Borrowing Home Loan: Top Factors To Consider

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Pre-Approved Loans

These are the types of loans that can help in building a clear budget, offer better negotiations, and in some cases even give access to lender-approved properties.

Home loan Pre-Payment

Documentation

Pre-approved loans also have fewer documentation requirements and offer better project credentials.

Documentation

How Much Can Be Borrowed?

According to RBI norms, the loan-to-value (LTV) allows most borrowers to access between 75 per cent and 90 per cent of the property value as a loan.

Loan amount

Co-applicant

A co-applicant, like a spouse or parent, can help increase the loan limits with combined incomes.

Tenure Choices

Based on borrower's eligibility, home loans in India can have a tenure of up to 30 years.

Tenure Choices

EMI

Longer term for loans reduce the EMI burden but can increase the total interest outgo.

EMI

Tax Breaks

Borrowers can claim up to Rs 2 lakh annually in deductions on interest paid for self-occupied homes, under Section 24(b) of the Income-tax Act, 1961.

Tax Breaks

Credit Scores

A credit score above 750 can increase one's chances of home loan approval, and also offer more favourable rates of interest.

Credit Scores

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