Understanding Home Loans
A home loan is a long-term loan used to purchase residential property. It's typically the biggest financial commitment for most people.
Key Factors Affecting Interest Rate
- CIBIL Score: Higher score = Lower interest rate
- Loan Tenure: Shorter tenure = Higher EMI but less interest
- Down Payment: Larger down payment = Lower loan amount
- Lender: Compare rates from multiple lenders
Tips to Get Better Rates
- Improve CIBIL Score: Pay bills on time and keep credit utilization low
- Increase Down Payment: Try to pay 20-30% of property value upfront
- Choose Right Tenure: Balance between EMI and total interest
- Compare Lenders: Get quotes from at least 3-4 lenders
- Negotiate: Don't accept the first offer; negotiate with lenders
Documentation Required
- PAN, Aadhar, Passport
- ITR (Last 2 years)
- Property Documents
- Bank Statements (Last 6 months)