Madurai is an important urban centre in the state of Tamil Nadu and contributes to the state’s economy by way of tourism, small scale cottage industries, and automotive manufacturing. The city is famous for its pilgrimage sites and shows immense employment promise as a Tier II city.
Madurai has emerged as a preferred residential destination for many residents of the state, this driving up demand for real estate in the city. To help achieve your dream of owning a home in this ancient temple town, you may consider seeking a housing loan.
How Can a Home Loan Help You?
A home loan is instrumental in your journey to becoming a property owner – be it self-occupied or leased out. It is a credit tool that has come to become a sensible mode of investment for many Indians, and along with it – you are also able to save on your income tax, as well as enhance your credit score by showing a history of your timely repayment.
What you need to do to boost your chances of winning the lender over is have an excellent credit score, a history of no bad debt, and a steady income. Your CIBIL score is a marker of your financial profile and tells the lender all they need to know before they sanction your desired loan amount. The first step towards making a home loan application should be to ensure that you satisfy the lender’s eligibility and enhancing your credit profile.
Five Benefits of Taking a Home Loan in Madurai
As a resident of Madurai you do not need to worry about availing a housing loan in Madurai, you stand to gain immensely.
1. Affordable Interest Rates
If you’re able to meet the lender’s eligibility criteria well enough, you will be more likely to get yourself a low interest home loan, starting almost as low as 6.65%* p.a. This brings down your total cost of borrowing and makes the whole investment more affordable in the long run.
Apart from this, many lenders are also offering the provision to link one’s home loan interest rate to the RBI Repo Rate, as an external benchmark.
2. Attractive Tax Benefits
Did you know that the Income Tax Act of 1961 enables you to save money while repaying a home loan? For instance, according to Section 80C, you can access tax cuts on what you pay toward the principal loan amount. You can get a deduction worth up to Rs.1.50 lakhs.
3. Long Repayment Tenor
Compared to the typical repayment tenor of a personal loan, a home loan comes with a tenor that is lengthier and more comfortable for a financial commitment of this size. One can enjoy up to 30 years of repayment tenor if they have a strong repayment capacity and income profile.
4. High Loan Amount
Another attractive quality about a home loan is its ticket size. Eligible applicants who desire a high loan amount of Rs. 5 Crore* or even more can get so with zero hassles. However, one must note that they should borrow an amount that feasible
5. Availability of Prepayment and Foreclosure Options
Avail a home loan from a reputed lender also means that you have the facility to foreclose your loan, or make part-prepayments routinely, at no extra costs if you’re an individual repaying a home loan with a floating interest rate.
Additional Read: Use of Padho Pardesh Scheme to get education loan for Abroad Studies
Two Tips to Help You Apply for a Home Loan in Madurai
Applying for a home loan is no small decision. If you’re married, then try to speak with your partner to get a second opinion.
To assist you, we have curated a list of two tips to guide you through the home loan application process:
1. A Good Credit Score is Important Leverage
While reviewing your application, lenders will check your credit score. No one wants to lend money to someone incapable of repaying with interest. Your credit score says a lot about the kind of borrower you are.
Aim for a score of 750 or above. If you’re currently below this benchmark, we advise that you do all that you can to enhance your credit score in order to be eligible for the best home loan deal you can get.
2. Have a Stable Income
It is implied that when one applies for a home loan, one must have a stable income to be able to keep up with the repayment schedule. Whether you’re a salary earner or an entrepreneur, having a stable source of income ensures that your credit profile is elevated and that you’re seen as a dependable borrower.
Taking a home loan can be a rewarding experience, as this article has illustrated. No matter the desired amount, many benefits await you.
Remember, a low credit score dampens the chances of getting approved. So, pay any existing debt and avoid taking on more credit.
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