Dos and Don'ts of a Housing Loan in India

Posted by Robbin K on September 23rd, 2016

One stays in rented house paying rent for years. The absence of right financial planning and the right advice from a financial advisor or any other source costs one more than one can think. Inflation and property price seldom fall. They are always on a hike leaving little room to find the right time to invest. One must keep his/her options open and have a plan B. The plan B should be of having one's own house. For this the individual would have to do certain things like market research, understand the various schemes offered by housing finance companies, look out for the right location for the house and so on and so forth.

Availing a Housing Loan in India- The Dos and Don'ts

Credit Score

First things first, one needs to have a good credit score in order to apply for a housing loan online. The credit score determines your ability to avail the housing loan offered by a housing finance company. One should always make the due EMI payments on time and ensure full payment of one's credit card bills, in order to keep the score away from negative marking.

RBI Policy and Clauses

It is always advisable to do a quick check on the RBI policy so as to know your subject before approaching a financial institute. Keeping a track of the policy even helps you estimate your budget well. The expected change of interest rate if any shall then reflect on monthly dues and you must be aware of the expected amount so as to plan your finances well.

Scheme and Fees

Speak to as many lenders as possible for your housing loan. Negotiate the interest rate and other fee charges to the minimum. The RBI allows us to do so with financial institutes. Understand the various fees structures especially like those of legal verifications as they hire external lawyers for the same. Check if any hidden costs are involved and negotiate for waivers right at the time of applying for the house loan.

Property Paper

The property deed must be legal and free of any discrepancies. The mortgage property owner, if more than one, should jointly sign a letter stating and allowing the housing finance company to do the needful.

Location of the House

Study the location of the new house well and ensure number of reference checks.

Avail the Loan and Pay Emis On Time

Ensure timely payment of EMIs once the loan is approved. You must remember to keep your credit score flawless at all times.

You can apply for a housing loan online for both personal and business purposes. Some investors, who understand the loan schemes well, apply for many such loans and avail its benefits. It is a big amount and thus the risk involved is high but it is a much preferred option than paying rent another set of years.


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Robbin K

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Robbin K
Joined: June 28th, 2016
Articles Posted: 40

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