Kochi is one of the cities in Kerala, which offers the highest scope of employment. There are four special economic zones located within the city itself, employing thousands from all over the country. Thus, the number of individuals looking to settle in this city is also quite high.
If you are among those individuals looking to purchase a house in Kochi, now is a good time to do so. With financial institutions slashing their interest rates, you can easily avail a good offer on a home loan in Kochi with several lenders.
By decoding the home loan process, you can avail this advance more easily:
Step 1 – Applying for the Loan
In recent years, with financial institutions moving their application process online, applying for the loan has become significantly easier. However, before applying, there are a few things you should check.
These are:
- Interest Rate
The Home loan interest rate is the most crucial factor when it comes to choosing your lender. Financial institutions decide their floating interest rates based on the MCLR. So before selecting a lender, you must compare their floating and fixed interest rates offered by various financial institutions and avail the best one for you.
- Eligibility Criteria
The eligibility criteria to avail home loans vary from one lender to another. Following are some of the standard criteria that borrowers have to comply with for the home loan online application process:
- Age limit
- Employment status
- Income
- Work experience
- Business vintage and financial statements for self-employed individuals
You can also avail a home loan eligibility calculator to know if you can apply for the loan.
- Know the down Payment
According to RBI guidelines, no financial institution can provide 100% of a property’s value as a loan to borrowers. Borrowers have to first make a down payment of a certain percentage of the property’s value to avail the advance.
Typically, financial institutions provide around 80% of a property’s value as a home loan, while the rest has to be paid by the borrower beforehand. So, before applying for a home loan in Kochi, check how much down payment you have to make and ensure that you have sufficient funds for the same.
- Calculate the EMI Payable
One of the most important factors you should check before availing a home loan is to calculate the EMIs. To do so, you can use an online home loan EMI calculator from your lender’s website. These online tools are efficient and will give your accurate EMI amount within a matter of seconds.
- Check the Documents Required
Some of the basic documents required to apply for this advance include:
- KYC documents
- Address proof
- Bank statements
- Salary slips, proof of business continuity
These are the few things you should know to avoid any hassle with the application process. Also, check for any home loan offers provided by your financial institution.
Step 2 – Property Valuation and Document Registration
Once you apply for this loan, the property you want to purchase will be valued to determine its fair market price. For property valuation, lenders will send representatives, who will inform assess the proper value. The lender will then approve the appropriate amount against it.
Once the property valuation is complete, it will be registered at the office of the sub-registrar in your area.
Step 3 – Loan Sanction and Disbursal
After the above legal procedures are complete, financial institutions will sanction your advance. Nowadays, the process of loan disbursal can be completed within four days of applying for it.
These are the three steps to avail a home loan in Kochi. The first step is the most critical, which you have to remain mindful about to ensure that there is no hassle in the application process. Read every term and condition very carefully before you apply.
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