Pooja Agrawal
Belmac Riverside Pooja Agrawal

A home loan is a sum that is given to an individual helping him/her to purchase a home. It is practically inconceivable for somebody to purchase a home without applying for a home loan. In addition, the given economic situation doesn’t give the necessary circumstance for purchasing a home without a home advance.

It is especially important to take a home loan since you can’t go through all the well-deserved cash immediately so as to purchase your ideal home. You will at present miss the mark concerning reserves even if you attempt to spare your income from the very beginning of your vocation. This progression is for all intents and purposes unimaginable as you would require cash for your essential costs, future arranging, and for the unsure crises to come.

So as to do the trick for your necessities just as purchasing your ideal home, you would need to take a home loan. A home loan will assist with diminishing the assessment liabilities alongside making an advantage. In any case, continuing ahead with a home loan isn’t as simple as it appears. If not taken care of accurately, it can make issues for you later on. You should explore the market altogether as there are numerous choices to browse. Searching for the ideal home can limit your decisions to an extreme, and you may ignore strong contenders in the expectations that something much better will go along.

Here are some points you should need to consider while applying for a home loan:

Eligibility for Government Housing Schemes: You must know where you fall among the categories entitled by the government under PMAY (Pradhan Mantri Awas Yojna). You must be among one of the following classifications in order to be eligible under PMAY:

  • Economically Weaker Section (EWS): People who earn an annual household income less than Rs.3 lakh come under the EWS category. However, an applicant claiming to be from EWS needs to provide relevant proof to the government to ascertain their claims.
  • Light Income Group (LIG): People that fall under the LIG category usually have an annual household income ranging between Rs.3 lakh to 6 lakh. Again, to be eligible for consideration, they need to provide sufficient proof of their economic standing
  • Medium Income Group (MIG1): Those who earn an annual household income below Rs.12 lakh fall under the MIG1 category. These people can avail loans of up to Rs.9 lakh for the construction of a residence.
  • Medium Income Group (MIG2): Individuals earning an annual household income between Rs.12 to Rs.18 lakh will fall under MIG2 of the PMAY scheme. These people can avail loans of up to Rs.12 lakh.
  • Minorities: People hailing from minority groups like SC/ST/OBC will fall under minorities. To be considered under the PMAY scheme, these people need to meet to provide relevant caste and income certificates.
  • Women: Women belonging to EWS/LIG categories will be considered if they apply under the PMAY scheme.

Know your repayment capacity: Decide on a home loan amount that you can repay without affecting your basic expenses. You must know your repayment capacity even though the bank may offer you more amount as a home loan. Ensure that your Equated Monthly Installment or EMIs shouldn’t be more than 40% of your take away income. You will still need money for your other financial goals in life.

Property Value: Financial evaluation should include the value of the property. You must know the sales price of your desired property in order to apply for the home loan. Usually, lenders provide up to 80–90% of the property price as a home loan, of course, depending on the price. For a home worth up to 30 lakhs INR, you are eligible for up to 90% of the price. As the price of the property increases the home loan percentage decreases. The maximum home loan that you can get is up to 75% of the property price. The important part is that you must pay the remaining as the down payment from your own pocket. Hence, you must plan accordingly.

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