Finance | Uncategorized

Buying a Home in Mumbai? Understand the Different Home Loans Available

June 21, 2017

Mumbai is a busy city. Everywhere you will see a tall building, busy roads, and even busier people. This city is also known for its fast-paced lifestyle and expensive property rates.

There have been many visible changes in Mumbai’s infrastructure in the last 5 years with public utilities like bus stops and railway stations seeing a growth in their infrastructural development. Many builders have seen the potential in the Mumbai market and have begun to work on developing residential infrastructure.

Mumbai is a commercial city; it is the backbone of Indian trading. Well known global companies have a presence in Mumbai, and are successfully operating their business, with a talented pool of employees as a part of their workforce.

And many builders have numerous beautiful home options for a person looking to buy the property of their dream. But it is true that the real estate supply is restricted in Mumbai, and the desired home can be very expensive.  For places like Bandra, the cost of 1 BHK flats starts from 1.5 Crores.  

Hence a Home Loan can be a necessity in order to buy your dream home in Mumbai. The city has financial institutes and lenders offering Home Loans for various purposes which include:

  • Constructing a house
  • Buying a housing property
  • Buying a residential plot
  • Finance for repair/renovation of a home

A loan taken against a property you already own is known as a mortgage loan and these types of loans are usually known as a loan against property. In Mumbai, a bank usually finances 85% of the market value of the property in the city.

It is also possible to apply for a Home Loan online and get a quote from the bank or other financial institutions.

Every bank has their own documentation process specified on their website, with loan approval depending on various financial criteria. Here is the documents checklist to apply for a Home Loan:

Employment Details

Employment record, salary slips, work experience details, and TDS certificate are some of the things a bank looks into in order to assess if a person is eligible for the loan. Proof of business address may be required for non-salaried individuals.

The minimum salary required to apply for a Home Loan in Mumbai is around INR 30,000 with the minimum value of the property as INR 30 Lakhs (This amount varies for different banks).

Bank Account Statements

Some banks may require the loan applicant’s bank account statement for the last 6 months or more.

Identity/ Address Proof

Documents required would include one or more of the following Voter’s ID card / Driving license / Aadhaar card / PAN card.

Mumbai remains a city of many opportunities and countless dreams. And the dream of buying your own home can certainly be fulfilled. Make sure that as per your budget, you thoroughly research the property rates, preferred locality, builder’s credibility etc. and properly compare the different Home Loan terms being offered.

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