How to get the right finance for buying a property?

People always cherish a dream of owning a house, good bank balance and having some or the other form of property in metropolitan, urban cities or back in the rural region.  They will work hard to save every penny to achieve their dream of buying their dream property. But the ever-escalating property prices, inflation, and other financial commitments make it difficult to completely finance their dream property through savings. Although you can take a personal loan or arrange traditional finance that will come at extremely higher interest rates of around 20-25% with no flexible ways of repayment. At times you might have to part away from your dream project because you don’t have enough money to repay back to the loan amount.

 

Therefore, the ideal source would be taking a property loan from leading private finance firm or bank in India. There are several banks and firms who are ready to finance the potential customers who have a good job or business, credit history and hold a capacity to repay the debt on time. These loans are ideal to plan your dream property well before you retire from jobs/business and hand over things to your kids. Property loans are being available for buying new or resale property at competitively low-interest rates, flexible measures of repayment and the fair amount of time for debt clearance.

 

When you plan to buy a property and apply for property loan it is essential to know some facts to start with. Obviously, hunting for a reputed private finance firm and company would be first on your list. However, low-interest rates, no or less processing fee, no pre or post penalty charges, monthly budget evaluation, expenses should be next to figure out. Lender thoroughly examines all these things before sanctioning your loan.  How you establish your relationship with the lender matters a lot in cracking a better deal.

 

Some leading private finance companies offer interest rates as low as 8.50 to 9% with a mere processing fee of just 1% on the loan approvals. There is a special 0.5% concession for the women applicants. You get repayment tenure of around 15 to 20 years. However, tenure is also adjudged upon factors like customers’ profile, the age of the customer and property whilst applying and at maturity, specific repayment scheme as applied and other terms and conditions as per firm or bank policy.

 

Online sites help you compare products of different banks and firm under a single platform. You can compare it in terms of interest rates, processing fees, monthly installments, repayment option interest rates, income slab, age etc.  There are apps being introduced through which you can not only check your property loan eligibility, but can submit documents, make monthly installment payments, track your outstanding balance, and remaining interest rates or charges being incurred on your loans.

 

Your credit score plays a pivotal role in giving better deals for a property loan. Before lending out the loan, firm or banks will have a thorough check of your credit history through Credit Information Company such as CIBIL and go through repayment track records. You can visit this government site and check your credit report on your own. A score of 700+ gives more chances of low-interest rates and better deals. It proves you’re a responsible citizen and pay your debt on time. This report is accessed by bankers or firms once you apply for the loan to get inputs on your credit history.



About the Author

Hi, I am Sagar Pokale working with Home Finance company as Home Loan adviser owing the good knowledge of Home loan, Home Loans, Home Loan Balance Transfer, Mortgage Loan, Property Loan and Personal Loan so on.