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What is the secret to be a comfortable home loan borrower

There are various banks and private lending organizations which offer home loans. The secret to be a comfortable home loan borrower is not just hidden in your ability to choose an appropriate lender who offers you a good interest rate. It also lies in your ability to repay your loan amount without defaulting and manage your loan throughout the tenure, promptly and wisely.


Here are a few secrets that will help you to be comfortable as a borrower;


Don’t settle for a home with an area larger than what you can afford to buy.

Choose the size of your home which does not overshoot your requirement, whether to stay or invest. When you go for a home larger than your requirement, obviously your loan amount increases and challenges your repayment capacity, causing discomfort.


Prefer a lender recommended by your builder.

This can be fruitful once your are eligible to get a loan as determined by the home loan eligibility calculator. The association between the builder and a lender recommended by him matters during the disbursal of amounts as per the builder’s demands. It will facilitate a direct coordination between the lender and the builder without the need for the borrower to get involved at the disbursal stage.


Produce all the documents required by the lender earnestly.

If all your documents are clear, you will get the most competitive home loan interest rate and even your eligibility to procure the loan will stand in your favour.


Maintain your CIBIL score high.

By keeping your CIBIL score high, your credibility gets noticed. Ensure that you don’t default on your credit card payments and payment of other loans that you may have. This will keep you in a comfort zone when you apply for a home loan.



Do not go overboard while deciding your housing loan amount.

The more the amount, the larger will be the amount you pay in EMIs. So it is important to keep your loan amount as minimal as possible so that you don’t need to compromise on your regular expenses and other financial commitments.


Avail the benefit of Pradhan Mantri Awas Yojana (PMAY).  

If you are a first time home buyer, you can avail PMAY, a unique scheme by which the Government provides interest subsidy on the EMI amount. The eligibility of home loan borrowers with respect to their annual family income is classified as follows;

- Economically Weaker Section (EWS) - up to Rs.3,00,000

- Low Income Group (LIG) - between 3,00,001 to Rs.6,00,000

- Middle Income Group - I (MIG - 1) between Rs.6,00,001 to Rs.12,00,000

- Middle Income Group - II (MIG - II) between Rs.12,00,001 to Rs.18,00,000.


Buying a home is a one time decision for most. When you go for a home loan, you may consider the above tips which can help you to be comfortable and smart as a borrower.


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