Pune, the second largest city of Maharashtra, is known for its pleasant weather, esteemed educational institutions, and plenty of job opportunities, making it an ideal place for anyone to live. As a result, a huge number of people are always on the lookout to buy a property in Pune. Due to high real estate prices, buying a property in Pune may seem difficult but with the help of home loans buying the house of your choice is easy.
Pune Home Loan Features & Benefits
- Interest subsidy under PM Awas Yojana – Home loans taken under PMAY CLSS will get you an interest subsidy of up to Rs. 2.67 lakh
- Low-Interest Rate with Flexible Options – Individuals with good repayment history and repayment capacity can get home loans at the lowest rates. Home loans are available at both fixed and floating rate options
- Balance transfer facility – Enables you to transfer your home loan to another bank offering a lower interest rate on home loans
- Top-up loan facility – Home loan top up takes care of borrowers’ additional funding requirements
- Home loan insurance – Secures your home loan and helps your family in taking care of the remaining home loan in case of an unfortunate incident
- Pre-approved home loan – For a quick acquisition of a home with the least documentation and a simple approval process
- Multiple tax benefits – Home loan comes with multiple tax benefits of up to Rs. 3.5 lakh on home loan principal amount and interest amount
Compare Home Loan Interest Rates for Top Banks & HFCs in Pune 2022
|Interest Rates (% p.a.)|
|Name of Lender||Up to 30 Lakh||Above 30 Lakh & up to 75 Lakh||Above 75 Lakh|
|State Bank of India||6.70-7.65||6.70-7.75||6.70-7.85|
|Kotak Mahindra Bank||6.55 onwards||6.55 onwards||6.55 onwards|
|PNB Housing Finance||6.99-12||6.99-12||7.15-12|
|Punjab National Bank||6.55-7.95||6.50-7.65||6.50-7.60|
|Bank of Baroda||6.50-8||6.50-8||6.50-8.25|
|Union Bank of India||6.40-7.60||6.40-7.65||6.40-7.65|
|IDFC First Bank||6.90 onwards||6.90 onwards||6.90 onwards|
|L&T Housing Finance||6.75 – 7.75||6.75 – 7.75||6.75 – 7.75|
|Godrej Housing Finance||6.49 onwards||6.49 onwards||6.49% onwards|
|Tata Capital||6.70 onwards||6.70 onwards||6.70 onwards|
|LIC Housing Finance||6.66-7.85||6.66-8.05||6.66-8.05|
Get Home Loans @ 6.75% Onwards with Zero Processing Fees Apply Now
Calculate Home Loan EMI
The home loan EMI calculator is a useful tool for knowing home loan EMI in advance. To give results, it requires input values for the loan amount, tenure, and interest rate. The home loan calculator also helps in comparing different loan choices from various banks and other lending institutions. A user can change the input values until he/she gets an affordable loan structure. Calculate your home loan EMI.
Home Loan Eligibility in Pune
|Residency||Indian Residents, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs)|
|Age||18 to 70 years||21 to 70 years|
|Minimum work experience/ business continuity||At least 2 years||At least 3 years|
|Net minimum income/salary||At least Rs. 25,000 (may differ across lenders and areas)||At least Rs. 5 lakh (may differ across lenders and areas)|
|Credit Score||A score as close to 900 will get you better loan terms|
Factors affecting home loan eligibility
Following are the factors that decide a borrower’s eligibility for a home loan:
- Credit Score: Your credit score reflects how responsibly you can handle credit. A credit score closer to 900 represents responsible credit behavior, thus, increasing your chances of getting home loan approval.
- Applicant Age: The minimum age to apply for a home loan is 18 years and the maximum age at the time of loan maturity should be 70 years. The age criteria may vary from one lender to another.
- Job or Business Stability: Stability in a job or business ensures stable income, which further ensures timely loan repayment. To apply for a home loan, salaried applicants must have at least two years of total experience. Self-employed applicants, on the other hand, should have run a business for at least 3 years.
- Debt-to-Income Ratio: To be qualified for a home loan, the percentage of your current financial obligations with respect to your income should not be more than 40%. The higher debt-to-income ratio would mean a major portion of your income will go towards the repayment of your existing loan obligations, increasing the risk of defaulting in the future.
- Property Details: Your bank may dismiss your home loan application if the remaining years of your property till loan maturity is less than your lending institution’s standards. Your home loan application may also be dismissed if the property location doesn’t fall within the geographical limits mentioned by the home loan finance companies in Pune.
How to improve home loan eligibility
- Improve your credit score: Higher credit score shows creditworthiness; thus, increasing your chances to get a home loan at better terms and rates. Therefore, try to keep your credit score as close to 900.
- Pay higher down payments: Home loan borrowers may need to contribute 10-25% as down-payment as lenders in Pune can finance 75% to 90% of property’s market value. To increase your home loan eligibility, applicants may have to contribute more towards their home down payment. Doing so will lower the LTV ratio; thus, improving home loan eligibility.
- Add a co-applicant to your home loan application: If you are not qualified for a home loan, you can add a co-applicant to your home loan application and go for a joint home loan. However, adding a co-applicant will help only if the co-applicant has a decent repayment capacity and credit history.
Documents Required for Home Loan in Pune
The list of documents required to apply for a home loan in Pune, Maharashtra is:
- Duly filled and signed home loan application form
- Passport size photographs
- Proof of Identity such as Aadhaar Card, PAN Card, Driving License, Passport and Voter ID Card
- Proof of Residences such as Aadhaar Card, Voter ID Card, Passport and Driving License
- Proof of Business Continuity of at least 5 years (for self-employed applicants)
- Proof of Income such as Form 16 or latest salary slips (for salaried applicants)
- Past 6 months’ bank account statements
List of Top Banks/HFCs for Home Loan in Pune
Some of the Top Banks and Housing Finance Companies (HFCs) in Pune, Maharashtra are:
- HDFC Bank/HDFC Ltd.
- LIC Housing Finance Ltd.
- State Bank of India (SBI)
- Bank of Baroda (BoB)
- Punjab National Bank (PNB)
- ICICI Bank
- Axis Bank
- Kotak Mahindra Bank
- Canara Bank
- Bank of India
List of Top Builders in Pune
- Tata Value Homes
- Adnani Group
- Tata Housing Development
- Mahalaxmi Group
- Godrej Properties
- Mahindra Lifespaces
- Marvel Realtors
- Gera Developments
- Parsvnath Developers
- Ajmera Group
Types of Home Loans offered in Pune
- Home Purchase Loan – People usually take this loan when they have to purchase a new residential property including under-construction properties, ready-to-move-in houses, or resale/pre-owned properties
- Composite Loan – This type of home loan is apt for people who want to buy a piece of land for investment or house construction
- Home Construction Loan – Individuals apply for this loan to fund expenses related to house construction
- Home Improvement Loan – The loan is used to finance expenses related to home renovation or home improvement
- Home Extension Loan – Anyone who is in need of funds to add more space to their existing house can apply for this type of home loan
- Bridge Loan – This home loan type is best for people who plan to buy a new house with the funds received from the sale of the existing house. The housing loan helps in covering the gap between the sale of an existing house and a new house purchase
- Interest Saver Loan – This type of home loan acts like a home loan overdraft. The borrowers’ home loan account is linked to their bank account. If the amount deposited by the borrower is more than the EMI amount, the difference will be used as a prepayment towards the loan, thus, reducing the home loan principal and saving on the total interest payable
- Step Up Loan– In this type of home loan, borrowers pay lower EMIs during the first few years of the loan tenure. The loan type also has a provision to increase EMI over time. This makes repaying loans more affordable for professionals who have just started their career
Check Also: Types of Home Loan