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Major Factor To Consider Before Taking A Home Loan

The market for homes and prime property is steadily on the rise with each passing day. Prices of prime property and houses that are on sale can drop or rise within months due to various economic or environmental factors. But regardless of this, purchasing a home is a secure and smart investment. Most people can not afford the exorbitant cost of owning a house with home loan.

Thus, obtaining financial aid in the form of a home loan to invest in a house can be a good idea.  

Major Factor To Consider Before Taking A Home Loan

With fair monthly payments and various refund policies, lenders are making the process of availing a home loan simpler.

Many factors must be considered before taking a loan. Let’s take a look at a detailed list of these criteria you should be aware of before applying for a home loan.

Credit score

A strong CIBIL rating and CIBIL history makes it much easier to get loans at lower rates of interest and extra credit incentives.

Thus, the first factor that should be considered for the home loan is the CIBIL score.

A total score of 750 to 900 is generally enough for the loan application to be accepted without any hassle.

Interest Rate

There are two types of interest rates. The fixed interest rate where, regardless of the fluctuation of the financial markets, the interest rate remains the same.

A floating interest rate implies that the interest rate differs according to the economic conditions.

Many borrowers favour a floating interest rate now since it proves to have longer-term advantages than a fixed interest rate.

PNB offers attractive home loan interest rates, connect with them and grab the best deals. 

Tenure for repayment

If you choose a home loan, check if the bank allows you to select a limited payment period.

It is often best to opt for a shorter tenure, since the longer the repayment tenure of the loan, the higher the interest you must pay.

The loan amounts 

The home loan amount depends primarily only on the property’s market value. In general, you can receive 40 to 80% of the market value of the property in a loan.

If you are trying to secure a higher loan, search for a lender who has a history of sanctioning these loans.

Change of Lender

Borrowers can turn to another lender from their current lender. The transition is primarily due to the low-interest rate offered by another lender.

A prepayment charge is to be paid if this is done. But this can only be considered if there is a substantial improvement in the interest rate. 

PNB offers attractive interest rates on mortgage loans against property. You can also apply online for a PNB housing home loan or get in touch with a customer care representative to know more.


All these factors should be considered and kept in mind always when applying for a loan to help you decide which loan is the best choice for you.

Carry out thorough research for viable choices that can work for you. Decide on the best loan with a reasonable internet rate and EMI, such as PNB housing home loan.