Things To Consider Before Taking A Home Loan In India | Tips For Home Loan
Things To Consider Before Taking A Home Loan In India
Having a home is one of the biggest ambitions of human being. If you have enthusiastic desire to build up your dream house, Home loans are the vital and expedient way to interpret the dream into reality. Before applying for home loan you must research on aspects of its process so, we are describing Things to Consider before taking a Home Loan in India. Getting a loan through the bank is tedious task so we are describing some relevant Home Loan tips for your convenience.
Taking a loan is easy to say but not to do. You need to be acquainted with essential factors to avoid any nasty surprises later. For those lucky ones to land an affordable deal home loan is the major hurdle which they will have to cross then they become eligible to get the keys of their abode.
8 Important Things To Consider Before Taking A Home Loan In India
Don’t go as per loan agent says, you must do your own research before taking home loan. First of all choose some bank names which provide home loan facility at best interest rate. Personally research on each bank and collect information like EMI, required documents eligibility criteria etc. and choose the bank as per your requirement which is most suitable and you pay installment easily.
Relevant Information About Eligibility
Apart from your financial strength your profile also effects because the amount of loan sanctioned by the banks depends on your past record i.e. paying record, How much amount you can spare to pay the EMIs credit card dues etc. required documents must be accomplished then the management authority accept your loan application.
Tenure Of The Loan
This is where you can decide between lower EMI at high or less interest payment and higher EMI on lower interest rate. If you want take higher loan that your EMI affordability allows you can get it for longer tenure, this will reduce your EMI and bank allow you to take higher loan amount.
Type Of Interest Rate
While taking a loan there are two types of interest rates exist one is fixed rate and other is floating rate. In case of home loans during the tenure of repayment, EMI does not change while on the other hand it changes along with changes in interest rate.
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The main aspect that influences home loan is probably the EMI, the monthly outflow that will go towards repaying your loan for at least 10 to 15 years. Don’t take any kind of stress that you are bounded for future. As per golden rule, never let your EMI exceed 40-45 % of your net monthly income because if you pre-pay your loan with additional disposable funds the banks don’t take pre-payment penalties now-a-days.
Be attentive of all the tax implications as well as benefits of home loan. You are entitled to complete exemption of interest on home loan; you have pay up to 150,000 or 100,000 on the principal amount so avail these benefits. If anyone wants to sell the property within the first 5 years, the tax saved on interest payments will be added to their income from sale of property and that will be taxed.
Insurance For Loan
It is another relevant fact that you should do once before taking the loan. Get home loan insurance for future sake. In case of any unfortunate occur you must be able to live in house. There are many certain policies those will offer benefits to its customers in the event of disability, adverse circumstances and critical conditions.
Read The Document Of Agreement
At the time of signature read the all agreement documents carefully to ensure all the terms and conditions are the same as what you want to acquire. Take your time as you want but check the whole papers before signing it.
Mostly peoples think that to get the home loan is very easy task because every day many offers come from banks and financial institutes across their mobiles. But they are far apart from reality. But if you are familiar with all the conditions and facts then this things become smoother for you.