Mumbai is one of the most popular cities in India; due to having headquarters of various MNCs and all production houses, it is often called as the land of dreams. The city is surrounded by beaches from all sides which are known as ‘Chowpati’ and is famous for the iconic beach called as ‘Marine Drive’. It is also called as the house of the Indian film industry ‘Bollywood’ and is also the house of many prominent businessmen (esp. Anil and Mukesh Ambani). With all this glamour and excitement around, anyone will surely want to live in Mumbai.
Mumbai has a strong financial presence in the market and is considered to be one of the major metropolitan cities of the country. Its financial importance is one of the major reasons that the city has high housing rates. The property rates in Mumbai start from Lakh and can reach up to Crore of rupees, due to which people often prefer to live in a rented house. It is not that hard to buy a house in Mumbai, whereas, the easiest way that you can use to buy a house in Mumbai is by availing a housing loan.
There are many banks and Non-Banking Financial Companies (NBFCs) that offer Home Loans in Mumbai at a considerable interest rate. The loan approval process for a Home Loan is very stringent, and if there is any fault in your application, the lender will reject your loan instantly.
To make sure that your loan application does not get rejected, here are the things you need to keep in mind when applying for a Home Loan in Mumbai:
- Check your Home Loan eligibility: The terms of the financial institutions for Home Loan lending vary from city to city. It means that the lenders have different eligibility requirements in different cities. The eligibility criterion is made up of parameters that determine the repayment capacity of the applicant. It consists of credit score, job history and income. You need to check your Home Loan eligibility before applying for a loan to avoid your loan application from getting rejected.
- Interest rates: The Interest rate is an important part of the Home Loans, even though it is calculated on a yearly basis it can have a major impact on your final repayment amount. The higher the interest rate, higher the interest amount to be paid for the Home Loans. It is advisable that you apply for a Home Loan that has a low-interest rate to save yourself from paying more than expected. The interest rates on Home Loans in Mumbai ranges from 8.35 percent.
- Read the fine print: Loan applicants often make a lot of mistakes when applying for a housing loan (mainly first-timers). The worst mistake that they do when applying for a loan is neglected the things written in fine print. Loan application forms sometimes have vital terms and conditions written in fine print. Due to the size of the print, the applicants do not pay attention to the information which leads to grave consequences during loan repayment. You need to get all your doubts clarified from your lender when applying for a housing loan.
Owning a house in Mumbai can be more like an achievement due to the housing rates. If you are planning to buy a house with the help of a Home Loan, you can refer the above-mentioned point to reduce the chance of Home Loan rejection.