How to Avail Home Loan in Pune

Pune has witnessed a thriving real estate growth, with buyers and real-estate developers showing a keen interest. This is due to the reduced interest rate and strategic reduction of stamp duty, which eased the home buying process. Moreover, rapid developments and improvements of the transit system are added advantages that have bolstered Pune’s real estate demand.

Hence, demands for a home loan in Pune are rising as well. Here’s a detailed guide for the home loan aspirants in Pune on how to avail of it, eligibility criteria, and more.

Eligibility criteria for a home loan applicant

An applicant’s eligibility often differs with each financial institution. Therefore, it is essential to review these parameters before applying for a home loan in Pune.

  • In general, a financial establishment determines a borrower’s repayment capacity before approving a home loan. It is based on the applicant’s monthly disposable income or surplus income and other factors like liabilities, assets, stability of the income, etc.

For example, a minimum of three years of work experience for salaried and five years of business vintage for self-employed applicants are common requirements set by several lenders for a home loan.

  • Most financial institutions set an upper age limit for home loan applicants. For instance, it may vary between 24 and 62 years for the salaried applicant. For self-employed individuals, this age restriction is usually between 25 and 70 years.
  • The tenor and home loan interest rates vary with each financial institution and determine the maximum home loan amount for individual applicants.

In addition, the loan to value amount (LTV) also depends on the individual’s repayment capacity, credit history, and property’s location and amenities. One can use the online home loan EMI calculator to know the convenient loan amount per their salary at the outset.

  • An individual failing to meet the eligibility parameters can apply with a co-applicant for a joint home loan. A co-applicant can be a parent, brother, spouse, sister, son, or daughter. Each applicant must fulfill the eligibility criteria to qualify for the required housing loan amount.

One can also use an online home loan eligibility calculator at their convenience to assess their eligibility before applying for a home loan from their preferred financial institution.

How to apply for a home loan in Pune?

After meeting the eligibility criteria, one can apply for a home loan both online and offline.

For online:

  • Visit the official website of your preferred financial institution.
  • Fill in your personal, financial, employment information and residential details.
  • Apply for the desired loan amount and suitable tenor.
  • Submit this online form with other relevant documents to complete this application process.

For offline application, visit your preferred financial institution and proceed with the required formalities after reviewing the terms and conditions.

What are the types of interest rates offered by the financial institution?

Financial institutions offer either of the following interest rates on home loans:

  • Fixed-rate refers to a rate that is fixed throughout one’s loan tenor. It helps a borrower determine total interest payable at the onset of the repayment tenor.
  • Floating interest rate means the interest rate changes with fluctuation in the market.

The borrower must review the interest rate while applying for a home loan in Pune for his future convenience.

Many leading HFCs extend high-value loan amounts at a nominal home loan interest rate against meeting the simple eligibility criteria and minimal documentation. These financial institutions provide pre-approved offers, which further streamline the process. One can check their pre-approved offer online by providing their name and contact details.

The property-price appreciation in Pune is gradually attracting buyers and developers. Moreover, the growth of IT hubs, prestigious educational institutions, metro rail, and proper transportation systems are added leverage for attracting investment in Pune’s real estate industry.

Keeping all these in mind, a home aspirant can confidently invest in buying a home in Pune and reap the lucrative property value benefits in the coming years.