DSA Agent at any reputed loan agency. But, how can you become the loan agent at Andromeda? Well, we have discussed the following to answer this question and let you know about becoming a loan agent at Andromeda.

What is the eligibility criterion for becoming a DSA?

Let us begin the discussion with the eligibility criteria you need to complete the Loan Dsa Partner Registration. The following are the different requirements for eligibility for this position at a reputed organization:

● No specific education qualification is necessary for becoming a loan agent

● Anyone from any professional background who can manage the work in their spare time is eligible for this post

● Anyone dedicated enough to be a part of the system and carry out all the workload most proficient and effectively in time is eligible for the post.

What is the process to become a loan agent?

The Loan Dsa Partner Registration process at any given organization is simple and easy to follow. So, let us now know about the different aspects of the process of becoming a loan agent.

The following are the points that you must know about:

● You will have to fill out a form that is readily available on the official website of the company. If you do not get the form online at the official website, you can visit the branch office. Fill out the form. Submit it to the bank or a financial firm.

● The respective department will contact you and ask you to submit specific documents, which you will have to follow

● After verifying your documents are complete, a legal team will look through your credit history

● After the above process is complete, the respective bank will call you for an interview

● After that, you may sign officially with the bank/ NBFC to make everything official

● You will receive a certificate or DSA code as a loan agent

● You can begin submission of the application following the format suggested by the bank that you will be dealing with

What is your responsibility as a loan agent?

When registering at a company as an agent, it is essential that you are well aware of the different responsibilities you are to carry out. Knowing about your role as an agent makes you more focused and streamlined in your work. So, let us now look into the different roles and responsibilities of a loan agent.

The fundamental and prime role of the agents is to bring more and more leads to the bank. Their work is to sell home loans, mutual funds, personal loans, business loans, or other loans and ensure that the bank approves the customers’ loans. Another essential responsibility of the agents is to check and ensure the documents that the people require for securing loans and other financial instruments from the bank. They also have to assist the people trying to secure a loan from the bank until their process of getting the loan approved completes.

When you become a loan agent at a reputed DSA organization, you enjoy several benefits. Every DSA Agent enjoys flexible work hours, great commission, and freedom of developing contacts, zero investments and many more benefits. So, now that you’re well aware of the process, eligibility and role of a loan agent, apply for the post as soon as possible.

Enjoy working freely at one of the country’s best and the most significant financial distributors. Earn great commissions and work flexible hours by following the simplest steps for registration as a loan agent at Andromeda.

How to register for a DSA Loan Agent?

DSA loan agent, also known as a Direct Selling Agent, is associated with a bank or a non-banking financial company (NBFC). DSA agents acquire potential loan borrowers for a bank or NBFC. The DSA mortgage agent will be responsible for completing the applicant’s loan procedure and the administrative formalities. They are not full-time employees. Instead, they represent the bank or NBFC. The agent will receive a commission over each successful loan application.

Have you ever wondered why agents try to get you to apply for a loan when you can do so by visiting a lending institute? It is not a scam, and the agents are genuine. Let us learn more about the registration process of a DSA agent.

What is the registration process for a DSA loan agent?

DSA agents look for loan borrowers for a lending institute by searching the financial market. They then transfer these leads to the concerned bank or NBFC and take the process forward. However, an agent must first register before starting the work. A person cannot begin offering loans to a bank just like that.

Most banks and NBFCs have their registration process. Some of the common steps are as below:

  • Visit the bank, NBFC, or any other lending institute and submit your loan DSA partner application form to them

  • Make the required payment

  • The bank, NBFC, or lending platform will contact you after successfully making the payment. They will ask you to furnish certain documents

  • A legal team of the financial institutions will begin a due diligence process. After the submission of documents, they will get verified. They will also check your credit history and CIBIL score

  • If there are no issues and you pass the background check, you will receive a DSA registration agreement with the correct stamp duty

  • You have to fill in the necessary details, sign the agreement, and submit it to the authorities

  • You will get the DSA code

  • Start uploading the loan documents once you receive the code

Different lending platforms will ask you to submit varying documents. However, you will have to provide the following documents for loan DSA partner registration.

  • Two recent passport size photographs

  • ID proofs like Aadhaar cards, voters ID, or passport

  • Individual address proof like Aadhaar card, passport, voters ID, or any utility bill of the past six months

  • Institution address proof like a business registration form or any utility bill of the past six months

  • Bank statements for the last three months from the DSA agent application date

  • All educational qualification certificates

  • Recent form 16 of Income Tax returns from a certified CA

  • Firm’s registration details if applying as an institute

What are the advantages of being a DSA agent?

Being a DSA agent, you can avail benefits like:

  • An additional source of income. Every lead will earn you a different amount of money

  • Get the advantage of running your business at little risk and with minimum cost

  • No requirement for higher education

  • Flexible working hours

  • The bank, NBFC, or the lending platform will provide you with the necessary training

Customers will get the following advantage by opting to apply for a loan through a DSA loan agent:

  • They will quickly and easily address any concerns you have regarding the loan

  • They will carry out the entire application procedure and formalities of the loan

  • You will get many options of loan products to choose from

  • Always available in case you need any after-sales service

After you get the DSA code from a bank or NBFC, you become their DSA partner. Upload loan documents using the code and get a commission on each loan, getting approved through your referral code. To smoothen your DSA agent application procedure, you can apply for the same on multiple finance portals.

How can I become a housing Loan Agent in India?

If you want to be a personal loan agent, you have chosen one of the outstanding careers. A loan agent is responsible for assisting people in securing a fund whenever in demand. It means a loan agent helps people connect with lenders or lending institutions, takes care of all the fundamental processes, and thus, manages several necessary aspects of money lending. In addition, loan agents also gather all the required documents and verify them before submitting them to the lender to ensure authenticity.

You might not know that these loan agents are also called DSA or Direct Selling Agents. Their primary objective is to link people with urgent capital requirements with lenders and guide them through the entire process. They are also responsible for performing the basic verification of the borrower to ensure that the loan application follows all the rules. So, like a personal loan agent, you should first connect your customer to a reputable lender, check the needed documents, and help your client through the entire loan application process. In this way, they can secure funding for their needs with ease.

So, you have learned about the primary role of a loan agent. But do you know how you can become such an agent? If not, in that case, you are in the exact place as we have penned down below a detailed discussion that will help you to become a loan agent.

The eligibility criterion to become a loan agent or DSA

Many people think that to become a loan agent, they have to be good at academics. But the fact is, there is no academic qualification required to become a DSA or loan agent. Whether you are a business person or a working professional, you can become a loan agent to convert your spare time into a productive one without difficulty. But proper licensing is required to become a DSA.

Before you become a loan agent, you must meet federal guidelines. For this, you will need Mortgage Loan Originator or MLO licenses and register yourself with the National Mortgage Licensing Service or NMLS. Not only this, but to get the license, you will also need to pass an exam. After that, you will get your license.

Apart from this, you have to meet the below criterion –

You must be 18 years old and a citizen of India

You have to be well-versed in the subject

You should have a good credit history and a high CIBIL score

The procedure for registering as a DSA

Now, with the assistance of technology, you can easily apply for DSA partner registration online by following the below steps –

Open the website of a bank or lender’s website

Pay the registration fee

After paying, apply, and you will see that the bank or the lender you choose will contact you to verify the documents for the DSA partner registration

After that, their official will start the upcoming process and review your credit history and credit score

Then, they will give you the DSA agreement, and other essential information

After that, you need to sign and submit the agreement

After submitting, you will become a licensed loan agent

Documents required for becoming a loan agent

Before you apply for a loan agent or DSA registration, you should gather the below documents:

2-3 passport size recent photographs

Aadhar card, Passport, PAN Card, or Voters ID

Any utility bill for the past six months for address proof

Bank statement for the previous three months

GSTIN details, if you have

Form 16 of the income tax returns from a certified CA

Company registration information, if applied as an institution

To wrap up, these are all the details related to becoming a DSA partner or loan agent. So, if you want to become such an agent, consider the above procedures and criteria in mind and apply for the post.

How to become a loan agent in India?

The job of a loan agent in India is to assist the customers in acquiring a loan whenever they need one. They help you communicate with the lender, tackle the initial processes, and check the essential components of a money loan. A loan agent in India also gathers and verifies the required documents to ensure their legitimacy.

DSA, also known as Direct Selling Agents, is the other name given to these loan agents. The principal purpose of these people is to link the customers with the loan lenders whenever required and help them through the entire process. They also perform mandatory checks for the customers before they apply for the loan and that the customers follow all the rules.

Eligibility norm:

Several criteria must be followed before becoming a DSA partner in India. They are listed below:

  • People do not require any degree in finance or banking to work as a DSA partner in India

  • Anyone, either salaried or non-salaried, can apply for the job of a loan agent

  • You must possess a basic knowledge about the subject

  • The person must be above 18 years of age

  • You must have a citizenship of India

  • You must have a high CIBIL score and a positive credit history

What is the role of a DSA loan agent in India?

Several Fin-tech firms and banks hire direct selling agents for loans who work at their speed for multiple hours. Bank loan agents are people with complete control over their working time. However, their primary job is to make successful contacts and deliver loan leads to the financial firms. A loan agent in India generally sells mutual funds, home loans, personal loans, business loans, and other required loans as a component of their overall profile.

The primary and one of the most significant tasks of all the DSAs is to collect the required documents from the customers and check if they are correct or not. While applying for the loan, they must follow accurate procedures. The loan agents are also in charge of assisting the local banks and finance firms until the loan process is completed. It speeds up the whole system and saves a lot of time on behalf of the bank.

Opportunity

Without any prior experience in this sector, you can become a successful lending agent. You can work on your own time and working hours based on your choice. All you have to do is help the customers apply for a loan, from filing the initial documents to completing other required documentation. If you are not confident about working for yourself, you can also work for any financial services firm, loan mortgage company or in the banking sector. Your job is to assist the clients in locating funds as a DSA loan agent.

Moreover, you will not require any type of license if you choose to work as a DSA. Although, some companies in India require the loan agent to be a finance professional by education. These are the not mandatory becoming a direct selling agent but are considered more effective over others. Your job role will be way different from that of a salesperson.

Advantages of becoming a loan agent in India

There are multiple advantages to becoming a DSA agent in India:

  • A person doesn’t need to work previously as a DSA loan representative or hold any college diploma degree. They might have an educational background

  • The profession is less demanding. Therefore, you can work as a loan agent whenever you want

  • Students enrolled in colleges can also work as DSA loan agents

  • Each loan sanctioned against your referral code will help you earn a commission. The amount of commission will also increase with the increase in the loan amount.

Final words

To summarize, both banks, financial sectors and even the customers benefit from a DSA partner in India. You must have the essential knowledge about finance and your skill of persuading people with quality efficiency and interpersonal skills. There is not much requirement for any specialized degree to become a loan agent in India, and every person from any field can apply for the job. The agents can also work on their suitable time hours. However, the loan agents greatly benefit the customers in filling up the documents and applying for the required loan.

What to look for in a personal loan offer before applying?

We all must get to know the key factors regarding a personal loan before applying for one. It might help in getting your Tata Capital personal loan approved easily and that too with lower rate of interest. Here in this article we have covered the essential factors or the points that must be looked at before applying for a personal loan. Even while applying for a credit card, you must check the interest rates applicable, you recent credit score and other vital points. By examining these criteria one can ensure that they get the best out of the loan, and keep them informed instead of making silly mistakes like choosing the wrong lender or choosing an amount you do not require.

Maintain a decent credit history

Your CIBIL score judges whether you are eligible for the loan depending on your past credit payments. The credit score for a customer account varies from 300 to 900, and a decent score above 750 is considered ideal for all the customers. Due to poor debt management issues, a lower credit score might let go of your bank loan.

Another way to keep your CIBIL score high is by lowering the use of your cards and using an old credit card with excellent debt management. It is also essential to ensure that you do not exceed 30% of your credit score utilization.

Assessment of entire costing

While borrowing an personal loan, always make sure that you have all the information regarding various costs associated with them including late payment, processing fees, and prepayment fees. Before running after the loan offer, check the different prices a lender demands to get an overall expenditure. It will also help you to manage your finances and allow you to decide whether you can afford the loan or not.

Comparing various interest rates in the market

Comparing various interest rates offered by the lenders allows you to stick to the lowest interest rate. You can quickly compare the rates offered by different financial institutions like the HDFC bank, ICICI bank and others. It allows you to negotiate for a personal loan at the lowest rate available in the market and the kind of interest suitable for you. It will make your loan repayment more accessible and more manageable.

Evaluating the ability to repay your loan

You must think about how to repay it before applying for a loan offer. You can perform this by rerouting the return on your investments towards your EMIs. You must also remember that you have enough monthly income to repay the IDFC personal loan within time. There are several applications like a personal loan EMI calculator where you can calculate your EMIs before applying for the loan offer.

You must also consider debt repayment and financial obligations before borrowing a loan from any lender to prevent future hassles.

Consider your requirements for choosing the exact loan amount

Make a list of all the financial requirements and choose which of these requirements you will satisfy with your loan. Some purposes for applying for a loan offer are financing a wedding, purchasing a vehicle, planning a holiday or addressing a medical emergency. Based on the expenses and the prices of the things associated with you, it would be better to borrow the loan.

Avoid falling for tricky plans and offers

Several lenders roaming around in the market offer tricky plans and artificially low-interest rates. When you check the original documents, you see that this loan offers cost you more than your expectations. Sometimes, these loan offers are also based on the floating market interest rates, making the interest rates appear low initially but gradually increase over time.

These are the things that you must look into before applying for a personal loan offer. You might get scammed by a lender or any other third party person. In order to avoid such mishappening, you can visit Andromeda and apply for the same. We ensure that you tick all the points before you apply for a loan so that you do not face any further hassle.

What is the right age to take out a home loan?

In today’s scenario, where everything is online and there is no dearth of information for anyone who wants to access it. Most of us are primarily aware of what a home loan is and what purpose does it serve? Well, in the most straightforward way, it is the sum of money advanced to an individual from a bank as a borrowing sum in order to use it for building or buying a home, a flat, apartment or the likes of it. As per the normal procedure, home loan interest rate is applied to the amount of money borrowed from the lender, which may differ from one bank to another. And the final sum, after including the amount of interest applicable, is the final amount that a borrower has to repay to the bank within a stipulated period.

As we all have heard, the saying that everything has a proper timing, and so does applying for a home loan. Yes, there is an optimum age for taking a home loan, and it is essential to know about it, for it makes it easier for the borrowers to take the loan and return the sum in time.

So, in the following discussion, we will discuss the optimum age for taking home loans, the reasons for it being the optimum age, and why the other age groups are not suitable for taking home loans. So, with no more delay, let us begin our discussion.

Which is the optimum age for taking a home loan?

The best age group or the age range ideal for taking a home loan is between the 20s and 30s. More precisely, it is between the 20s and the early 30s. Between the mentioned years of age, one is young, resourceful and generally can gather ideal income for paying back the loan. The home loan interest rate may vary from one bank to another, to be paid back with the sum within stipulated time.

There are substantial reasons for the mid-20s to early 30s age to be the best age for taking home loans. And we will discuss the reasons now.

Why is it the ideal age for taking a home loan?

The following are why the mid-20s till the early 30s is the best age for taking home loans.

  • More time to repay your home loan

The home loan interest rate is levied on the amount of your borrowed sum, and the borrowed sum amount has to be paid back to the bank. And when you take the home loan in your mid-20s or early 30s, you have a long time ahead to pay back the loan amount. So, you can take your time and return the sum as conveniently as possible.

On the other hand, you do not get enough time to pay back the sum when you take the loan in your later years. So, you have to make haste, which results in paying a hefty sum every month to return the loan.

  • More capacity for earning

Generally, a person’s peak earning capacity is between the mid-20s and the early 30s. The availability of finances during this age is much more than in the rest of the years. Earlier than in the twenties, one does not possibly have a stable job. Even if one has a job, it is most commonly the beginning. So, the earning sum is not much.

Also, at the later ages, that is, at the retiring ages, the source of income is generally through pension, and if not pension, it is from the savings made in the bank accounts. Therefore, the source of income is neither stable nor substantial enough. Therefore, the mid-20s to early 30s is the best age for taking home loans, as the earning capacity is sufficient to pay back the loan sum.

  • A better decision for the future

When one takes a home loan between their mid-20s and early 30s, their future gets secured. As they can repay and secure their home loan at the earliest time possible. Thus, do not have to worry about applying for or paying back the home loan later.

The home loan interest rate is one of the most critical factors which one requires to pay back to the home loan lender within a specified time. So, ensure that if you plan on taking a home loan, do it in the earliest of your years to claim it and repay it in time easily! And it is best for anyone to take home loans between the age of early 20s and mid-30s.

Get instant access to funds with Bajaj Personal loan Offline

We are all aware of the time and resources required to be invested to get a loan approved from any reputed lender. It takes weeks’ worth of time to get the loan sanctioned, but it takes even longer to access the funds. So, you might be looking for a solution to that problem where you can get access to funds without much hassle. You can now get instant access to funds via the Bajaj Personal Loans, which are also available offline. So if in case you do not have an internet connection, an offline mode makes this process much more manageable.

No collateral is required to get access to the funds:

You have complete freedom to spend the money any way you see fit, whether on home improvements, debt consolidation, large-ticket purchases, or unexpected medical expenses.

During emergencies, you may find yourself low on cash while keeping track of your bills. In many cases, people resort to delving into their funds to make up for the shortages. As a result, you are in a pinch and unable to respond in an emergency. A pre-approved personal loan apply online is the best way to acquire the financial help you need quickly and easily.

Taking advantage of a pre-approved personal loan saves you time by reducing the number of steps involved in the loan process. You don’t have to sell or pledge any assets to acquire financing since it’s unsecured. In addition, with lenders like Bajaj Finance, you may receive a considerable loan amount in only a few clicks of the mouse. It’s entirely yours to spend on anything you’d want, whether it’s home renovations, debt consolidation, large-ticket purchases, or dealing with medical or other crises.

Get your loan approved with minimal paperwork

Getting a loan might get tricky with the detailed process which includes heaps of paperwork and several approvals. In the case of a pre-approved loan, a borrower is not required to fill out the complete application starting from scratch, being pre-approved for a personal loan is quick and straightforward. You may choose an individual loan package that’s right for you by entering a few basic details, such as your name, phone number, and city.

To get a pre-approved personal loan from Bajaj Finance, follow these three easy steps:

You just have to provide the contact information, such as your name, phone number, and your city

Enter the OTP so that you can verify your phone number

Make sure the amount is right for you and sign off on the payment

Obtain the money you need without any delay. This is how simple it is to get a pre-approved instant loan from Bajaj Personal loan.

Time is of the utmost importance, and in case you need money now, especially in an emergency. Bajaj Finance pre-approved loan is an excellent option in such a scenario. A few easy actions, and you’ll be able to access your funds the next day. This enables you to respond to crises more quickly.

In addition, Fintech innovations have made it feasible to obtain 100% of the money back. Depending on your circumstances, pre-approved loan offers from Bajaj Finance may need as little as no paperwork.

With a longer loan term, you can afford to repay your debt:

With Bajaj Finance, repaying this form of credit is as simple as securing the loan. Payment is made simpler by low processing charges and the interest rates are also low, with the absence of any other additional expenses. It is possible to repay your debt over a lengthy period, and longer repayment terms allow you to keep up with your other financial obligations without exceeding your monthly budget.

You can manage your loan account in both Online and Offline mode:

Using a reliable lender like Bajaj Finance online customer portal, you can keep track of your loan payments, due dates, remaining terms, and other relevant information. Manage your debt anytime and from any location with this convenient feature. If you want to access your loan offline, you can contact their customer care through the offline method.

Pre-approval for a personal loan apply online from Bajaj Finance ensures a hassle-free borrowing experience and easy fulfillment of all your financial requirements with minimum waiting and paperwork. To know more about personal loans, visit Andromeda or connect with us through social media.

SBI cuts home loan interest rates by 15 bps

The State Bank of India has been one of the most trusted and efficient banks, with its reputation spreading countrywide, including the rural parts of the country. It has been known to be the best bank for serving its customers in the best way possible. We rely on the banks for helping us during any financial situations in our lives.

And one of the most substantial financial situations, where we need the banks’ assistance is when building our home or place or the like, and it requires hefty sum of money, which is not possible for anyone to possess at present. So, here’s where the home loans help us.

Often we find the home loan interest rates are expensively high. But, the SBI home loan interest rate for 2022 has been reduced, and we will discuss this topic in the following discussion. So, without any more delay, let us begin with our discussion.

What are home loan interest rates?

First, let us start with knowing about interest rates for home loans. The loan that the bank provides us to build our home, apartment or the like is referred to as the home loan. But, like every other loan, this has to repaid to the bank with some added interest which is a percentage of the entire loan amount.

The rate of interest levied on the home loans is the home loan interest rate. This rate varies from one bank to another depending on the spread or margins as decided by the bank’s internal team. But, SBI has currently reduced its interest rates on home loans, which is beneficial for everyone who is to take loans from the bank specifically for buying a home.

The current rate of interest at SBI for home loans :

The interest rate reduction on the home loans has resulted from the festive season offering. It offers credit score linked home loans at an interest rate of 6.7% per annum. Also, the rate of interest for the home loans will remain unchanged. Irrespective of what the amount of the home loan is, as the bank is offering this rate under the RLLR scheme which states that the rate of interest is subject to change as per the guidelines given by the RBI under its Monetary Policy Committee review every quarter.

Previously, when an individual took a loan from the SBI, which amounted to more than Rs. 75 lakh, they had to pay back the loan with a rate of interest of 7.15% per annum. Now, the rate of interest has been reduced to 6.7% per annum, and that too, irrespective of the loan amount. It can be recorded as one of the lowest home loan interest rates in the bank’s history.

What other aspects were changed along with the reduction of the whole loan interest rate?

SBI did not just reduce the rate of interest for the home loans; it also dropped the expenses for processing and started offering incentives for the non-salaried borrowers. Let us know more about these changes in further detail:

i) Discarding the distinction between the salaried and the non-salaried borrowers for a home loan:

Previously, the SBI used to charge a rate of interest on the home loan from the non-salaried borrowers, which was 15 bps higher than the salaried borrowers. But, now, they have brought in changes, which have demolished such distinction.

Now, the SBI does not charge any additional interest rate which are related to one’s occupation. It will be greatly helpful and beneficial for the non-salaried borrowers, as they are most likely to face difficulties paying back the home loan with such a high-interest rate.

ii) Waving off the processing fees:

Along with enjoying the most in-expensive SBI home loan interest rate 2022, you can also enjoy saving the charges for processing at SBI. Previously, SBI used to charge for filing and processing of the loan application, referred to as the processing fee, and its festive season offer also held back from charging the processing fee.

Lastly, SBI has also reduced its base rate to 6.50% per annum and the prime lending rate, now 12.2%. These changed rates have been implemented since 15th September 2021, according to the SBI website The home loan interest rate of 6.7% has been one of the lowest home loan interest rates till now. So, there are many benefits from these festive changes that SBI has offered.

Benefits of availing of a home loan instead of a cash payment

The choice of buying a home is a significant financial decision, and taking this decision requires careful consideration based on several issues. Purchasing a house can be accomplished in two ways: either by taking out a home loan or by paying the whole amount upfront. If you are already financially secure, you may not feel the need to take out a loan and pay additional interest on the loan amount.

However, many individuals still opt for a home loan to buy their first home and pay affordable EMIs as per their income and expenses, and the same can easily be anticipated using an HDFC home loan EMI calculator. You might now be curious about why to avail a home loan over an upfront cash payment, so we have curated a list of comparison stating how one can benefit from both these options:

  • Interest rate on home loan on a down-slide

Since 2019, the RBI mandated the lenders to provide floating and fixed Interest rates on home loans to the borrower, according to their choice. The impact has been such that the rates have decreased over time, and they continue to do so at a steady pace, which is hugely beneficial if you’re planning to take out a home loan in the near future. Still, banks have been offering lower interest rates, such as the HDFC home loan interest rate is amongst the lowest, around 6.70% pa, and also offers various benefits for women and salaried professionals.

  • Benefits from taxes

Availing a home loan instead of paying with cash payment is a debate that often focuses on the tax advantages of both the prospects. As per the Income Tax Act, under section 80C it is sanctioned that an individual can file for a deduction up to Rs. 1.5 lakh per year for the principal loan repayment amount. If you or your family use the borrowed property as your primary residence, you may file for an additional deduction of Rs. 2.0 lakh from your home loan interest payment.

  • Freedom of Investment

Buying a home is a considerable commitment that requires you to put in and lock a substantial amount of money towards a specific purpose. Even if you have the cash in hand to buy a house all at once, it is advised by senior advisors to take out a home loan for additional benefits. For a decent start, you may put up a good amount as down-payment and spread the rest over an extended period in monthly EMIs. To have an idea about the various situations, you can use the HDFC home loan EMI calculator.

There are no worries about exorbitant interest rates or longer repayment terms, and you can still afford the loan. If you still have money left, you can consider diversifying your assets rather than blocking them. While diversifying your investment portfolio, you’ll also be able to maximise your earnings.

  • Availability of emergency funds

When you take out a home loan, you’ll be able to use the remaining part of your savings to cover unexpected expenses that may otherwise keep you up at night. In the event of a medical emergency, when you have no funds, you may find yourself in a predicament. You might have health insurance to overcome these situations, but it doesn’t cover every illness or condition. Such cases necessitate having emergency funds in hand at all times. With an emergency fund, you’ll have the money you need to pay your home loan EMIs in times of financial crisis. As a result, opting for a house loan rather than putting all of your funds into a single investment is better.

  • Better scope of properties

If you choose to opt for the cash payment for a property, you will have limited options due to limited availability of funds, but that is not the case when you opt for a home loan. A down payment in cash with an additional amount as availed under a home loan is preferable. You can use the additional pool of money to buy a better house with a larger carpet area, at a better location which any day offers a greater return on investment.

A home loan is considered to be one of the most affordable debts you can choose from as the rate of interest are always at minimum, revolving around the repo rate. Banks and other housing finance companies (HFCs) provide a reasonable interest rate on home loans on the basis of various factors, being among the lowest HDFC home loan interest rate offer comes with a repayment tenure of up to 30 years. Thus, in case you are looking for a home loan, you can visit Andromeda loans and get to know in detail about which one to choose from as per your requirements.