If you are looking for residential projects in Kolkata and want to know more on financing options, here is a useful read. Buying a home is a significant investment and requires careful consideration of various factors, including financing options such as bank loans and personal loans. The eligibility criteria, interest rates, and repayment options vary depending on the option chosen. There are different ways to finance it. Here are some of the most sought after ways of purchase:
Home Loan: When you purchase a home in one of the residential projects in Kolkata, you will likely opt for a home loan provided by a bank or financial institution. These loans provide a lump sum payment to make the purchase, which you must repay with interest over a fixed period. The amount and interest rate are determined by factors such as your income level, tenure of service and property value. He we discuss some of the eligibility criteria for home loans:
Current age & loan repayment tenure
Your age is an important factor that decides your eligibility. Your chances of getting your home loan approved will be faster if you are younger. You are also likely to get a longer repayment period if you are younger.
Financial profile
The financial institution you are taking the loan from will assess the stability of your income before the loan is approved. This will depend upon the amount you borrow. They will consider important factors such as the tenure of your service, if you are a salaried person or own a business and are self employed.
Credit score
It is important to have a high credit score to get a loan faster. A high credit score means that you have clean repayment records. This puts you in a better position compared to people with low credit scores and your chances of getting your loan approved are higher.
Other financial obligations
Financial institutions and banks often consider other important factors such as current credit card bills, personal loans and car loans before they approve the loan application. They will evaluate your repayment history, assess your loan application trends and your spending patterns. If they do not find it satisfactory, you might face difficulties while getting an approval. However, if you do not have any such liabilities, your loan will be approved in no time.
To apply for a home loan, you will need to provide identity and address proofs, income proof, property documents, and bank statements. Based on these documents, the bank will analyse your creditworthiness.
It is important to note that the rate of interest can vary based on several factors such as the lender, loan amount and loan tenure. You have to compare between the different interest rates offered by different banks before zeroing in on one. The rate of interests are usually fixed or floating. In some cases, you might have to pay for additional charges such as processing fees and prepayment charges.
Personal Loan: When you avail a personal loan, there is no requirement of collaterals. However, taking a personal loan means that you have to pay back the loan amount in a shorter period of time, which can sometimes be troublesome depending on the price of the flat and other factors such as your income and tenure of service. The loan amount and rate of interest will depend on your credit score, income and repayment capacity as evaluated by the financial institution.
Loan Against Property: Loan Against Property (LAP) is a loan tailored for home owners who have a property to mortgage and meet the eligibility criteria of financial institutions. Hence, if you have a property to mortgage and meet the eligibility criteria of the financial institution, LAP can be an appropriate loan option for you. It is a secured loan that takes into account the market value of the property.
When you avail LAP, you give the bank the right to sell your mortgaged property if you fail to repay the loan amount. Hence, it is important to analyse your repayment capacity and associated risks before you avail this loan to buy a flat. The interest rates of LAP are usually lower than the interest rates of personal loans. The repayment tenures offered is also longer. It makes the monthly payments affordable. You must always compare the interest rates and various other terms and conditions offered by different banks and financial institutions before making the decision.
Builder Financing: Builder financing is the term used for situations when the builder provides the loan to make the purchase of the flat. When you choose a builder financing option, it is likely that the rate of interest will be higher than the rates of financial institutions. However, you can avoid the hassles of the tedious bank procedures. Availing a loan from your builder is a comparatively worry-free arrangement. You can make monthly payments to your builder, the same way you would have paid the banks. This repayment amount includes the principal amount and the rate of interest charged by the builder. The builder’s interest rate will usually depend upon the builder’s own cost of borrowing and risk. Additionally, availing a loan from the builder allows more flexibility as the eligibility criteria is not extremely stringent and fewer documents are required. However, before availing a builder’s loan, you should run a thorough check on the builder’s reputation and financial stability. Ensure to review all terms and conditions offered by the builder before signing any financial agreement. This includes the rate of interest, repayment period and penalties for defaulters.
Joint Home Loan: A joint home loan can be availed by two or more individuals. These individuals usually share the loan amount and repayment responsibility. When you take a joint home loan, it is likely that the loan receives approval without much hassle. It can also increase the loan amount. Joint home loans are a popular choice among buyers due to the following few reasons:
The loan amount is higher compared to other loan options. The income amount of the loan applicants are calculated jointly which increases the loan amount.
The chances of your loan being approved are higher as the creditworthiness of both the applicants are considered. For instance, if you avail the loan with your partner and both of you are working, your joint creditworthiness is higher compared to your individual application.
The loan repayment amount is shared equally amongst all applicants. As the loan is availed jointly, so is the repayment. Thus, when one of the applicants is unable to repay the dues, the other applicants can cover their share.
Looking for ongoing residential projects in Kolkata?
If you are looking to invest in ongoing residential projects in Kolkata, explore Ideal Aqua View , Ideal Aurum and Ideal Paradiso. All these projects are situated in the prime locations of the city. They have easy access to different hotspots of the city, popular malls and multiplexes, educational institutes and healthcare centres. For more information on the ongoing residential projects, explore here.
