Adorning the beautiful Mughal wonder Taj Mahal, Agra is now one of the populous most cities of the country attracting tourists from all over the world. This increment in tourist visits has created a huge demand in the real estate industry as more hotels, resorts, and restaurant projects are lined up for the coming years. As per 2019 price trends, the starting range for properties in Agra lie at Rs. 1.55 Lakhs whereas the average property range is around Rs. 56.15 Lakhs.
Thus, acquiring a property or house at Agra for residential or commercial purpose needs extensive fund investment. Consequently, availing home loan in Agra can solve this purpose. But, not knowing the intricate process and concept of home loan may work in a different manner and cause you substantial loss.
Therefore, consider these points before you opt for a home loan in Agra –
Every borrower must know that financial institutions do not approve the entire property amount as a loan. They can approve finances for at most 80% of the property value as loan amount, and the rest has to be paid by the borrowers only. Hence, ensure you have such a sum of funds available for a down payment. Also, lowering this down payment value can increase the loan to value ratio. And higher LTV value leads to increment in home loan interest rates of individuals.
Equated monthly installments are to be paid every month until the tenor of the loan is exhausted. It can be calculated using the EMI calculator by inputting variants like loan amount, interest rate, and tenor. Evaluating this before applying for a loan will help you plan your monthly financial obligations before time.
Loan tenor is one significant consideration for your home loans. If you want your equated monthly installments to be less, choose a long tenor loan. But, if you want a low-interest loan experience then a short tenor will be preferable. Loan applicants often trim home loan tenor by paying hefty EMIs or making part pre-payments to seek maximum benefits.
Maintain CIBIL score
Maintaining a decent CIBIL score of 750 and above improves your financial credibility and gives you better access to loans.
There can be instances when a borrower has surplus funds in their account that can be used to make repayment of the outstanding loan amount. Even if there are incurred charges for loan foreclosure, you may save yourself from paying extra expenses and interest.
Prepayment and other costs on the loan
Financial institutions charge a fee if you make a part prepayment of your home loan. Additionally, they can charge processing expenses, cost evaluation expenses etc. in the form of cost on loan. So, you need to ask questions to your home loan lender about these additional costs incurred on loan.
A candidate must qualify the home loan eligibility criteria needed to apply for a home loan in Agra and have it approved. Below mentioned are the conditions borrowers must fulfill –
- The age bracket of 23 to 62 years for employees drawing a salary from a private or public firm.
- Self-employed individuals between ages 25 years and 70 years.
- CIBIL score of 750 and above.
- Minimum salary or income of Rs. 25,000 or more.
Candidates seeking finances have an option of home loan online application which can be availed easily if they fulfill the eligibility criteria as mentioned and produce documents including KYC documents, ITR receipt, salary slip, bank statement, etc. Furthermore, the above-mentioned factors are up for consideration before one plans to apply for a home loan in Agra. These will help them know the loan process better and acquaint them with preferable loan options.