7 Key Factors to keep in mind while availing a Home Loan

#1 CIBIL Score

Your CIBIL score should be in the range of 750 and more. This will increase your chances of availing a home loan

#2 Charges

There are different charges to process loan. Namely, Administrative, Processing or Service Charge. Discuss this with your bank before availing or applying for home loan. It differs from bank to bank.

#3 Eligibility Check

Main factors for eligibility check are - #1 Age - 21 to 65 years #2 Credit Score - CIBIL Score #3  Min Monthly Salary - Rs 10,000 #4  Min Business Income - Rs 2 Lakh PA #5 Tenure of loan - Max - 30 years #6  Existing loans will impact your eligibility too. #7 Adding an earning family member as a co-applicant will enhance your chances.

#4 Interest Rate & EMI

You can expect an interest rate of 6.65% to upwards of 7.5% depending on various factors discussed in last slide. 

There are 3 types of interest rates - #1 Fixed #2 Floating #3 Hybrid

#5 Tenure of Home Loan

Tenure of a home loan varies from  5 years to 30 years. In case you want to pre pay the loan amount before stipulated time there are charges you need pay. You should check those charges with the bank. We will also discuss this in coming slide.

#6 Downpayment

Check the down payment you are planning to pay. Basically this is the amount you have in your bank, which you are not going to take as a loan. According to down payment, your loan amount (principal) is going to vary. 

#7 Pre payment Charges

After you buy home, down the line in life you get bonuses from your employer, or make money some other and you desire to close the loan or in simple terms pre pay then you will be levied with some charges. Check the charges with your bank. Yes you need to pay an amount to close the loan before time. 

#8 Home Loan Insurance

In case if there is some untoward happen to the borrower then the remaining amount of the loan will be paid by the insurer to the bank. In this case, the kin of the borrower still have the home with her.

#9 Documents

Check you have all the documents a bank need to lend you a home loan. Generally bank ask for - #1 ID proof #2 Income Proof #3 A letter issued from your employer  Check in detail what else is required from the bank.

#9 Inability to pay EMI

This is a scenario where for some reason you are not able to pay the EMI.  Clarify with the bank, how many EMIs can be bounced. What happens after you exhaust all your options and not able to pay the amount? This will keep you prepared for the worst.