Cost of purchasing a property involves high-value investments. So, considering the last recorded Year-on-Year growth rate of house property price was 11.5%, it is no surprise that people are seeking additional financing options to fund their house purchase.
Catering to the growing funding demand, the financial market thus facilitates house purchase of Indians through the home loans. Some of the reputed NBFCs like Bajaj Finserv, therefore, bring the best home loan in India with attractive features and offers.
The accompanying benefits like low rates of interest, Top-up Loan on balance transfer also make these home loans affordable.
They also bring offers that are already approved to make the process of availing finance hassle-free while saving precious time. These offers are available on secured credit options like home loans as well as unsecured credit options like personal loans and business loans; along with several other financial products.
However, due to a high credit amount, individuals may be burdened with the hefty repayment amount, which includes both principal and interest combined. To avoid such burden and stress on your finances, it is thus better that you prepare yourself before finalizing on your advance from the available home loan offers.
Preparing to Avail a Home Loan – Things You Need to Do
- Compare the Interest Rates of Various Lenders
Home loans are usually availed in a high amount to pay for the purchase price of the property. If the housing loan interest rates are high, you end up paying a hefty amount as interest by the time your loan tenure ends.
Therefore, you need to be careful with the interest rate when availing a home loan. To make sure you get the most affordable lending rates, you must carry out interest rate comparison from various lenders offering housing loan.
A low rate of interest means you have to pay lower home loan interest, which ends up reducing your EMI burden. It thus helps you pay for the EMIs conveniently without stressing your finances.
- Choose the Loan Tenure Wisely
Loan tenure has a significant impact on the amount you repay to settle the loan liability. If the loan tenure is long, the interest rate will be calculated on the unpaid loan amount for more number of months. Hence, the total interest payable is a considerable amount piled up over the remaining tenure. On the other hand, with a shorter loan tenure you the total interest calculated is lower, which makes the loan affordable.
It is therefore advisable that you choose a tenure that suits your repayment capacity. When looking for the best home loan in India, you may check out features like flexible tenure ranging between 2 to 20 years.
- Be Clear About Other Applicable Charges
Other applicable charges like processing fees, prepayment charges, penalty charges, etc. may shoot up the cost of the loan, thus burdening you with a high amount of repayment.
You must, therefore, make sure to check the important home loan fees and charges beforehand so that you don’t end up paying these charges resulting in an unnecessarily high total cost of credit. The best home loan in India is available with minimum processing fees, low to no prepayment charges and other fees.
- Calculate Your Fixed Monthly Obligation, i.e., EMIs
While you need to look for the best home loan features when availing this credit, it is also necessary to estimate the EMIs you will be asked to pay. It is because it will have a significant impact on your monthly budget and being prepared for the same will help you strategically plan out your finances. Also, there are other benefits of calculating EMIs before taking a home loan.
Make sure to estimate the feasibility of payable EMIs through an EMI calculator before you proceed with the home loan application. Suitability of the EMI amount as per your income can be estimated through your debt-to-income ratio. It should remain well within 50%, including the new EMI to make the payments convenient as per your income. Once you have confirmed these factors, you can be assured that the loan burden is reduced. Now, you may proceed with home loan online apply and avail the advance to purchase your house.