The area referred to as Greater Faridabad between Agra Canal and Yamuna River is a newly developed industrial and residential area. Out of the sectors 66-89, the region spanning from 75-89 is a major residential zone.
After the development of this area, home loan in Faridabad has become a major source of credit in Haryana and the extended Delhi region. As it becomes vogue, it is necessary to not compel yourself into taking a loan in haste but consider few factors which might help you make an informed and sure decision.
Major factors considered when availing a home loan
Here are the basic components which should be duly considered when availing a housing loan –
1. Credit score: It reflects credit history and establishes his/her liability worth to the lender. If the score is beyond 750, a borrower will face no difficulties in availing a home loan. If your score is below or just above 600, you might first consider improving your score before applying for a home loan in Faridabad.
2. Repayment tenure: When opting for a repayment tenure, you should be certain that it suits your affordability and doesn’t add to your financial stress. In case you can afford to pay expensive EMIs, the best option is a shorter repayment tenure as it reduces the home loan interest.
If you find it troublesome to pay hefty EMIs, choose a longer tenure which will reduce the EMI but increase interest amount. Reputed financial institutions and NBFCs offer tenures based on how young you are. Therefore it is an advantage to ta avail a home loan in your 20s.
3. Interest rate: Home loans have comparatively lower rates of interest as they are secured loans. A deciding factor for interest rates is the CIBIL score, as they have an inversely proportional relationship. However, there is always scope to get the lowest interest rate on home loans if you negotiate with your lender.
4. Income: You should consider your current and future income before you for the home loan online application process. These play a critical role in your loan EMIs, which will future determine the tenure.
5. Downpayment: When availing a home loan, the lending institution offers only a percentage of the property price as a loan, which they directly pay to the seller. The borrower has to pay the remaining part in question as a downpayment. Therefore, before availing a loan, an individual should note his/her savings and thereby decide accordingly.
6. Eligibility: These are the eligibility to apply for a home loan in Faridabad –
- Age should be within 23-62 if you are a salaried individual.
- If you are a self-employed individual, age should be within 25-70.
- In the case of salaried individuals, the work experience should be a minimum of 3 years and 5 years for self-employed individuals.
- You should be an Indian citizen.
7. Documentation: An individual would require the following documents to apply –
- KYC documents
- Address proof
- Form 16 for salaried individuals
- Bank statement for the last 6 months for a self-employed individual
- For self-employed individuals, documents to attest a minimum of 5 years of involvement in the business.
8. Processing fees: In most cases, there is a minimal formality fee levied by the institution on the loan amount which the borrower has to pay upfront. This fee depends on the lender. Therefore, when browsing for loans, the individual should use an EMI calculator to compare total loan amounts from different lenders to see, which has the lowest aggregate amount.
9. Tax benefits: The income tax benefits which you will enjoy when availing a home loan –
- 80C – Up to Rs. 1.5 Lakh on the principal amount.
- 80EEA – Up to Rs. 1.5 Lakh on the interest amount under affordable housing schemes.
- 24(b) – Up to Rs. 2 Lakh on the interest amount.
10. Refinancing: You always have the option to refinance your home loan if you find a better deal somewhere else. There are several reasons for refinancing your home loan, a lower rate of interest being one of them. Therefore, you need not be anxious about whether you are going for the best deal available when availing a loan.
By considering these above-mentioned factors, you are now well-equipped to wisely avail a home loan in Faridabad, which suits your needs and comfort. Make sure to compare all the available options before you take the right decision.