Claimed to be the fastest developing city in Asia, Aurangabad has grown 4 to 5 times during the year 2009 to 2014. Investment in the city is advisable as it is offering tremendous growth. The property rates are growing at a rapid pace. The property in Aurangabad is quite affordable, however, if you are planning to shift to Aurangabad, you can even check out various Home Loan options.
Many times, you look for a rented place. A rented place is definitely a more viable option, but it also comes with downsides. Some of the downsides are, constantly shifting from one location to another, this also means that you have to look for a new apartment at the end of your agreement. One of the major concerns is that rents often take away major chunk of your salary and at the end of it, you will not gain anything. However, you can change that by applying for a Home Loan.
Banks and Non-Banking Financial Companies (NBFC’s) have made it easy for you to own a home now. Home Loans are becoming popular by the day. Everyone wants to own a house, and if you are looking to buy a house in Aurangabad, you must know what Home Loans are and the procedure of financial institutions. Financial institutions guide their customers through a pre-approved loan process in which they explain the customers about all the details involved in the process. Digitisation has also benefitted both the customer and the lenders as a major chunk of work is done on the internet. All the customer has to do is fill a simple online form which is approved by the financial institution. However, there are certain criteria that you have to keep in mind before you apply for a Home Loan in Aurangabad. And the criteria are:
- Down Payment: A financial institution will not provide you with a 100% down payment because they do not have the entitlement to do so. The maximum loan amount sanctioned to you will be less than 85-90%. However, the maximum loan amount you get is 80% as your lender expects you to pay 15-20% of the loan amount. For example, if you are borrowing INR 30 lakhs for Home Loans you must have INR 4 to 6 lakhs in your bank account to pay your lender.
- Front-End Ratio: Percentage of annual income used to pay off your EMI (Equated Monthly Instalment) is the front end ratio. Interest, principal amount, insurance and taxes are the four fundamental factors that your loan comprises of.
- Back-End Ratio: Also referred to as the debt to income ratio, a percentage of your annual income deducted to repay debts of outstanding loans and credit cards. A back-end ratio of 36% is most favourable.
- Maintenance charges: After you have acquired your Home Loan and purchased your home, it is important to know that you do not forget about other home expenses such as maintenance charges, furniture, and home appliances.
There are a few more factors which you should keep in mind before you apply for a Home Loan which are as follows:
- Applicant of the Home Loan should be an Indian resident
- Age of the applicant should be between 25 to 58 years
- Applicant should have a consistent salary and 3 years of work experience
- Maximum loan amount is INR 10 crores, and minimum loan amount is INR 30 lakhs
Therefore, before applying for a Home Loan, you must consider all these factors.