19 things you should consider when taking up a home loan in india 2018
19 things you should consider
when taking up a home loan in
Here is a list of main topics that attract your
You’re Finances – What is your Gross Monetary Income? How is my credit
Get to know the ways were you can avoid down payment!
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Money for Down Payment in 2018?
CREDIT HISTORY – Banks always like people with clean financial habits.
The credit score tells a lot about your financial health. You can easily check
your EMIs on time or default through your credit report, which is managed
by various bureaus.
OCCUPATION – There are some jobs that banks like. For example,
employees of several government banks, public and government employees
are very stable and they have a steady job
AGE – Another criterion to look forward to your age when giving a loan.
Since you are more economically stable for people aged between 30 and 50,
you may want to give a thought to yourself.
DISTANCE – Banks take distance into account while approving a loan the
property must belong to the nearest city and within the same manual that
means it should meet the requirement of housing and development needs.
WORK EXPERIENCE – You need to know that banks are asking for how
many years you work with your current organization. Because you are
serving more points earned by the bank i.e. Banks prefer people working in
an organization for at least three years.
INCOME SOURCE – If you are planning to buy a property worth 1 crore but
your income will not match your current requirement then banks force you to
choose the lesser one
The rate of Interest – This is the single biggest factor when a home loan is
taken. The low-interest rate, it’s fine. If the interest rate is low, pay a
monthly interest rate each month and pay more On the month’s formula.
The low-interest rate can also reduce monthly payment or EMI. Less EMI is
easy to pay.
The lower interest rate also means that you are eligible for the maximum
loan amount given to the income level.
Remember that the rate of interest is higher in fixed-rate loans than floating
REPAYMENT PERIOD – The less repayment period, the more your bank
likes. For example, many banks give the maximum number of people who
are opting for a refund period of up to five years. If the repayment period is
between 10 and 15 years it comes up to half. And it is at the lowest end of
that choice for a period of 15-20 years. So, next time, try to reduce your
debt period if approval becomes harder.
RELATIONSHIP WITH THE BANK – Banks value their old customers a lot
because they are very satisfied and loyal customers for an extinct a person
who has a bank account of 10 years in the same bank will be preferred more
and the chances of getting a loan are more likely. ” HDFC Home Loan
Interest rates 2018”
PURPOSE OF THE LOAN – Before you apply for a loan it is needed to
understand the risk factor associated with the loan suppose a loan for under
construction is risky because there will be a delay from builder etc. To
understand risk factor associated with the loan.
Down Payment – Each bank asks for a certain amount as a down payment.
(By this banks come to conclusion that the person who has applied he does
not rely on the loan completely he has some savings).This down payment is
less than 0% in special cases – for example if a builder tied with a bank for
his entire project. But in most cases, the down payment is between 10-
15%.This means you need to give this amount in advance. Due to a large
number of home loans, 15% are also struggling.
Calculation of interest daily, monthly, quarterly and yearly – It again
affects how much you pay for the loan interest. This factor is not the most
important these days, as most banks count interest in daily or monthly
intervals. But before you finalize your home loan provider, confirm this.
Read more about- RBI guidelines for Home Loan
balance transfer charges
Is there any loan processing fee – Banks charge “processing fees” to
process your home loan application. This is a percentage of the home loan
amount and is usually 0.5%. This will be charged regardless of your home
loan approval or denial. So go for the bank that has a low processing fee.
Time takes to approve the loan – As your bank regarding the time that
takes it to disburse the loan because nowadays most of the PSU banks takes
Prepayment Penalty – Get it conformed with bank whether there is any
prepayment penalty. Suppose you may get an unexpected bonus or a chit
that got matured so you have a lump sum amount so get that clarified
Foreclosure Penalty – Same way conform with bank authority whether
they charge any money while we pre-close the loan before the tenure. If yes,
then ask them the percentage of the amount they need to pay.
The requirement of a Guarantor – Some banks, especially PSU banks,
want to provide a guarantee for home loans. Everyone will be in a position to
find someone with a good financial position to back up their home loan. So,
this is a very important consideration.
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