Planning to Buy a House in Delhi? Here’s What You Need to Know
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Delhi the capital of India is full of beautiful Infrastructure. With Commonwealth games in 2012 which have given the opportunity to Delhi to develop the infrastructure on a huge level. Now Delhi is rapidly altering its infrastructural appearance in terms of welcoming foreign game events, tourists, and multinational companies to make business.
Many builders in Delhi have initiated several plans in building an affordable living for the people in Delhi. With this construction, people will have their first homes or house for investment etc. Many construction companies have launched residential projects, currently under construction, will be available by 2020.
After the last budget announces by the financial ministry in India, many construction companies are advised to create favorable eco-system for affordable housing for the people to live in.
Housing decisions can be difficult to take, especially for the first time buyers. There can be many questions hitting your mind when you plan on owning a property. Before you take the decision of buying a property make sure to plan your budget correctly. You also need to check your savings before planning the loan amount that you need from the bank.
After effects of demonetization have helped bank raise a lot of money in their CASA (current account and saving account) of their branches. Hence, these banks always look for such potential borrowers who have a good rate of credibility score. Your monthly salary should decide what amount should be given to the borrower, and also the savings matters. You need 20% of the property value as down payment against your Home Loan.
Most banks lend you 85% of the property value as a loan on a given rate of interest. Easy monthly installments are scheduled for payment till the end of your tenure, on a specific rate of interest that you can be paid easily by the borrower. The bank’s amortization schedule is calculated in order to provide the correct amount that should not be more than 40% of your monthly salary.
Financial institutes and lenders offer Home Loans for various purposes which include:
- Constructing a house
- Buying a housing property
- Buying a residential plot
- Finance for repair/renovation of a home
A loan taken against a property you already own is known as a mortgage loan and these types of loans are usually known as a loan against property. In Delhi, a bank usually finances 85% of the market value of the property in the city.
It is also possible to apply for a Home Loan online and get a quote from the bank or other financial institutions.
Every bank has their own documentation process specified on their website, with loan approval depending on various financial criteria. Here is the documents checklist to apply for a Home Loan:
Employment record, salary slips, work experience details, and TDS certificate are some of the things a bank looks into in order to assess if a person is eligible for the loan. Proof of business address may be required for non-salaried individuals.
The minimum salary required to apply for a Home Loan in Delhi is around INR 30,000 with the minimum value of the property as INR 30 Lakhs (This amount varies for different banks).
Bank Account Statements
Some banks may require the loan
Applicant’s bank account statement for the last 6 months or more
Identity/ Address Proof
Documents required would include one or more of the following Voter’s ID card / Driving license / Aadhaar card / PAN card.