Indian cities that provide abundant opportunities in terms of work and education experience a significant rise in their population. With this rise in population, there is a concomitant increase in demand for homes. Now, the demand for residential property can either be temporary (rented homes), or permanent. The permanent settlers who wish to set up base in the city of Pune look for homes within their budget and apply for Home Loan in Pune accordingly to pay for the property. Home Loans are debts that can be availed from different lending institutions in Pune to finance the purchase of any residential property. These loans, as we know, do not cover the entire cost of the property, but cover a major portion of it. This portion varies from anything between 70% to as much as 85% or even 90% of the property’s asking price. After the applicant avails the loan, he/she will have to make monthly payments in the form of Equated Monthly Instalments (EMI) as repayment for the tenure decided. This EMI consists both of the amount borrowed and the interest charged by the lending institution from which the loan was availed. Given below is a list of points one needs to keep in mind when planning for and availing a Home Loan in Pune:
Amount to be Borrowed- The loan amount should be decided upon after due consideration as it has a lasting impact on the financial stability of the loan applicant. Moreover, the applicant should try to pay the maximum amount as down payment for the home as it reduces the overall EMI to be paid later. Type of Interest- Home Loans can have fixed or floating interest rates; in fixed rate loans, the interest rates remain fixed for a major part of the repayment tenure, whereas for floating rate Home Loans, the interest rate keeps changing as per the policies of the lending institutions in Pune. Loan EMI Against Net Income per Month The most important part of planning for a Home Loan is assessing the EMI to be paid as repayment of the loan availed against the net monthly earnings of the applicant or applicants (for joint Home Loans). Remember these above mentioned points before planning to take a Home Loan in Pune and it will ease your Home Loan affordability.
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |