Few Rules to Remember while buying a house on Home Loan

These days Indian Bank Home loan interest rates are low. Also, with a decent credit profile, and great reimbursement limit one might get a home loan at the most reduced rates.

Be that as it may, before you go for a home loan, there are a couple of significant things to keep note of, which includes:

  • How much of a home loan you are getting depends on your eligibility for it , for example, your pay, CIBIL score, and existing liabilities.
  • You want to get a fix on different things like the cost of the property that you are thinking about purchasing.

All things considered, taking a home loan needs commitment from you as you have to repay the loan you bought from the bank on time in the next coming years. Paying EMIs for so long can affect your funds and subsequently, you should be extra cautious while taking an Indian bank home loan.

To make it simpler for you, the following are a couple of thumb rules to help you:

  • Always know the exact budget of your house purchase

Concluding your financial plan is one of the fundamental thumb rules which you want to keep while going for a home purchase.

For this you have to know what you can afford and then you can decide upon the budget. Doing this helps you keep your finances on track. 

  • Follow 35/50 Rule

While taking an Indian bank home loan, banks get some information about your liabilities and financial duties which includes the loans you have taken in the past from the bank. 

This is asked because banks for the most part don’t loan a sum on which the EMI will be more than 45-50% of your monthly pay.


In any case, it is generally encouraged to take a home credit where the Indian bank home loan EMI isn’t over 35% of the month to month pay while your absolute EMI including every one of the credits ought not to be over half of your complete month to month pay. 

  • The financial assessment is an Important Check

A credit check is likewise among one the most things which you want to follow while applying for a home loan. For the people who have a decent financial assessment, it is simpler to fit the bill for the credit while for other people, it becomes troublesome. The Banks also offer a lower interest rate to the borrowers for home loans who have high CIBIL score. This implies having a decent credit profile helps in getting a superior home loan arrangement from banks. Along these lines, why not look at this before applying for a home loan. If you don’t have a decent CIBIL, hang tight for a couple of months, take individual credit for a modest quantity, begin paying its EMI and follow a couple of months when your CIBIL is great, apply for the home loan.

  • Choose a Shorter Tenure

Compensating a home loan for a more extended residency might decrease your EMI. However, do you realize?  This way you will end up paying more interest rate that will increase the total cost of borrowing. 


This implies assuming you select a more extended home loan to keep EMIs low,the total interest burden will be high. So to keep the interest low you should opt for lower tenure for your Indian Bank  home loan.


Indeed, this was about the thumb rules which one ought to adhere to before going to buy a home through a home loan. Following this will ensure you a happy borrowing of home and a good financially secured future for yourself and the family. 


James Harrison: James, a supply chain expert, shares industry trends, logistics solutions, and best practices in his insightful blog.