As per a recent report from the Economic Times, the home loan market in India grew at a CAGR of 16% between 2012 and 2018. The CAGR rate across districts of Delhi along with other metro cities changed from 8-12% to 15-36% by the end of FY 2018. The rise in demand for property purchase and acquisition of loan is thus evident.
Subsequently, availing a home loan in Delhi for house purchase requires candidates to meet specific requirements and complete the application procedure. It is to note that candidates must make themselves well-aware of the loan procedure beforehand so that they can get their loans approved without having to struggle more.
Given below are a few things they must streamline before applying for a home loan.
A Guide to Availing Home Loan in Delhi
- Eligibility Criteria
Financial institutions provide home loans to applicants only if they adhere to the eligibility criteria, among other considerations. Hence, your application for a home loan in Delhi should meet the below conditions –
- Salaried employees within the age range of 23 to 62 years
- Self-employed professionals within the age range of 25 to 70 years
- Candidates having CIBIL score of 750 and above
- Minimum monthly salary for availing loans in Delhi should be Rs. 30,000
- Minimum work experience of 3 years
- Self-employed candidates need to produce proof of business continuity of 5 years and more while initiating home loan online apply.
- Documents Required
Following is a list of all documents you need for a home loan as specified by most leading financial institutions.
- KYC documents.
- Proof of address.
- Proof of identity.
- Recent salary slips (last three months).
- Bank statement of the last six months.
- Proof of business continuity for 5 years or more (for self-employed and business professionals).
- Interest Rates and Charges
Interest rates for a loan are decided by measuring constraints like –
- Down Payment – Financial institutions offer lucrative home loan interest rate when applicants make around 20% of the property value as a down payment.
- MCLR Rate – MCLR rate is the minimum rate at which financial institutions offer credit to consumers. It has a direct impact over loans with floating rates of interest.
Applicants can thus compare the EMIs as per both fixed and floating interest rates and choose accordingly.
Consequently, consider a few more things you must know before taking a home loan to avail this advance with a competitive rate of interest.
- Choose a Suitable Loan Tenor
Loan tenors are an essential decision as it can affect your financial stability. Some candidates with higher financial obligations cluttered for a month can find it challenging to pay hefty EMIs, and hence the tenor chosen should be extensive.
Note that choosing a long tenor for your home loan in Delhi can increase your total interest incurred on loan amount. Keeping the tenor short can bring you competitive interest rates. However, EMI to be paid will be high in this case.
- Calculate EMI
Borrowers need to pay EMIs for entire loan tenor based on the interest rate, principal amount and the tenor itself. Interested individuals can thus use a house loan calculator and submit necessary details such as loan amount, rate of interest and tenor to estimate their installments.
Estimating EMIs before application of home loan in Delhi is essential as one can plan his/her monthly financial obligations in advance. It also eases the management of your monthly income. Interested candidates should thus keep these factors in mind before they apply for a loan.
Once they are sure of the above factors, they can compare features to find the best lender and proceed to apply. They must also use an eligibility calculator to determine their eligibility before applying.