As one of the prominent cities of India, Hyderabad has witnessed a surge in the number of home loan applicants. Experts believe that this market is expected to show exponential growth in the country at 22% CAGR from 2021-2026.
This can be attributed to millennials’ need for private housing and the unchanged repo rate at 4%.
However, individuals looking for a home loan in Hyderabad first should know how to apply for this credit facility.
Steps to apply for a home loan in Hyderabad
The application for a home loan in Hyderabad varies from lender to lender; however, some basic procedures remain the same. Moreover, individuals can apply online or offline at their convenience. Following are the steps to apply for a home loan in Hyderabad:
Step 1: Visit the website of your preferred lender and select home loan from the product tab.
Step 2: On the redirected page, fill in the application form with essential details, such as name, employment status, property details, etc.
Step 3: Submit it online and attach the scanned copies of the documents.
Step 4: Afterwards, the loan manager will initiate the further process.
Potential borrowers also have the flexibility to apply for a home loan application offline. All they need to do is send an SMS to the lending institution and wait for the representative to revert.
Besides knowing the application procedure, it is essential to check a few pointers and make an informed decision.
What are the factors to consider before availing a home loan in Hyderabad?
Irrespective of the loan quantum, individuals need to be careful of certain things before committing to a long-term credit facility, such as a home loan. One must keep the following pointers in mind:
- Eligibility criteria
The home loan eligibility criteria are one of the primary factors that individuals need to take into consideration. It’s different for both salaried and self-employed individuals:
- Applicants must be Indian residents.
- The age range should be between 23 to 62 years.
- Must have work experience of 3 years.
- Should have a steady income flow.
- Individuals must be aged between 25 and 70 years.
- Must have a business vintage of more than 5 years.
It is recommended that applicants maintain a CIBIL score of 750+ for easy approval of home loans in Hyderabad.
A potential borrower must assess the tenor as it impacts the repayment structure. Opting for a longer tenor will reduce the EMIs but increase the interest outgo. Comparatively, a shorter tenor will help save a substantial amount on the overall loan.
One can use a home loan EMI calculator available online to compute monthly instalments payable and opt for a tenor per suitability.
- LTV ratio
The home loan amount depends on the market value of the property. Usually, lenders offer an LTV of 70-80%, depending on the type of property, age, location, etc. Borrowers can also choose to pay a higher amount as a down payment.
- Interest rate
Due to its secured nature, the home loan interest rate is affordable. However, one must compare different lenders and their interest rates to make an informed decision.
Moreover, financial institutions provide pre-approved offers, which help simplify and accelerate a lending process.
These offers are provided on various financial products like home loans, loans against property, and more. Borrowers can check their pre-approved offers by providing a few details, such as their names and contact numbers.
Also, it is equally important to calculate home loan eligibility and check for oneself whether one is meeting the eligibility parameters set by the financial institution.
While applying for a home loan in Hyderabad, one must keep the above pointers in mind to ensure a hassle-free borrowing experience.
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