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If you are applying for a home loan with a woman as a co-applicant, you can enjoy a concessional rate of interest on your loan. The interest rate in such cases are usually around 0.05% (5 basis points) lower than the standard rates.
To avail this benefit, make sure the woman co-applicant must be either the sole owner or a joint owner of the property.
Launched in 2015, Pradhan Mantri Awas Yojana (PMAY) is a Government of India’s initiative that aims to provide affordable housing for certain sections of the society. The scheme targets construction of about 20 million houses at an affordable price by 31 March 2022.
Here are some of the key objectives of this scheme:
You should opt of Pre-EMI if:
Lenders use your CIBIL score as an indicator of how likely you are to repay the loan. The higher the score, the lower the interest rate you pay on your home loans.
Score below 600: A score below 600 generally indicates high risk. With such a score, it may be a little tough to secure a loan. If your score is below 600, it’s best if you try to improve the score before applying for a home loan.
Score between 600 and 749: Although it’s not considered a very good score but it gives you at least a chance to get the loan approved. Some lenders might approve your loan with this score after considering your income, your employment/business, etc.
Score of 750 and above: If your score is 750 or above, you are most likely to get your loan approved. Not only that, you are also most likely to secure the loan at an attractive rate of interest.
Here are some of the key factors that can help you improve your CIBIL score:
Pay your dues on time: You must pay all your dues on time, including your credit card bills as well as other loans you may have. Timely payments indicate your reliability when it comes to loan repayments.
Keep checking your credit report: At times, your score may get hit due to certain errors in your credit report. Keep an eye on the report and if there are any discrepancies, report to the credit bureau for correction.
Optimize the loan tenure: If you are taking a loan, try to choose a longer tenure. This will keep your EMIs low and ensure that you never default on repayments.
Maintain the right mix of loans: To have a right combination of secured and unsecured loans can also help improve your CIBIL score. Make sure you repay all the loans on time. This will help create a good credit history.
Avoid too many loans: You should not take on too many loans at the same time. Having too many loans may indicate high repayment risk. Additionally, if you fail to repay any of the loans, your credit score may get seriously impacted.
There are some hidden charges applicable while opting for a home loan.
As per RBI guidelines, no lender is permitted to offer 100% home financing. You need to make a down payment amounting to 10-20% of the property’s purchase price. Typically, you can obtain up to 80% housing loan financing for your property.
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