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Property Financing in India

Property Financing in India

Property financing in India is an important aspect of real estate transactions as most people seek loans to buy their houses. It is not always possible to have huge savings to buy home from your saved income. Loans and property financing offer opportunities in such situation to help you own your dream home. Home loans are generally available for either buying a house, apartment/flat, construction of house, renovation, or for buying a plot of land. Most banks offer home loans in India under different categories. However, it is crucial to understand all the different factors associated with a loan, including the loan tenure, interest rates, the reputation of the bank or lender, and how the loan might affect the credit score.

If you are seeking property financing in India, you must first learn about how much loan you are eligible for. Most lenders in India would require that you make 10-20% of the property's purchase price as down payment. However, you do not have to opt for the maximum 80-90% of the purchase price as home loan. You can opt for a lesser amount to be borrowed. Do remember, that the total purchase price includes the registration and stamp duty charges. At HousingNinja, we always advice our Users to only borrow the amount that you can repay. Also, keep the tenure of the loan as short as possible. Taking a loan is negative compounding, which means longer the tenure of the loan, the higher is the interest amount that you will have to pay to the bank.

Overall, be aware of credit scores and how property financing in India by taking a home loan can affect your credit score. You can check your credit score from the CIBIL website. Some of the factors that affect your credit score negatively are: missed EMIs, lack of loan history, unused credit cards, too many loan enquiries, too many loans, negotiated settlement. You must keep track of your credit score when you apply for a home loan, as the new loan will impact your current credit score. At HousingNinja, our Partner Ninjas provide the best advice in property loan and home loan policies. Our partners help you with the fine print of the home loan policies and protect your rights. You can Sign Up now and fill out the property financing form to get in touch with our dedicated Partners.

If you are seeking general answers, you can also ask free questions in our Real Estate Forum. It is advised that you shop around to learn about the different property loan options available in the market. If you are looking to learn more about Property Financing, check out our latest Blog section. We are constantly curating the best information and articles from multiple real estate professionals all across India.