Be it educational institutions, businesses, entrepreneurs, or families, Pune offers a gamut of different lifestyles to choose from. Therefore getting the best home loans in Pune and buying a house is popular. Every financial institution offers housing or a home loan. They consider different criteria while sanctioning it. So, if you want to take a home loan, it is essential to learn all about it. Taking a home loan is a significant financial responsibility that will run for years till you can pay back the entire amount. Following are the various home loan options in Pune you can choose from based on your requirement. 

1) Loan for buying home 

A basic home purchase loan is for individuals to purchase a residential property. Any bank or financial institution usually offers up to 80-85% of the market value of the home as the amount for a loan. The home loan in Pune rate of interest is either fixed, hybrid, or floating. 

2) Loan for purchasing land 

Land purchase loans are given by non-banking financial companies (NBFCs) or banks to purchase a plot of land on which a borrower wants to construct a home. These institutions provide up to 80-85% of the cost of the plot of land. 

3) Loans for improvement of home 

If you are an individual who already owns a home, but you want money to renovate it, then you must go for a home improvement loan. The renovation can be a painting of the wall, waterproofing, electrical wiring, digging a bore well, etc. Pune home loan rates of interest are fixed accordingly.

4) Home loans for NRIs

 Home loans for NRI s are specialized home loans custom-made to support any non-resident Indian to buy a residential property in the country. The structure of an NRI home loan is generally very identical to regular home loans by the best home loan lenders in Pune, but the documentation and paperwork get more tedious. 

5) Loan for constructing a home  

These kinds of loans are for applicants who need to build a house on their chosen plot. The plot can be co-owned or owned by them. The approval procedure for such homes is very different in certain aspects when tallied with the commonly available home loans. This includes features like: 

• An evaluation is made only for the construction of the home if the price of the cost is not included in your loan.
• The plot of land you have must be purchased within a year
• There must be a rough estimate of the price by the borrower that will be needed for constructing the house.

6) Loans for home extension

 Home extension loans are the kind of loans that are taken by individuals who want to extend or expand their existing homes. This loan is generally included by banks as a part of their loans for home improvement. Few financial institutions and banks make this a separate loan based on the need for expansion of the house. 

Now that we have more or less covered the types of home loans that are available, let us know about the eligibility criteria you would require to check off before your loan application. 

Eligibility Criteria For Home Loans In Pune 

1) Eligible Age 

The applicant, if he is a salaried individual, his/her age should range between 24 years of age till 65 years at the time of maturity of the loan. Any younger borrowers will be given more precedence owing to their higher income potential.

2) Eligible Income

Your minimum monthly income must be adequate to be able to afford a home loan. This also determines the amount of the monthly instalment. 

3) Employment

A borrower must have a minimum of 2 years of total job experience and at least six months in the company he/she is currently employed in. A salaried individual who works in a stable job will be given higher preference. 

4) CIBIL Score

The CIBIL score must be greater than 700 to qualify for a home loan in Pune. 

5) Current financial commitments

In addition to income, the existing EMIs are also taken into account so as to not put further financial pressure on applicants by the loan EMIs.

6) Loan Value Ratio

It is the maximum amount of loan that a financial institution or bank can offer and approve for a home loan or a mortgage loan in Pune. 

7) Value of the property

 The value of the property is also determined by the bank or financial institution in terms of construction quality, market value, location, age of the property, etc., to decide the eligibility of the loan.

Home Loan Eligibility Document List 

Following is the essential list of documents that one needs to apply for a home loan in Pune. 

• Identity Proof – Voter’s ID card, PAN card, driving license, employee card, 
• Residence proof – aadhar card, property tax/ water bill, ration card, latest electricity bill 
• Co-applicant and guarantor – KYC
• Income proof for salaried individuals – bank statements of 6 months with proof of salary getting credited, payslips of last three months, form 16 of previous two years.
• Income proof for self-employed individuals – bank statements of 6 months for primary account, Income Tax returns for the last two years, the financial audit by CA (if applicable)
• Property documents 

Advantages Of Home Loans 

Following are a few benefits of home loans by the best home loan providers in Pune. 

• Loans For Multiple Needs: Loans can be availed of for different purposes. Whether you are adding another floor or constructing a new home, or purchasing a house, there are home loans to suit every requirement.
• Managers of Customer relationship: dedicated customer relationship managers are available to you from the end-to-end home loan journey. These people are always available to support you with any queries.
• Loan Application: Regular updates are provided via text message on the loan application status, and notify them before their payment schedules through automated text messages and calls. 
• Latest Technology: Most of the loan process is entirely paperless. The documents are uploaded by scanning them into the system. The loan can be tracked via a mobile application. The mobile application is also dedicated to many functions like accessing statements of the loan, prepayment of loans without any charges and raising requests for service. 

In A Nutshell 

The pleasant and cool climate of Pune acts as a motivator to choose Pune as one’s city of residence. There are top residential areas like Wagholi, Mundhwa, Kharadi, Keshav nagar, and the eastern parts of Pune. With property costs soaring, the best way to purchase a house in Pune is to take advantage of the best home loans in Pune. With multiple advantages and features. Home loans in Pune are the preferred way of buying a home with most buyers. There are multiple kinds of loans to suit every requirement.