Home loan for Godrej Hillside

No. Banks usually keep a 20% margin when providing individuals with a home loan. This means that the lender may agree to provide you with 80% of the property value as a home loan, while you will have to shell out the rest 20% by yourself. In some cases, the lender can agree to provide you with up to 90% of the property value as a home loan.

Home loan is a long term obligation to fulfil. Keep these points in mind: factors affecting eligibility criteria; negotiate the interest rate; check hidden costs while comparing lenders, like processing fees, foreclosure charges, prepayment costs and valuation costs; compare different lenders to get the best home loan at affordable rates; the longer the tenure, the costlier the home loan; choose a floating rate of interest over a fixed interest rate; read all the terms and conditions carefully, like foreclosure terms; and check your credit score, since a low credit score could lead to loan rejection or a higher rate of interest.

Factors that can play a crucial role in home loan rejection: a bad or low credit score, incorrect personal details in the credit report, rejection of the loan by other banks, unstable income, age, the location of the property, and lack of repayment capability.

Credit score: maintain a credit score of 750 and above for a good chance of approval; lenders check it to judge your credibility and repayment history. Insufficient income: lenders look at your monthly income to see if you can repay your EMIs; it is advisable to keep your EMI at no more than 40% of your monthly income and to meet the lender's minimum income and employment requirements. Too many applications in a short span: applying to many lenders signals that you are short of credit and can lead to rejection. Existing loans: if you already have several loans to repay, it is better to apply once you have paid off a few of them to reduce your EMI burden.

Yes. Both the loan principal amount and the interest paid towards loan repayments provide tax benefits under Section 80C and Section 24 of the IT Act respectively.

Bank statements for 3 months, salary slips for 3 months, address proof (Aadhaar card / passport) and identity proof (Aadhaar card / passport / PAN card).

Fixed home loan rates: the rate of interest is fixed throughout the term of repayment of the loan. Floating home loan rates: the rate of interest changes with changes in the bank's base rate.

Yes. Banks usually offer the facility of switching from a higher rate of interest to a lower rate of interest. They may however charge you a one-time fee to do the same.