housingfinance-blog

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Build Your Own Dream Home with Affordable Home Loans

Every human being has three primary goals in life; food, shelter and clothing. It is said that “home is where the heart is” and true to the words, a home for you and your family is a matter most close to your heart.

Usually, the first home bought or constructed by an individual is done with the help of home loans. Before applying for one, you must know the current state of housing finance in India and then take an informed decision regarding the home loans appropriate for you.

Factors to check

You should always perform some preliminary checks before applying for a home loan. This way you get to know what is the best way to service the loan without making the repayments a monthly hassle. The salient pointers for your consideration are given below;

Organise your information

Apart from what your loan agent has to advise, you should always do a complete market research about the various home loans and the process to follow before applying for them. You should make a choice only after comparing home loan conditions from various sources.

Find the Interest Rates

The same rule applies for every loan, the lower the interest rate, the better it is. Nowadays, the interest rates have tipped towards the lower side quite a bit, which makes the dream of owning your own house a little more real.  

Identify your home loan suitability

Your capability of paying your home loans determines your eligibility for getting one. So always go for the amount that you can repay without any hassles.

You can estimate the eligibility amount by using any home loan eligibility calculator available online.

Document and proofs at the ready

Your documents and proofs must be kept filled and neatly arranged for the application to take place. The proof of identity and address is the most important one to save. Make a complete checklist and arrange your documents accordingly.

Save the Sanction letter

The loan is authorised on the basis of the applicant’s monthly income, credit history and supplied documents. You will receive a sanction letter stating the loan sum, term and interest rate. Save this letter for future references

Choose Affordable EMI

Equated monthly installment or EMI is probably the main criteria that an applicant looks for while applying for a loan. This EMI will be debited directly from your account every month, so choose an amount that is within your monthly expenditure range. A generic rule of thumb is to never let your EMI exceed 40-45% of your monthly income. Talk with the officials sanctioning your loan about a reasonably priced amount to repay.

Know about tax profits

You should know that according to the section 80C of the income tax act, you are eligible for a deduction of Rs. 1.5 lakhs from the income, if you pay the principal on time.

Several lesser known facts like this can help you to acquire housing finance in India and repay it back the smart way. Do make sure to check for all facts about your home loan before signing on the dotted line.

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The important terminologies associated with home loan i.e. “EMI” (Equated Monthly Instalments). It can either be paid through auto-debit instructions set up on your salary account or you can send cheques every month. Visit https://www.grihashakti.com/knowledge-centre/home-finance/why-you-should-use-a-home-loan-calculator-before-applying-for-a-loan.aspx for more details.

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When you apply for home loan, you should know details like when you prepay a loan, the prepayment penalty applicable, the minimum lock-in period, etc. Visit https://www.grihashakti.com/loans/home-loan/for-buying-home.aspx

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While home loans in India are time-consuming, NBFCs are an excellent choice for a borrower looking for a faster loan. Visit https://www.grihashakti.com/

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If you’re a woman or a man looking forword to availing a home loan, here are a few reasons why you should borrow with the woman of the house as the sole (or primary) applicant. Visit https://www.grihashakti.com/loans/grihalaxmi-loan.aspx

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Many different types of loan products to suit the specific need of the borrowers. Visit https://www.grihashakti.com/loans/index.aspx

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Only the places which are considered as statutory towns in the 2011 Census are eligible for the CLSS under PMAY. Visit https://www.grihashakti.com/loans/pradhan-mantri-awaas-yojana-pmay.aspx

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For instance, the Grihalakshmi Loan offered by Grihashakti Finance provides home loan to women at a concessional rate of interest along with a host of benefits. Visit https://www.grihashakti.com/loans/grihalaxmi-loan.aspx

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Those who are eligible for the PMAY can also apply for a home loan for construction or purchase of a home. Visit https://www.grihashakti.com/loans/pradhan-mantri-awaas-yojana-pmay.aspx

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Your credit score plays a pivot role in obtaining a home loan since it reflects your trustworthiness. Visit https://www.grihashakti.com/loans/home-loan/for-buying-home.aspx

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When it comes to these two factors, it is vital to search and compare to find the best of everything. Generally, you can get a loan against property for 15 years with an interest rate ranging between 12% and 16%. Visit https://www.grihashakti.com/loans/commercial-property-loan/loan-against-property.aspx

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PMAY housing finance scheme is an excellent way for first-time buyers to get a subsidy on home loan interest. Visit https://www.grihashakti.com/

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Almost all financial institutions and other lenders have an EMI calculator on their site. Visit https://www.grihashakti.com/emi-calculator/index.aspx

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Some of the home loan calculator also offers a schedule of your EMI payments. Based on the loan amount, tenure, and interest rate you’ve entered. Visit https://www.grihashakti.com/emi-calculator/home-loan-calculator.aspx

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As the closing of a construction loan for commercial property usually involves a lot of procedural nuances and documentation. Visit https://www.grihashakti.com/loans/commercial-property-loan/construction-commercial-property.aspx

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When it comes to a commercial property loan, the lenders would also like to know your business or property strategy. Visit https://www.grihashakti.com/loans/commercial-property-loan/index.aspx

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In addition, you need to see how you can avail of schemes like the PM Awas Yojana to optimize the total budget of home. Visit https://www.grihashakti.com/loans/pradhan-mantri-awaas-yojana-pmay.aspx