Delhi is the national capital of India. Real estate market in Delhi NCR was facing a setback, but the Government is doing all that it can to capitalise on the real estate market and bring it at par with the other cities. Gurgaon and Noida have seen an increase in the commercial activities due to less availability of space in the Central Business District (CBD). Dwarka, Noida, and Yamuna expressway, in the past few months, have seen a rapid increase in residential activities and will remain to steer the residents in this area.
Everyone wants to buy their own house, and if you are finding living in a rental apartment easier, then this may be a misconception. Residing in a rental apartment, you may save a little amount of money, but you end up changing houses every year and also may not get the same amenities that your previous home has provided. If you are looking to buy your own house but are still living in the rental apartment due to financial constraints, you should consider applying for a Home Loan. Non-Baking Financial Companies (NBFC’s) and Banks issue Home Loans in Delhi NCR. The loans are given for a tenor of 15 to 20 years. The tenor can be extended up to 30 years if you set perfectly under the eligibility of extended tenor.
You can apply for a Home Loan on the website of your bank or NBFC. Your financial institution will then review your income, savings and past loan repayment records and on that basis, sanction you the loan. The loan amount depends on how much is the cost of the real estate property. You may choose to request a loan amount which is less than the cost of the property and pay a small amount of the property from your savings. However, it is advisable not to do that.
Before applying for a Home Loan in Delhi, here are some aspects to keep in mind:
- Down Payment:
100% of loan amount is not sanctioned to you by your financial institution as they do not have the entitlement to do so. You will receive 80 to 85% of the loan amount from them. Your financial institution will expect you to pay 15 to 20% of the loan amount as down payment. Hence, if you are applying for a loan of 60 lakhs, ensure that you have at least 12 lakhs in your account for paying the down payment.
- Front-End Ratio:
Commonly known as EMI (Equated Monthly Installment) to income ratio. This amount is calculated by dividing projected EMI with your monthly income (gross income). Principal, interest, taxes and insurance amount are some of the payments of front-end ratio.
- Back-End Ratio: This is known as debt to income ratio. The payment of outstanding monthly debts such as credit card receipts, other loans and child support payments is the amount which is deducted from your monthly income is called the back-end ratio.
- Maintainance Charges: Maintaining your home and paying all the bills on time is extremely important. Hence, you must manage your expenses wisely once you have purchased your home. You will have to spend on home appliances and also pay the maintenance charges for your home. Hence, you must keep in mind all the responsibilities after the possession of your home.
Before applying for loan, you should check all the required documents and eligibility criteria of Home Loan to avoid any rejection or time delay. The eligibility criteria for a Home Loan are as follows:
- Age of the applicant should be between 25 to 58 years
- Applicant should be an Indian citizen
- Applicant should have a minimum of 3 years work experience and must be salaried
- Applicant can apply for a minimum loan of 3 lakhs to a maximum of 10 lakhs
If you are living in a rental apartment and wish to buy an apartment, then you must apply for a Home Loan in Delhi. A Home Loan is a viable option as you have sufficient amount of time to pay off the loan as well as manage your expenses.
Home Loans are gaining popularity as a major chunk of working professionals who are in between 20’s to 30’s are looking to make their own house.