Planning to Buy a New House in Hyderabad? Keep This Checklist to Get a Home Loan

Hyderabad, the capital of Andhra Pradesh and the largest city in Telangana, is one of the major metropolitan hubs in the Deccan region. With a bustling economy of almost Rs. 5,315 Crore, Hyderabad offers one of the most diverse employment sectors in the region, housing almost 9.7 million people in total.

Unsurprisingly, the real estate market of Hyderabad has grown steadily over the last decade to keep up with the growing demand, clocking almost 10% rise in property acquisition between 2018 and 2019.

The housing sector in Hyderabad

A vast majority of the residents of Hyderabad lives in urbanised areas. Skyscrapers and pre-fabricated residents account for 52% of the total build-up of the city. These properties are in high demand and often cost significantly more, as a large number of people seek accommodation near the downtown region. To keep up with the increasing cost, prospective home buyers often prefer to avail a home loan in Hyderabad to pay for the property without straining their finances.

Availing a loan in Hyderabad –

There are several financial institutions that offer home loans to eligible applicants in Hyderabad. These include both Government-backed, as well as non-banking financial institutions. These credits come with attractive home loan offers, as well as other benefits like flexible repayment tenor, affordable rate of interest, etc.

However, a borrower should keep a few things in mind before applying for such a credit to ensure they gain the maximum benefit from the advance. It is necessary to understand the policies and notion of these types of secured lending. One can even make a checklist before applying for the credit to ensure the application process stays hassle-free and takes the least time.

Let’s take a look at some of the important factors of a checklist.

• Loan amount –

One of the first things an applicant should determine is the amount of credit he or she needs to borrow from a financial institution. It should be in accordance with the cost of the property; one can also include ancillary costs like registration, legal fees, etc.

It is necessary to carefully calculate the loan amount, as it is one of the factors that impact the housing loan interest rate. Opting for an excessively large amount can strain one’s budget during repayment.

• Eligibility criteria and documentation –

An applicant has to fulfil all the eligibility criteria imposed by a lender to successfully avail a home loan in Hyderabad. These requirements may vary between financial institutions, so it is necessary to do proper market research and select a lender that asks for minimum documentation and easy to meet eligibility criteria.

• Terms and conditions –

There are several other clauses that a borrower should be aware of while applying for an advance. These include –

1. Fixed of floating rate of interest.

2. Processing fees.

3. Tenor.

4. EMIs (determine using online tools like EMI calculator.)

5. Part-prepayment and foreclosure clauses.

6. Fees and charges of late payments.

These are some of the most important clauses in a home loan agreement that borrowers should keep in mind.

Planning to buy a residential property involves several carefully planned steps. Securing finances to procure a home, and repaying it within its pre-determined tenor is an equally important part of the process. The above-mentioned checklist can help borrowers sort through the complicated process with ease.