Home Loan Alert: Memorize these 10 things before you fall into a debt trap..

Buying your dream home is everyone's aspiration. People want to invest all their hard-earned money in buying a house, but the truth is that buying a house is the biggest financial decision. That's why, along with choosing the right house, it's also crucial to understand the right bank, the right interest rate, and your financial preparedness. So, if you are taking a home loan for the first time, it's very important to keep a few things in mind. Let's find out the 10 important things to consider before taking a home loan.

1. Check your credit score
Your credit score plays the biggest role in home loan approval and determining the interest rate.
A credit score of at least 650-749 is required for a home loan.
The better the score, the better the interest rate you'll get.

2. Keep your EMI below 40% of your salary

Your EMI should not exceed 35-40% of your salary; otherwise, daily expenses will become difficult.
For a salary of ₹50,000, an EMI of around ₹18,000 is acceptable.
Check with an EMI calculator beforehand.
Taking a loan for 20-25 years will reduce the EMI, but you will have to pay more total interest.

3. Compare interest rates
SBI starts at around 8.5%, HDFC at 8.75%, ICICI at 9%. (Interest rates may vary)
Find out the benefits when the RBI repo rate decreases.

4. Check processing fees and hidden charges
Processing fees can be up to 0.5-1%.
It can be up to ₹50,000 on a ₹50 lakh loan.
Some banks offer zero fees; also, check legal charges and valuation fees.

5. Take a loan for only 80-90% of the amount
You can get a loan for up to 90% of the property value.
However, it's always best to take a loan for less than 80%.
Always keep a higher down payment for the loan.

6. Take advantage of the PMAY subsidy
If you are buying a house for the first time and your annual income is up to ₹18 lakh, then avail a subsidy of up to ₹2.67 lakh under PMAY. You can save more money by registering the property in a woman's name.
Check the detailed subsidy information on pmaymis.gov.in.

7. Significant Tax Savings

You can get a deduction of up to ₹1.5 lakh on the principal amount (80C) and up to ₹2 lakh on the interest (24b).
If you take a joint loan, both individuals can benefit separately.

8. Get Insurance

Home loan insurance ensures that your family is not burdened if you are unable to repay the loan.
The premium will be only 0.2-0.5%.

9. Keep Pre-payment and Balance Transfer Options Open

Pre-payment is free on floating interest rates.
Learn about transferring your loan to another bank if interest rates decrease.

10. Keep Documents Ready in Advance

Aadhaar, PAN, salary slips (3 months), bank statements, and property papers.
Online application leads to approval in 7-15 days.

How to Apply for a Home Loan: Easy Steps

Check your credit score.
Use an EMI calculator
Get offers from 3-4 banks
Apply online
Upload documents
Signing after approval

With smart planning, your dream home is yours, with zero tension.
Taking a home loan in 2025 is easier than ever, but keeping these 10 things in mind will not only get you a cheaper loan but also make EMI payments easier. Yes, it's the right time to fulfill your dream of owning a home. Check your credit score today and start applying. (Note: This news is based on general information; for more details, contact your nearest bank)

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