The latest budget for this fiscal has announced a hike in the amount to be paid as interest for home loans. Owing to this milestone change, financial institutions have reported an upsurge in the demand for home loans in Kanpur. Around 17 localities in here, the demand has been increasing for quite some time.
Additionally, the overall demand for home loans in India is predicted to grow at 40% in the next 5 years which is currently pegged at 28%.
Consequently, there have been changes in application procedures and approval rates. This is why; it is desirable to have a background of the same along with the home loan offers before availing such a loan.
Tips to consider before taking a home loan
The following tips will help you in getting the best benefits when you opt for availing a home loan.
- Plan your EMIs
Several financial institutions will offer various repayment terms, however you need to select the most appropriate EMI to suit your needs. A higher down payment will reduce the overall loan amount you have to avail and also decrease the EMIs that you will need to pay.
- Research on loan terms and features
Do not settle for a lender or a set of loan terms without proper research. Look for more than just attractive home loan interest rates. Select the most suitable repayment tenure and the down payment. Use a loan EMI calculator to compute the most suitable EMI amounts.
- Repayment tenure
A longer tenure will overburden you with an increased outstanding loan amount. So, it will be wise to opt for a shorter tenure for the repayment. Moreover, the interest rate also increases in case you repay for a longer time.
Go for loan terms which make your repayment affordable and easy. Apply for home loans in Kanpur which mandate nominal additional charges to availing such loans, e.g. – processing fees, secure fees, etc. Note that such charges will be deducted from the availed loan amount.
- Foreclosure terms
The terms are ever changing and so it is important to keep note of the regular changes made by various financial institutions, including foreclosure.
- Extra charges
When you opt for a home loan online apply, there are some charges on home loans that you must know about prior to its approval. Check if the charges are one time or monthly, so that your monthly budget is accordingly analysed along with the EMIs.
- Credit score
Lenders prefer applicants with a credit score around or above 750. If you do not have such a score, make sure you improve it before you apply. Such a credit CIBIL score will help lenders consider you as a less risky borrower and offer the most repayment-friendly terms.
- Read instructions
You should go through the documented instructions carefully for a comprehensive understanding of the loan application. In addition to this, you can check the EMIs with the help of an online EMI calculator for your convenience.
- Eligibility check
It is important to check your eligibility criteria before applying for a home loan. Be active and check with the lender of your choice about the necessary prerequisites. Only if you fulfil those criteria will you be able to avail the loan.
Therefore, as you apply for home loans in Kanpur, make sure that you do it carefully so that the whole process is simplified. Additionally, try not to miss out on some of the best benefits offered by several financial institutions.