Outlook Money
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.
Pre-approved loans also have fewer documentation requirements and offer better project credentials.
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.
A co-applicant, like a spouse or parent, can help increase the loan limits with combined incomes.
Based on borrower's eligibility, home loans in India can have a tenure of up to 30 years.
Longer term for loans reduce the EMI burden but can increase the total interest outgo.
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.
A credit score above 750 can increase one's chances of home loan approval, and also offer more favourable rates of interest.