What to do to get a home loan from a bank?


Buying a home should be one of the momentous events of your life. If you are thinking of buying a home, as well as taking a home loan, you need to pay special attention to some things. Here are some tips to help you get a home loan deal:

Credit score check

When you apply for a loan, all banks will approve the loan based on your ability to pay. Based on an excellent rating, you can take advantage of a good home loan at the best interest rates. Bank lenders are willing to give loans to those who have a good credit score, because such borrowers are considered honest and worthy. They pay interest on time. So follow financial discipline. Apply for a loan according to your ability. This will save you from unnecessary debt burden. Then you need to prepare all the proofs for the required process like identity proof, address proof, income tax statement, salary statement, bank statement, employer proof and other documents.

Minimum interest rate

Different banks offer different interest rates and are even willing to negotiate. A small percentage difference can help you save a significant amount of money each month. This can be especially helpful in the long run. As a borrower, choose the bank that lends the most at the lowest interest rates.

Read all the details of the document

Lenders ask you to sign a number of documents before giving a loan. Will ask It is difficult to read all those documents carefully. But try to read everything carefully. The section written in small font should be read more carefully, there are usually terms and conditions which may be unacceptable to you.

How to get a home loan from a bank and the necessary documents

Banks and financial institutions provide loans for real estate and construction within certain criteria. For this, certain process has to be completed. NRB has set limits on loans to banks and financial institutions for the purchase and construction of land for personal use. Accordingly, they will be able to invest up to 50 percent of the market value and up to 60 percent outside the Kathmandu Valley in the valuation of mortgaged property while disbursing home loan within the Kathmandu Valley.Bargaining can be done at a premium interest rate if the basis for paying the loan is good and the expenses can also be reduced by bargaining on service charges.

Documents required for loan processing

To get a loan through a bank, the customer has to pledge his real estate. In addition, if the debtor and the personal guarantor must be a source of regular income, a one-year bank statement must also be submitted. After that the borrower has to fill up the loan application form prescribed by the bank.

The following documents are required along with the loan application:

Citizenship or passport of the person seeking loan,
Passport size photo of the debtor
Details of the source of income, including the borrower and the personal guarantor,
Four forts of the property certified mortgage to be mortgaged to get a loan from the bank,
Documents paving the way for property,
Property Payment Paper (Available at Ward Office)

If you have a home on a mortgaged property, a building permit,
Permanent house map pass and construction completion certificate
If you are an employee or a salaried person working in a legally registered organization, their salary documents,

In the case of those earning income through house rent, agreement of house rent and certificate of redemption of the house to be rented
In case of earning from foreign employment, visa proof of passport, salary document, bank statement of salary to be paid abroad and document of remittance to Nepal from abroad.

Collateral valuation

After submitting the application, the bank will evaluate the collateral you want to keep. The bank calculates the fair market value of the asset, ie house and land, on the basis of prevailing market price and weighted average of government valuation. After that, they lend only 40 to 50 percent of it. The bank is not allowed to charge extra fee to the customer while repaying the loan in advance.

Monthly installment calculation

You can easily calculate the amount to be paid in monthly installment EMI. This can be done by downloading an EMI calculator application on a smart phone. Banks also have an EMI calculator on their website. There you can calculate the monthly installment. If you have increased income in the meantime, you can reduce the loan period. NRB has an arrangement to pay the interest and installment of the remaining loan by paying the remaining amount.


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