A checklist to keep in mind before taking loan for investing with real estate company in Mumbai

by Shauns Anderson Sales & Marketing

Home loans come with a number of attractive schemes. Some of them are so tempting that people just wish to apply and move into a new home on a whim. But under these fancy jargons and ads, lies a whole new set complications and technicalities that one needs to understand. With a home loan, you can easily get 2 BHK flats in Mumbai on best rates.

Taking a loan sounds attractive but it is risky on so many levels. A small mistake can get you in trouble and shatter your dreams of owning a residential space.

Here are some pointers to keep in mind before you apply for a home loan.

Home loans have lower interest rates than personal loans

Unlike personal loans, the interest rate on home loan is much less and hence proves to be wiser choice. Because of this, purchasing properties with loan or EMI is very popular. The range of the interest rate on home loan is between 11.5-15% per annum. This interest rate varies between 1-9 years and it can be extended up to 15 years. Compared to this, the personal loan is only valid for 5 years in most of the scenarios.

Get an understanding on cash flow

Before you take a home loan, you should learn everything about cash flow. A steady cash flow is the most important factor as it helps ease the repayment capacity. If your cash flow is not steady or lower than what you need to pay in monthly interest, then the loan against property is not suggested. It can harm your credit score and even prompt banks to take an action in future.

Research on loan schemes

Every bank and investment company presents attractive schemes to attract customers for loans. This proves very helpful as there is some discount or cashback included in the long run. Once you are through the websites of many banks, you’ll understand the scheme which is better.

Apart from loans, every real estate company in Mumbai offers some special offer through EMI. You should research about the feasibility of mixing the two schemes and how much it will help you in the long run.