Home Loan in Hyderabad

The city of Nizams, Hyderabad is the pride of India. Being the largest city of Telangana and also its capital, Hyderabad is known for its classic architecture and exclusive Hyderabadi biryani. The city is also known as the city of pearls as leading peal manufacturers of the country reside here.

It is not just the fastest developing city contributing greatly to the green environment, but Hyderabad has also become an IT hub attracting aspiring IT and management professionals. With the rising population and property demands, Hyderabad has become the most sought after city to settle in India.

Any individual working here dreams of owning a home in this smart city. Lack of funds is the major reason due to which people live in rented flats. A home loan in Hyderabad is the most popular financial product that provides funds to individuals for purchasing a residential flat, construction of a new house or even renovation of home at flexible and low-interest rates. We will discuss some of the important aspects as well as best tips to avail a House loan in Hyderabad.

Features of Home loan in Hyderabad

Apart from funds to buy a home, a home loan offers a variety of features and benefits catering to the needs of the buyers. Easy payment, flexible tenure, top-up facility, minimum documentation, lowest turnaround time, part-payment, flexible interest rates, low processing fees, home loan insurance, etc, are some of the significant factors that you need to look at when availing a home loan in Hyderabad.

Eligibility Criteria and Tips to Avail House loan in Hyderabad

  • Minimum age -18 and maximum age -70 (maximum age may vary)
  • Net income- Annual income must be consistent and regular. A minimum of 3 lakh is required to be eligible for a home loan
  • Occupation- A home loan applicant can either be salaried, self-employed or a professional.
  • Credit score- It is one of the most important aspects to get a home loan. The credit score, also known as the CIBIL score is checked from your PAN card details. The flow of financial transactions to your bank accounts are rated to determine your credit score. The score gets adversely affected by non -payment of credit card bills, bouncing of cheque, default payments, etc.

Tip #1: A good credit rating is an essential requirement for approval of home loan. A positive credit rating improves your credit worthiness; hence banks and other financial institutions sanction loans easily to individuals who have a good CIBIL score.

Tip #2: Documentation is an important aspect in the home loan process. Mandatory documents include identity and residential documents, salary slips, bank statements, ITR, property papers, etc., for the processing. Always get your property papers double-checked and verified by certified lawyers to rule out any sort of discrepancy.

Typical Home loan interest rates

Banks such as Yes Bank, Axis Bank, State Bank of India, LIC Housing Finance, and HDFC Home Loan offers lower interest rates to loan applicants.

  • LIC Housing Finance: offers 8.40%-8.50 % p.a. for a tenure of 5 -30 years
  • ICICI Bank: offers 8.65%-10.35% p.a. interest rate for 3-30 years
  • HDFC: offers 6.95%-7.85% floating interest rate for 1-30 years

Top-up Loan Facility for Home Loan in Hyderabad

Another great feature of a home loan is the availability of top-up loan. A top-up loan means availing extra funds on the home loan within your eligibility. In case of construction of a house, it may happen that an individual requires more funds. In such cases, there is no need to apply for a fresh home loan. You can take a top-up on your existing loan and get more funds. The extra funds increase your monthly instalments at the same interest rate available.