If you dream of owning a house and are not sure where to buy one, consider Pune, the Queen of the Deccan. Pune is in the Western part of Maharashtra and the second largest city in the state after Mumbai. It is acclaimed for its rich cultural history, a thriving intellectual milieu engaged in the arts and theatre, and the abundance of educational institutes. In order to get a house in Pune, you, most likely, will need to take a home loan there. In the paragraphs ahead, we will help you find out how you can apply for home loan in Pune.
First, let us list out the merits of the city of Pune and understand why it is a great choice to live there:
- Pleasant weather—compared to Mumbai, Pune has a pleasant weather throughout the year. It is especially beautiful in the rains. The summers are cool and winters are colder than Mumbai, which has a maritime hot and humid climate throughout the year. Environmentally, it is in a better state than the metros.
- Weekend getaways—Pune is in close proximity to many tourist locations, such as Lonavala, Mahabaleshwar, Kashid, Divegar, and even Goa.
- Affordability—Pune, as a city, offers an urban lifestyle at an affordable rate. Compared to Mumbai, which has some of the world’s highest realty rates, Pune is at least 30%-50% more affordable, and convenient. It has all kinds of facilities and infrastructure available to a metro city along with its pleasant weather and weekend getaways.
- Socio-cultural hub—Pune has a thriving intellectual circuit engaged in theatre, arts, dance, culinary delights, cinema, and so on. There are enough opportunities to participate in these every now and then and enjoy the urban life while also being culturally connected.
- Excellent educational opportunities—Pune has some of the best educational institutes in the country, right from school to masters and beyond. On one hand, there are best ranked management institutes and on the other hand, is the renowned film institute.
- Job opportunities and proximity to Mumbai—Pune itself has offices of many of the top MNCs, especially those in the automobile and manufacturing sectors. Moreover, it is just a three-hour drive from Mumbai. So, you have Mumbai easily accessible and yet without having to deal with its traffic, noise, and long commutes daily.
Now having familiarised ourselves with Pune, let us find out how you can apply for a home loan there:
- Shortlist properties you are interested in basis your needs, desires, budget, and so on. To ascertain budget (loan eligibility beyond your down payment), you can have a preliminary conversation with a few banks/lenders and/or use an online home loan eligibility calculator. Now, make a choice of property.
- Find out the trending home loan interest rate in the market basis the most recent quarterly monetary policy announced.
- Shortlist your lenders/banks to apply to for a home loan. The factors influencing this decision are ease of application, processing time, customer friendliness, hidden charges, market reputation, processing fees involved, interest rates offered to other customers, financial stability in the recent times, location of branch, and so on.
- Apply for a home loan with a bank/lender after ascertaining the quantum of sum you can pay from your own savings. Banks and home loan lenders will anyway finance up to 85% of the property price only. You are expected to bear the remaining 15%.
For a housing loan in India and to know your home loan eligibility criteria, the bank/lender will evaluate your application and the documents required for home loan basis the parameters stated ahead, which you are recommended to keep in mind and improve before applying for a home loan (and to minimise the chances of the application getting rejected):
- Your CIBIL score—this is your credit score impacted by your credit history, payment and non-payment records, defaults, etc. This score gets built over a period of time and a single default in payment of EMI on an existing loan or credit card dues can result in a score lower than the desirable 700 for a home loan.
- Your spread of investments into risky and non-risky assets. The riskier your investments, the higher will be your home loan interest rate and lower will be the disbursed amount.
- Your personal income levels, type of occupation (MNC/Government job, Self-employed, or others), historic trend of income and projections basis that, all of these factors impact your home loan application.
- Your age at the time of the application matters—the younger you are, the better it is for your application.
- The reputation of the property and its builders which you have chosen also affects your loan application.
- Once the bank/lender completes their verification to their satisfaction, your loan application is approved.
So, plan out your finances towards your own house in Pune and then work towards your home loan in Pune keeping in mind the above points.