Hyderabad or Pearl City is a great place to settle in as it offers the liveliness of a metro city and the peace and calm of a quaint, heritage destination. Moreover, being a major hub of technology and business related employment opportunities, people from all across the country as well as abroad come to Hyderabad to seek jobs and to set up a business. This has led to an increase in demand for residential properties in the city. There are some people who visit the city temporarily and therefore set up base in a rented home. There is a major portion of people who have plans of settling permanently in Hyderabad- for them, instead of renting, investing in a home is a better idea.
We all know that investing in a home is a major financial decision and spending one’s entire savings on a home is not such a great idea. This is where a Home Loan comes in.
To avail a Home Loan in Hyderabad, individuals can approach a bank, Non-Banking Financial Company (NBFC) or a Housing Finance Company (HFC). Banks have a lower rate of interest as compared to HFCs but getting a loan from an HFC is easier as they have simpler lending terms and conditions. NBFCs offer Home Loans at interest rates similar to those of banks and their eligibility and other terms are very simple.
Given below is a list of factors that Home Loan applicants in Hyderabad ought to consider before applying for the Home Loan:
Applicants need to consider their past repayment history as it has a profound impact on the current finances and creditworthiness. The credit score is a vital parameter that determines if an applicant is capable of repaying loans. A low credit score would mean incapability to repay loans and hence, would affect approval on future loan applications.
Eligibility Criteria of the Lender
A key factor to be assessed before applying for a loan is the eligibility criteria of the lender. Most banks and NBFCs require their Home Loan applicants to be within a certain age bracket, earn at least Rs 45,000 (this value depends on which lender is chosen) and have a work experience of at least 3 years in an organization of good repute.
When the applicant is not eligible to avail the loan, his/her spouse, sibling and/or parent can be co-applicants. In such cases, their cumulative income and credit history are considered.
The above mentioned are a few of the important factors while availing a Home Loan in Hyderabad. With due consideration to these factors, taking the Home Loan and its repayment become much easier.
Aman 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.