Here’s how to pick a Home Loan that suits you

Here’s how to pick a Home Loan that suits you

07 December, 2022

Purchasing your own home is a significant milestone and a dream come true. It allows you to create a space that reflects your sensibilities and suits your needs. Today, you can apply for a Home Loan and avail of the financial assistance needed to buy or construct your own home. But how to select a Home Loan that aligns with your needs and capabilities? Continue reading to find out.

How to choose a Home Loan?

While choosing the correct Home Loan for you, you have to consider the following loan terms:

  • Loan amount:

    While applying for a Home Loan, you must consider the required loan amount. If you already have a property in mind, it becomes easier to determine the amount you need to borrow. However, lenders place a cap on the maximum amount you can borrow. This limit is decided based on the real estate value or your income level. Also, before extending any amount to you, the lender will check your repayment capacity. A lender will consider your cash flow, pending liabilities, credit score etc., to gauge your repayment capability. Thus, opt for a Home Loan that offers the kind of loan amount you require and can get easily.

  • Rate of interest:

    When you take a Home Loan, you have to repay the principal amount along with interest as per the rate levied by the lender. The interest and principal payments are factored in your Equated Monthly Instalments (EMI). You might also have the option of choosing between lenders offering a fixed rate (same throughout the tenure) and a floating rate (differs with market fluctuations). Thus, you must pay attention to the interest charged by whichever bank or financial institution you consider. Ideally, you should aim for Home Loans offered at lower interest rates to manage repayment more easily.

  • EMI:

    Another crucial factor that you must think of while deciding upon a Home Loan is the EMI payable every month. As far as how to choose the correct Home Loan EMI is concerned, you need to consider your financial capability. You should only opt for an EMI amount that you can manage to pay each month. Accordingly, you can tweak the other loan terms, like the tenure or the amount borrowed. You can use a Home Loan EMI calculator to do the math before you pick a Home Loan. It is available online for free. Once you plug in the details required, you will get accurate figures regarding the monthly EMI within seconds.

  • Tenure:

    The tenure of your Home Loan also plays a significant role in how your repayment process goes. Since it is the window during which you have to repay the borrowed amount with interest, you must be careful about choosing a tenure. But how to decide on a home loan tenure that suits you? You can go for a Home Loan with a short tenure. You will have to pay higher EMIs each month but less interest overall. On the other hand, if you go with a longer tenure, your monthly EMIs will be comparatively lower, but the overall interest you pay will increase. Thus, you can choose a tenure that fits in with your financial plan and repayment capacity.

Remember to take a look at the processing charges and other terms and conditions before choosing a Home Loan.

If you are looking for a Home Loan with attractive interest rates and flexible tenures, HDFC Bank has you covered. The HDFC Bank Home Loan allows you to seek a high-value loan amount for the purchase, construction, repair, or renovation of your dream home. HDFC Bank also offers financing and schemes for rural areas and agriculturists, respectively. With easy EMI repayment, balance transfer facilities, and top-up options, the HDFC Bank Home Loan will help you create your dream home.

To avail more information about Home Loan procedure, visit the page here.

Click here to apply today!

​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Home Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.

Looking to apply for a Home Loan? Click here

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