Planning for a Home Loan in Surat? What You Need to Keep in Mind

Summary – Home Loan in Surat is easy to avail, manage and repay if you consider some points before applying for it. Read on to know some crucial factors!

Surat is one of the major cities of Gujarat along with Ahmedabad and Rajkot. With a history of textile, cotton, and related industries making Surat known everywhere, it is also a place to settle down.

Yes, if you are one of the people who would like to make Surat their hometown, and want to purchase a home, you can count on the Home Loan in Surat to assist you.

Many banks and non-banking finance companies (NBFCs) offer higher loan amount between Rs.20 lakh and Rs.10 crore at lower Home Loan interest rates.

Nonetheless, before you jump to your mobile or desktop/laptop to apply for a Home Loan in Surat, you should consider some factors. Considering some elements before availing a loan will help you not only qualify for it but even grab it at a good rate.

1. Have you Maintained a Robust Credit Score?

Your Credit Score or the CIBIL Score is the first thing that your lender will analyze while approving your Home Loan application in Surat or elsewhere. Your CIBIL Score proves your creditworthiness which denotes if you are good to manage and repay the loan. A Credit Score of 700+ out of 900 is considered ideal by lenders to approve a loan. If your CIBIL Score is higher, you can also negotiate with your lender to provide a Home Loan at a lower rate. If you don’t have a strong Credit Score, you can improve it by paying your existing loan EMIs on time and having a consistent employment. Yes, maintaining a clean repayment and steady employment history also helps to increase your Home Loan eligibility.

2. Always Know How Much is Too Much

Knowing how much is too much denotes to your affordability and repayment capacity for a Home Loan. Yes, if your current income qualifies you for an amount of Rs.20 lakh as a housing loan and if you apply for Rs.30 lakh, you won’t get the approval. Also, even if you get the approval somehow, repaying it would mean disturbing your monthly outflows. Thus, always check how much you can borrow with the help of the Home Loan eligibility calculator to be on the safe side.

3. Consider Home Loan Interest Rates

Lenders may offer you two types of Home Loan interest rates – fixed and floating on a Home Loan. A fixed rate means paying a fixed Home Loan EMI and it helps you control the loan as you are well aware of how much to pay each month. On the other hand, opting for a floating interest rate means paying flexible EMIs as it is decided as per the market conditions. You may have to pay smaller or higher than normal EMIs which means being unable to take control of your Home Loan and not being aware of how much to keep aside monthly.

4. Be Sure of the Hidden Charges

When you service a Home Loan, you may feel like making some pre-payments or even foreclose it before its scheduled tenor, so ensure that there are no charges for these. Most of the leading online lenders do not charge any part-prepayment, prepayment, or foreclosure charges from Home Loan customers anymore. Thus, check the charges beforehand from your respective creditors.

The Bottom Line

Another thing that you should consider is the tenor of the loan. Selecting a shorter tenor will help you pay off the loan quickly, but you will pay a major part of your income as EMIs which may disturb your monthly outgoes.

On the other hand, opting for a longer tenor will mean paying smaller EMIs, but having a loan on your head for long and also paying compounding interest rate.

Thus, before you apply for a Home Loan in Surat, ensure to consider the discussed points!