The property market in Kolkata is buoyant, even if the home loan interest rates are off the lowest point in a decade.
However, there is a concern that the interest rates will be hiked further as the inflation monster is down but not out.
The inflation rate is still at an elevated state in many economies of the world and the central bankers are on alert, although some of them have paused the rate increase tempo.
Interestingly, Kolkata property sales have experienced a robust growth of 38% in 2022-23 over 2021-22.
However, homebuyers are wary that there will be more hikes and EMIs will rise, although consumer price inflation has markedly moderated in India to a modest 4.25% in June 2023.
Interest rates are linked to the inflation rate, and higher inflation requires interest rate hikes to control it. If inflation is under control and does not show any signs of a runaway increase, interest rates can stabilize.
Currently, RBI has taken a pause from raising the interest rates.
This has helped to stabilize home loan rates and consequently the EMIs.
Any More Interest Rate Hike Will Hurt
Inflation is an unpalatable reality at the current moment and consumers are stressed to purchase what is necessary.
We have seen that consumer demand is stagnant for quite some time except in some sectors. Further price rises will seriously hurt the purchasing power of the consumers.
Although the real estate sector is not affected because of the rate hikes, more prospective homebuyers will confirm property purchases if the home loan rates are reduced.
However, there is some good news for the homebuyers.
Homebuyers can now avail of home loans for a longer tenure and therefore pay a much smaller EMI. This will considerably help them fight inflation and manage the monthly family budget.
We will discuss this in more detail but before that let’s discuss how CIBIL score can help borrowers get home loans in an easier manner.
Benefits of a High CIBIL Score
If you want to get easy approval for a home loan application, it is important that you have a high CIBIL score.
Before anything else is taken into consideration, the bank will do a thorough check of your income level, your current expenses, and the credit information report from the Central Information Bureau India Limited (CIBIL).
CIBIL is a company that keeps track of an individual’s finances pertaining to credit cards and loans. Banks and other lenders send information reports to CIBIL every month. Using this information, CIBIL creates a Credit Information Report (CIR) and provides a credit score for an individual.
Home finance institutions and banks may even charge less interest rates if your CIBIL score is high, resulting in lower EMIs.
A high CIBIL score of 750 and above will make you the darling of the banks as a customer with spotless financial health and high repayment capacity. Even a score above 700 is good enough.
However, if your CIBIL score is low, you can still manage to get a home loan approved by increasing your income, reducing your current liabilities, choosing a higher loan tenure, or paying a higher down payment. Another way out is to assure the bank by introducing a reliable guarantor. In such a case, the guarantor must have robust finances and a good credit score.
A longer-tenure home loan is particularly beneficial for homebuyers with a slightly lower CIBIL score.
Easy Home Loans are Now Easier
The Indian property market is on an upswing and one of the main reasons for this is easy credit availability.
It is now elementary for homebuyers to get home loan approval with minimum documentation. In fact, you can even apply online.
We at NK Realtors’ “Home Loan Assistance” department strive to deliver a value-added service by facilitating our in-house customers with their home loan needs.
We have affiliations with top home loan providers, and you can avail of the best possible RoI as per market standards at no extra or hidden cost.
Who Needs a Long-Tenure Home Loan
There was a time when homebuyers used to consider buying a home at their late thirties or early forties.
Not any longer.
Now everyone wants to have a roof over his head as early as possible. Young people are booking apartments as soon as they are getting a job after finishing college.
They need home loans and they have a long runway of working life ahead of them.
A home loan of 40-year tenure will particularly help them.
Moreover, they are at the start of their career and have limited capacity to pay EMI. Therefore, a modest EMI amount will particularly help them.
Now, you can meet your home loan need even if you are in your twenties and wish to pay a modest EMI for 40 years.
Now Get Home Loans for 40 Years
As we have discussed, you can get a home loan with 40-year-long tenure now.
You can get a sizeable home loan amount of Rs 15 crore. Your home dream cannot be too small.
If you are salaried, your age should be between 23 and 62 years. Alternatively, for any self-employed professionals, the applicant’s age must be between 25 and 70 years. The upper age limit is considered the age at loan maturity.
You can be a salaried individual, a self-employed professional like a doctor, or a self-employed non-professional to be eligible to apply.
The applicable interest starts from as low as 8.5%. You can also opt for external benchmark-related interest rates.
Take advantage of EMI as low as Rs 733 per lakh. Contact NK Assist today and get the best advice and service regarding home loans.