Over the years, Noida has become the hub for mobile app and software development companies like HCL, Microsoft etc. This district of Uttar Pradesh also houses India’s largest unicorn startup ‘Paytm’. Job opportunities surrounding these hubs and proximity to Delhi attract a large scale population in Noida.
Further, factors like a wide range of residential choices in the budget segment thrust individuals, mostly millennials, towards purchasing their dream homes. In such cases, those who have decided to buy a home with the help of a home loan in Noida must consider certain things to secure the best deal.
Smart things to consider while availing a home loan in Noida
Following is a list of things/pointers that individuals of Noida must keep in mind before applying for housing finance:
- Credit score
A credit score is an important eligibility parameter that lenders use to assess the creditworthiness of borrowers. Individuals wondering “what is credit score” must know that it is a three-digit number that ranges from 300-900. The higher the number, the better the chances of getting loan approval. A credit score of 750 is considered ideal for hassle-free home loan approval. Individuals must check their credit scores before applying for a home loan in Noida and keep the number closer to 900, which can easily be done by paying dues on time.
- Loan tenor
Before availing a home loan in Noida, individuals must decide the tenor to efficiently handle the repayment period. A shorter home loan tenor helps to reduce EMIs significantly. Alternatively, long tenor increases monthly payables. Here, individuals must note that though reduced tenor lowers EMI burden, it increases the total interest outgo and results in an increased borrowing cost. Here, a home loan EMI calculator can help them find a suitable tenor. Individuals can try various combinations of loan amount and tenor and go for the EMI that fits them best.
- Down payment
Down payment of home loans refers to the amount applicants are required to pay upfront to lenders. According to the rule set by the RBI, lending institutions can pay 75% to 90% of a property’s value as a home loan amount. It means borrowers have to arrange the remaining amount themselves. However, if individuals have surplus funds, they can make a higher down payment and substantial amount on payable interest in future. Here, borrowers can use the home loan eligibility calculator to learn the home loan amount they are eligible for and decide the down payment they have to pay.
- Fees and charges
While sanctioning a home loan, lenders often attach various types of fees, such as pre-payment penalties or additional charges. Home loan borrowers of Noida must know about these charges to avoid any discrepancy in future. Additionally, they must know foreclosure norms to pay outstanding loan amounts whenever they have excess cash without any hassle. Further, they must learn about all terms and conditions/company policies to ensure a smooth loan availing experience.
- Interest rate
Another important pointer that every housing loan applicant of Noida must keep in mind is the interest rate. Here, borrowers need to tally the interest rate offered by various lenders and settle for the one that provides competitive rates. Additionally, borrowers must decide between two types of interest rates: floating and fixed interest rates.
In fixed interest rate home loans, Equated Monthly Instalments remain constant throughout the tenor. On the other hand, in floating interest loans, EMI varies; hence borrowers must choose judiciously. Remember, individuals can avail home loan tax benefit on the interest portion as per section 24(b) of the Income Tax Act.
There are reputed financial institutions that offer high-value home loans at a competitive interest rate. These lending institutions provide pre-approved offers to make the loan availing process simple and straightforward. These offers are also available for other financial products, such as loans against property, home loans. Individuals can check their pre-approved offers by providing their names and contact details.
By considering the things/pointers mentioned above, individuals can easily avail home loans in Noida.
