How to Get a Home Loan in Maduraiby Arwind Sharma Finance Advisor
A relative boom in real estate was seen in Madurai which is also known as the temple of South India. Due to the floods in Chennai, people preferred the nearest location which is Madurai. As Chennai converted out of reach due to it becoming expensive, IT industries were attracted to Madurai as it has a high literacy rate.
In case, you are planning to move to Madurai; you should apply for a Home Loan in Madurai. Instant Home Loan in Madurai is available from various lenders. You must have your documents checklist ready. You also have the ability to apply for a Home Loan online in Madurai.
Home Loans are usually taken when one wants to purchase his/her own home and live independently from their family, or when they are shifting and want to settle in a different city than their current residence. A Home Loan repayment period is usually 15 to 20 years. Hence, if you take a Home Loan, then you can easily manage your expenses and repay the same in the timeframe. You can apply for a Home Loan to a bank or a Non-Banking Financial Company (NBFC). Moreover, your lender will provide a Home Loan EMI (Equated Monthly Instalment) calculator on his website. You can then choose your loan amount and tenor. The rate of your loan is fixed. However, different lenders will have different rates of interest.
There are certain factors that you should consider before applying for a Home Loan. Deductions made on your annual income to pay off your EMI (Equated Monthly Instalment) is the front-end ratio or the EMI to income ratio. Payments included in this ratio is for taxes, principal, interest, and insurance. Your financial institution is not entitled to give you 100% of the loan amount. Hence, you should have at least 20% of the loan in your account. This 20% will be your down payment.
Hence, your financial institution will give you 80% of the total loan amount and the rest 20% will be paid by you. Once you have purchased the apartment, you need to cater to your family needs and also look after household expenses as well as buy household appliances. Credit card reports and child support payments are deducted from the back-end ratio. Back-End ratio is calculated when estimated EMI is divided by monthly income. It is also known as the debt to income ratio.
There are several eligibility criteria for Home Loan, you need to fulfill them to avoid any rejection. You can apply for a Home Loan if you are between the ages of 25 to 58 years. You need to be an Indian citizen. You should be a salaried employee and have a minimum work experience of 3 years. The minimum loan amount you can apply for is 3 lakhs, and maximum loan amount is 10 crores.
Hence, if you are living in a rented apartment in Madurai and want to buy your own property, it is advisable that you apply for a Home Loan. A Home Loan will help you purchase the home you always wanted. However, you have to ensure that you plan your expenses well so that you can pay off your Home Loan as well as fulfill other needs.
Created on Sep 29th 2017 01:20. Viewed 615 times.