Today, we have several monetary planning systems available that help us to achieve our dreams. Setting up a new house for the family is definitely one of the most important chapters of our life that we would want to get through, without making any error on our part. With the home loans available from various banks, owning the dream home is no more far from reality. However, choosing the right home loan may turn out to be more problematic , with so many options being already provided.

How to make the Right Decision?

One of the key solutions is to choose the right lender for your home loan. Looking at the various tips provided below will help you to know what to expect.

1.  How to Make Sure you Are Eligible for a Home Loan in India?

To calculate loan eligibility, different banks use different approaches. Your financial income will be one major issue, and you always should look for a bank that is willing to give you the maximum amount based on your earnings. If your own salary is not enough, you can add your spouse’s income to the nest egg as well to better your loan eligibility.

      2. What Type of Rate of Interest to Choose? 

If you are more interested in floating rates, always make sure to recheck what the current rate of interest chosen by your lender is. You would thus have an idea, if the rate had floated down in the last few years. Also, remember that a fixed rate of interest can be changed after a certain period of time. Your lender will have the right to arbitrarily change it.

3. What about the Processing Fee?

 It is mandatory for anyone to pay a processing fee to the bank while making an application for loan. The fee charged is usually around 0.5% to 1.0% of the total amount of loan. This fee does not guarantee that your application will be accepted, but that it will be considered. It is also non-refundable. So never trust any bank which states that your processing fee will be returned to you.

4. When to Choose your Loan Lender?

Once you have chosen your property, you should decide on the specific type of home loan that would most suit your needs. There are banks that offer financial help to acquire properties that are already constructed and ready and there are financial establishments that will help you acquire properties that are still being modified.


It is always better to play safe when you are applying for a home loan. You should consider pre-payment charges, valuation fees and other hidden costs as well. Also, never take your lender’s word for anything. Always get it in writing, so that you have a paper trail as your evidence.