Pune is a beautiful city to live in. It has been listed as the most livable city several times due to the lifestyle it offers, its pleasant weather, and also its proximity to other cities is an attraction. Pune is the second largest city among others in Maharashtra, and it has been considered among the 100 smart cities. It is the chief education hub and is viewed as a paradise to live in, with flats and houses that range from affordable to luxury. These features have led to a spike in real estate demand. This has caused many finance companies to come up with the best home loans in Pune.
Everyone dreams of buying a house instead of paying the rent. And when it comes to selecting the city for the purchase of a house, Pune is always on the list of people’s choices. With multiple lenders offering loans, it has become easy to fulfill your dream. A home loan is basically the amount that the lender gives you to buy a house, and in return, you have to pay the interest rate, and your house becomes the collateral. This article will help you to know about home loans in Pune.
When you are planning to apply for a home loan, being aware of your eligibility is a prime concern. Home loans are available for both the self-employed and even the salaried people.
Eligibility for self-employed
The eligibility criteria for a self-employed person for a home loan are as follows:
- The applicants who are eligible are Indian residents, Non-residents of India, and even persons of Indian origin (POI).
- The age has to be between 21 to 70 years.
- The existing business of the applicant has to be at least three years old
- The income should be at least five lakhs a year
- The credit score of the applicant should be 750 or above in order to enjoy the low-interest rate.
Eligibility for salaried
The eligibility criteria for salaried applicants are as follows:
- The applicants should be Indians or Non-residents of India or Persons of Indian Origin (POI).
- The age should be between 18 to 70 years
- The work experience of the applicant has to be at least two years
- The minimum income should be Rs. 25,000 per month
- The applicant needs to maintain a credit score of 750 or above to enjoy the lower interest rates
Documents mandatory for home loans in Pune
Following are the documents needed for applying for a home loan in Pune city in Maharashtra and avail the best Pune home loan rates:
- The home loan application form is completely filled out and signed
- The passport-size photographs of the applicant
- Documents for identity proof like the aadhar card, driving license, PAN card, voter ID card, and passport
- Documents for address proof like aadhar card, driving license, passport, and voter ID
- Documents for proof of business continuity for self-employed applicants
- Document for income proof like the form no. 16 or the pay slips for salaried applicant
- Even the bank account statements for the past six months
Ways that will help to get lower interest rates
Following are the ways that you need to be aware of as it will help you to get lower interest rates on your home loans:
- Research for other options for loans: There are many home loan lenders in Pune. So doing the comparison for essential factors like the interest rates, tenure of the loan, type of loan, whether fixed or floating, and the EMI to be paid monthly gives you a better idea and helps you to choose the best home loan lender in Pune.
- Be aware of your credit score: While lending you the loan, it can be any loan, like a home loan or personal loan; a credit score is a prime factor that is considered by the lender. So if you are planning to get a home loan maintaining a good credit score is important to get lower interest rates as credit score is the deciding factor for your interest rate. A credit score is not built overnight; it is done eventually. A credit score is maintained by timely payment of your past EMIs.
- Pay more down payment: When you buy a mortgage loan in Pune, you are needed to pay a certain portion of the cost of your house. This portion of a payment is called the downpayment. This is ideally between 20% to 30 %. The remaining amount is converted to a house loan with the equated monthly installments. If you have more savings, you should increase your downpayment portion, and then you will have to pay interest for less amount, which ultimately reduces your interest rates.
- Top-up scheme: Many housing finance companies offer good top-up facilities. You should always check for schemes provided for a top-up when you select your housing finance company. Top-up is basically the supplementary amount that you can get on your current loan amount. The main advantage of a top-up facility is that the entire process is easy, hassle-free, and requires the least documentation. The top-up facility makes you available with the fund at a good rate when compared with unsecured loans like personal loans. You can get the top-up amount for any of your requirements like home expansion, house renovation, education expenses, marriage expenses, etc. So this is a profitable deal.
- Special offers for a home loan: In the competitive world, home loan lenders provide you with various offers for your home loan in order to support you in making your journey of buying your dream house a profitable deal. These offers are very much profitable and helpful while you avail of a home loan. Offers are generally on processing fees and other charges, and these offers truly help you to decrease the cost of your borrowing.
So it is advisable to first search for the right lender for you to get the best home loan in Pune. The aforementioned information will guide you in your journey of availing the best home loan deal in Pune and help to buy your dream house at a low cost.