Page 1

Looking for a home loan in India? Keep these 5 things in mind.


• Going in for a home loan in India is always a good idea. It helps you purchase the property you want even if you don’t have all the necessary funds at hand.

• However, before you take a dive into debt, there are certain things you must keep and this article will highlight 5 of these things to ensure you enjoy a smooth housing loan journey.


1. Eligibility and affordability. Before you go in for a home loan in India, remember to pay close attention to your eligibility and affordability. Knowing your eligibility will ensure you loan application is approved without any hassles. However, applying blindly could not only cause your application to be rejected but it could also see you lose out on your processing fees. Today most lenders charge a processing fee between 1 and 2 percent of the loan amount. This means, if you apply for a loan of Rs. 50 lakh, applying for a loan amount above your eligibility could result in a loss of Rs. 50,000!


• Affordability on other hand refers to your ability to cover the monthly installments. • Considering that you will have to cover this cost for the next 15 years or so, it’s important give it a good amount of thought. As a thumb rule, you shouldn’t have an EMI that’s more than 4045 percent of your monthly income. Both affordability and eligibility can easily be checked using calculators found on lender & aggregator websites. So before applying it’s worth it to use these free and easy to use tools.


2. Credit score for a home loan in India. Your credit score is one of the most important things a lender will evaluate before approving your loan. These days, CIBIL is one of most popular credit rating companies. Lenders will require you have a CIBIL score between 700 and 750. However, the close you are to the maximum of 900, the better. If you have a poor score, you can always improve it through simple tips that are easily found over the internet. 3. Down payment. Most lenders will provide you up to 90% of the property cost as the loan amount. This will leave you to provide the rest as a down payment. It’s also wise that you provide as substantial a down payment as possible. This will ensure you borrow less and pay lower interest.


Interest type. With a home loan in India, you should also keep in mind that there are different types of interest rate and choose the suitable for your needs is very important. Typically, fixed rates are better suited for risk-averse borrowers looking for sound planning and stability. Floating on the other hand is better suited for young borrowers who don’t mind the risk in order to save money. Some lenders also provide the option of semi-fixed rates and to make a better informed decision between the three, it’s wise you consult a financial expert.


Insurance for a home loan in India. Insurance is a vital aspect to a home loan. Some lenders will force a certain plan on you, others might allow you to choose and some might not even make it mandatory. But remember you should have an insurance plan when you take a home loan and ensure the plan you take is worth the money and provides you the coverage you need. We hope this information in this article will help you with a hassle-free home loan process. Good luck and all the best!


To Read More on Home loan or Home loan in India CLICK HERE https://www.hdfc.com/home-loan-emi-calculator


Thank You

Looking for a home loan in India? Keep these 5 things in mind.  

Today most lenders charge a processing fee between 1 and 2 percent of the loan amount. This means, if you apply for a loan of Rs. 50 lakh,...

Looking for a home loan in India? Keep these 5 things in mind.  

Today most lenders charge a processing fee between 1 and 2 percent of the loan amount. This means, if you apply for a loan of Rs. 50 lakh,...

Advertisement