India is seeing a housing boom. Property prices are falling in some areas. The government is pushing its ‘housing for all’ scheme. Home Loans are becoming cheaper. So, taking a Home Loan in the top cities of India is now viable.

Which are the Top Five Cities to Buy Property in India?

Here is a list of the top cities in India where you can buy residential properties within Rs 30–50 lakh. These destinations may include some of the smaller, emerging cities in India that are undergoing vigorous infrastructural development.

  • Hyderabad and Telangana: Telangana and its capital city Hyderabad are seeing a real estate upswing. These southern destinations are a ‘buyer’s market’. They have a buoyant economy supported by the IT/ITeS industry based there. There is also a dynamic workforce. On an average, you could get 27 sq ft of property for every lakh that you spend in Hyderabad or Telangana in general.
  • Ahmedabad: Ahmedabad’s housing is also quite affordable. If you earn over Rs 8 lakh a year, you can afford a house there. Ahmedabad has seen a huge growth in Oil, energy, gas, automobile manufacturing, and petrochemicals are spurring on the economy. The demand for real estate matches the quality of real estate available. For every lakh you spend, you can get 25 sq ft of property.
  • Jaipur: Jaipur enjoys year-round tourism. But it has recently seen an IT boom as well. This has led to an increased demand for residential real estate. Like Ahmedabad and Hyderabad, Jaipur offers great value for money.
  • Kochi: The development of the IT/ITeS industry in Kochi has led to a realty boom. The good news for buyers is that they can get great value for money in Kochi, too. With a lakh, you can buy around 20 sq ft of property.
  • Pune: Pune has great manufacturing and services sectors, as well as a booming IT sector. It is no stranger to the luxury segment. But there has been a shift in the housing market recently. Pune is now seeing a burgeoning affordable market segment.

What Affects Your Eligibility Criteria for a Home Loan in the Top Cities?

  • Your Age: Lenders prefer applicants who have at least 10 to 15 years left before retirement. The age of the applicant determines the length of their tenure.
  • Your Credit Score: A good credit score reflects a good credit history. It shows disciplined and regular repayment habits. If you have a good credit score, you can negotiate with the lender to reduce your interest rate.
  • Your Monthly Income: Your monthly income determines the loan amount the lender may sanction. Lenders typically set your EMI to below 40–50% of your monthly income.
  • Your Educational Qualifications: Lenders look at your educational qualifications. People with higher education usually occupy higher positions in their careers. They earn better, too.
  • Your Employer: Your employer status may cause the lender to sanction or reject your loan. If you work at a top-category company like Accenture, lenders may offer you reduced rates. They are more likely to sanction your loan, even if you do not earn a lot.
  • Your Job Stability: Lenders view stable employees more favourably over people who jump jobs.
  • Your Dependents: Lenders consider the number of dependents you have when it sanctions your loan.
  • Any Debts: Existing debts reduce your repayment capacity. So, your loan amount may reduce according to how much debt you owe.

How to Choose the Best Home Loan Offers

The best Home Loan lender could be the one with whom you have an existing relationship. Do you have a good rapport with your bank or non-banking financial company (NBFC)? They might then consider that relationship when they view your loan application.

Sometimes, your own bank or NBFC may not offer you the best Home Loan terms and conditions. If you have a bad credit score, you may want to approach an NBFC rather than a bank. NBFCs are less stringent about credit scores.

But, if you have a good credit score, you should research banks that are offering dynamic EMIs. These charge lower interest rates if you have a good credit score.

Summing up

Getting the best Home Loan in the top cities in India would depend on what the bank or NBFC offers you. A Home Loan that is good for one person may not be good for you. It all depends on how much you fulfil the eligibility criteria. Which is the best Home Loan lender for the top cities in India? It is the one that suits your financial situation the best.

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