Are you lacking in funds to buy a dream home in Bangalore, the IT capital of India? If that’s the case, you need to secure a housing loan in Bangalore to make your dream come true. With a good home loan, you can buy or build your dream house without worrying too much about finances. In this article, we will explain why you should get a house loan in Bangalore. We will also discuss the different types of home loans and the documents you need to submit a successful loan application. Let’s go!
Why Should You Get a Home Loan in Bangalore?
Bangalore is known as the Silicon Valley of India, and the city is progressing technologically and culturally with every passing year. It has brilliant weather and a friendly yet vibrant mix of cultures, which makes it one of the best cities in India to live in. Here’s a list of reasons you should get a home loan in Bangalore and buy your dream home in this city:
- Low-interest rates: Bangalore is a hub of many financial institutions that are looking to attract customers with many attractive offers and discounts. Thanks to this, you can find a mortgage loan for interest rates as low as 7.65% per annum in this city if you have a good credit score.
- Multi-purpose Loans: As this city is home to many banks and financial institutions, you can find different kinds of home loans for multiple purposes. Whether you’re looking to buy a new home or want to renovate your house, you can easily find it in Bangalore.
- Easy eligibility requirements: Do you want to secure a home loan but are not sure if you can meet the eligibility criteria? Don’t worry. Even if you have a credit score slightly lower than 750, you can still find a good Bangalore housing loan. However, you might have to pay slightly higher interest rates.
- Easy EMIs: In this city, you can easily get a house loan with low-interest rates and longer tenures. As a result, you can make the repayments with a lower instalment amount every month. This makes paying EMIs a lot easier without devouring a large portion of your monthly income.
Types of Home Loans Available in Bangalore:
Depending on your specific needs, you can get different types of home loans. Here’s a list of four different types of best home loans in Bangalore.
1) Home Loans for Residential Property Purchase:
A residential property home loan is a type of house loan which is often used to buy a new apartment or a complete house previously owned by someone else. For this kind of loan, banks and other financial institutions usually fork out up to 85% of the total market value of the property you want to buy. Meanwhile, you need to pay the rest of the funds from your pocket. It comes with floating and fixed interest rate options.
2) Home Construction Loan:
If you’re looking to get a house loan to construct your own dream home, you should get a construction loan. To get this kind of loan, you need to own the land where you are planning to build the home. The lender will usually sanction up to 90% of the total construction cost. Talk to the lenders today to get low home loan interest rates in Bangalore and start building your house.
3) Housing Loans for Residential Plot Purchase:
You can secure funds by getting a residential plot purchase home loan to buy vacant land, which you are planning to use for constructing your house. Please note that the land or plot you’re planning to buy cannot be an agricultural field. For this kind of land loan, banks often offer up to 90% of the total market value of the plot.
4) House Improvement Loans:
Do you want to borrow money to renovate your already existing house? In this case, you should get a house improvement loan. With this loan, you can get up to Rs. 10 lakhs to renovate your house in Bangalore. You can use the borrowed money for paint work, plumbing, interior decoration, exterior modifications, flooring jobs, and more renovation-related work.
Eligibility Criteria to Secure a Housing Loan:
If you want to secure the best home loan in Bangalore, you need to meet some basic eligibility requirements. Here’s a list of criteria you need to meet:
- Your age must be between 21 and 65 years. Some lenders may limit the maximum age to 58 years.
- You must be either a salaried or a self-employed individual.
- A salaried person must have at least two years of work experience, while the self-employed person needs to be in his/her current business for at least three years.
- Most lenders need your credit score to be at least 750.
What Documents Are Required to Get a Housing Loan in Bangalore?
Do you want to get the best home loan rates in Bangalore? If you do, you need to collect a few important documents, which you need to submit along with your house loan application. Let’s take a look at the documents you need to apply for a home loan properly.
- Proof of Age: Birth certificate/ Passport/ PAN card/ Driving license
- Address Proof: Bank statement with your address on it/ Utility bills/ Aadhaar card/ Passport
- Identity Proof: Voter ID card/ Passport/ Aadhaar card/ Driving license/ Ration card
- Proof of Income:
- For Salaried Professionals: Last six months’ salary slip/ Bank statement (salary account) of the last six months.
- For Self-employed Individuals: Income tax returns of the last three years/ Bank account statement (current account) of the last six months.
- Processing fee check
- Property documents
Bangalore is a great city, and buying a home in this hub of information technology is a dream of many Indians. And with a housing loan in Bangalore, this dream can finally become a reality. Learn about the types of home loans available in this garden city of India. Talk to different lenders to figure out the exact eligibility criteria and the documents required to apply for a mortgage. Once you sort everything out, apply for a home loan and fulfil your dream.