The festival season is a great time to buy a new home. Lenders offer special deals, developers give discounts, and it's considered a lucky time to make this big decision. However, getting a home loan is a serious financial choice that needs careful planning and understanding. Let’s look at it in more detail.
During the festival season, lenders and real estate developers launch exclusive offers to attract potential homebuyers. Here’s why this is the best time to consider applying for a home loan:
Here are some good reasons to take a home loan during the festival season:
Attractive Interest Rates: Lenders mostly lower their interest rates during this time to attract more customers. Even a small drop in the rate can save you a lot of money over the years.
Festive Discounts on Properties: Real estate developers may offer discounts, cashback, or free extras like modular kitchens or parking spaces. This can lower the total cost of buying a home and help you borrow less money.
Zero Processing Fees or Reduced Charges: Some lenders may waive or lower processing fees, which can save you money when applying for a home loan.
Faster Loan Approvals: Lenders try to process loans quickly during the festival season due to high demand. This means you can get your loan approved faster and move into your new home sooner.
Taking a home loan is a big commitment, so it’s important to think carefully before deciding. Here are some key things to consider:
Loan Amount and Down Payment: Lenders usually cover 80% to 90% of the property’s price. You need to pay the rest as a down payment. The bigger your down payment, the smaller your loan will be, which can help lower your monthly payments.
Tip: Try to make a larger down payment to reduce your loan and interest costs.
Interest Rates: The interest rate affects how much your loan will cost. Even a small difference in the rate can change your monthly payment and total interest paid.
Tip: Compare rates from different lenders to find the best deal for you.
Loan Tenure: This is the time you have to repay the loan. Longer tenures mean lower monthly payments, but you'll pay more in total interest. Shorter tenures mean higher payments but less interest overall.
EMI Affordability: Before applying for a loan, use online calculators to find out your monthly payment (EMI) and make sure it fits your budget. Check the Home Loan EMI Calculator
Important: Your EMI should not be more than 40% of your monthly income so you can manage your other expenses comfortably.
Additional Charges: Besides the interest rate, there are other costs like processing fees, legal fees, valuation charges, and stamp duty. Be sure to consider these when planning your home loan.
Before applying for a home loan, you need to check if you meet the lender's requirements. Here are 5 most important factors:
Age: Most lenders want applicants to be between 21 and 65 years old. If you are younger, you may get a longer loan term, which can make monthly payments easier.
Income: Lenders usually require a minimum monthly income of ₹25,000 to ₹30,000 for salaried workers, and more for self-employed people. Your income affects how much you can borrow, and a higher income helps you qualify for a bigger loan.
Employment Stability: Lenders prefer applicants with steady jobs. Salaried employees should have at least one year with their current employer. Self-employed people need a stable business for at least three years.
Credit Score: Your credit score is very important for getting a loan. Most lenders prefer a score of 750 or higher, as it shows you have a good credit history. A lower score might lead to higher interest rates or rejection.
Property Valuation: Lenders check the market value of the home you want to buy. The amount you can borrow depends on this valuation, so make sure the property is priced correctly.
The documents that are required for a home loan are completely depending on the occupation of the applicant and the loan criteria of the banks and financial institutions. The following points define the documents required for a home loan.
| PROPERTY DOCUMENT | IDENTIFY PROOF | ADDRESS PROOF | INCOME PROOF |
|---|---|---|---|
| Sales deed and stamped agreement of the sale. | Pan card | Permanent address documents with any identity proof | Salary slip of salaried employees |
| Detailed information about the construction cost. | Adhaar card | Property tax receipt | Last 3-month bank statement of salaried employees |
| Bank account statement made to the seller. | Passport | Electricity bill | Trade license, GST registration certificate, etc. of self-employed. |
| NOC collected from the housing society. | Driving license | Telephone bill | Balance sheet and profit & loss a/c statement of self-employed. |
| Document Type | Description |
|---|---|
| Passport | Copy of the applicant's valid passport showing personal details, photograph, and signature. |
| Visa | Copy of the applicant's valid visa permitting residency in the country of residence. |
| Employment Contract | Copy of the employment contract or appointment letter, if applicable. |
| Overseas Address Proof | Copy of utility bills, rental agreement, or any official document showing the overseas address. |
| Indian Address Proof | Copy of Aadhaar card, voter ID, or any other document proving Indian address. |
| Income Proof | Salary slips, bank statements, or tax returns from the country of residence. |
| Power of Attorney (PoA) | If applying through a representative, a notarized PoA authorizing them to act on behalf of the applicant. |
| Photographs | Passport-sized photographs of the applicant. |
| PAN Card | Copy of PAN card issued by the Indian Income Tax Department. |
If you want to take a home loan this festival season, it’s important to know what to consider. This time of year has special benefits, like lower interest rates and discounts. But you need to plan carefully. Think about how much you want to borrow, the interest rates, repayment terms, and any extra costs. By understanding these things, you can make a smart choice that helps you buy your dream home and stay financially stable. Enjoy the celebrations and happy home buying!
How can EazyBankLoan help you in taking a loan?
We understand that getting a loan can be very stressful with confusing documents, unclear communication, and various other challenges. That is why we take care of your loan application process, saving you time and hassle by handling the paperwork and communicating with the loan providers.
Check the details here at EazyBankLoan
Need help? Reach out at support@eazybankloan.com
You can enjoy lower interest rates, special discounts from developers, and flexible repayment options.
Lenders consider factors like your age, income, employment stability, credit score, and the value of the property.
Most lenders require a down payment of 10% to 20% of the property’s value. A larger down payment can reduce your loan amount and monthly payments.
Yes, besides the loan amount, there are processing fees, legal fees, valuation charges, and stamp duty.
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