The 2nd wealthiest city, Delhi, encompasses New Delhi, which is the capital of India. Officially known as the Delhi NCR, it has the second-highest GDP per capital in India. Such factors make Delhi among the largest commercial centers in India.
According to the reports, the whole territory’s population was around 16.8 million, making it one of the most populated regions in the world. Unsurprisingly, Delhi is known for its limited housing. Hence, availing a home loan in Delhi may become a necessity despite substantial savings.
Delhi is the 9th fastest growing housing market in India. To afford a residence in a wealthy city like Delhi, home loans are a pre-requisite. Thus, many financial institutions offer financial solutions in the form of home loans to help individuals purchase their ideal home. Know how to best apply for a home loan online in Delhi and await approval.
How to increase the chances of a home loan approval in Delhi?
Choosing the most suitable loan terms from a lender can be tricky. Before applying for a home loan in Delhi it is necessary to know about the types of interest rates applicable to these home loans.
Home loan Interest Rates-
- Fixed floating interest rates – A fixed-rate of interest is a kind of home loan interest that remains unchanged despite revisions of market rates.
- Floating interest rates – A floating rate of interest is also known as the variable rate of interest. These interest rates vary as per market or benchmark rates.
With a clear idea about the distinguishing aspects of various home loans, one can easily become qualified to avail a home loan in Delhi.
Factors to consider for approval before applying for a home loan-
- Amount of the loan – The loan amount you can be eligible to avail is determined by the lender based on how well you meet the eligibility criteria. It is always advisable to apply for a home loan amount which is lower than your eligible loan amount.
- Credit score – A credit score is a 3-digit numerical representation of an individual’s financial history and creditworthiness. It is vital for a borrower to know how credit score determines home loan EMIs.
- FOIR – It is a parameter that lenders use to determine a borrower’s repayment capability. FOIR or fixed obligations to income ratio accounts for the obligations a borrower is supposed to meet every month against his/her income. Keeping a lower FOIR can help avail a home loan at negotiable interest rates or shorter tenor to reduce the total cost of the loan.
- Eligibility criteria and documents – Usually, the required documents are almost the same across all lenders other than certain variations. To avail a home loan in Delhi, documents required include –
- The individual has to be a resident of India.
- The age should be between 23-62 years.
- The applicant must have a steady job with a minimum experience of 3 years.
- The minimum monthly income should be Rs.30,000.
- An address proof.
- ID proof like Voter’s Card, Aadhaar Card.
- KYC documents.
- Bank account statements of the previous 6 months.
- Form 16 or last salary slip.
Keep these pointers in mind when applying for a home loan in Delhi. Refer to leading lenders for the most borrower-friendly features as well as attractive home loan rates. Maintain a high CIBIL score, low FOIR, and try to make the highest possible down payment to avail the least amount of loan for your dream house. Plan your finances to close your home loan effectively.