This is the best time to buy a house! Know which private banks are offering the cheapest loans.

It is everyone's dream to have their own house, but it is not easy to realize this dream amid rising prices. That is why there is a need for a home loan. Along with government, private banks also provide loan facility for buying, building or renovation of a house. But before taking a loan, it is very important to know some important things. Like which banks are offering home loans at the lowest interest rate, how much does your credit score affect and which documents should be checked while buying a property. If you understand all these things in advance, then buying a house will also be easy.

Why is a good credit score important?

The interest rate of the home loan you get depends largely on your credit score. If you pay all EMIs and credit card dues on time, your score remains better. If your score is 800 or above, then you are considered a 'super-prime borrower'. That is, banks are ready to give you a home loan at a low interest rate.

What does the interest rate of home loan depend on?

Every bank gives loans at different interest rates. This rate depends on factors like your credit score, loan tenure, your age and profession. Let us know about the lowest interest rates being offered by banks in May 2025. Along with this, let us also know about how much EMI will be made on a loan of ₹ 30 lakh in a period of 20 years.

Which documents should be checked before buying a new property?

Whenever you go to buy a new house or flat, make sure to check some important documents. These documents prove that the property is legally correct and there is no hassle on it.

Sale Deed – It shows in whose name the property is and that you have bought it correctly.

Title Deed – It shows who owns the property and there is no dispute or loan on it.

Building Plan Approval – The map of the building should be passed by the Municipal Corporation.

Completion Certificate – If the building is newly constructed, then it shows that its work has been completed.

Commencement Certificate – If the building is still being constructed, then this is proof of permission to start the work.

Conversion Certificate – If the land was earlier used for agriculture and now has been converted for building a house, then its proof is necessary.

Latest Tax Receipts – It shows that the property tax has been paid on time.

Occupancy Certificate – It shows that the house is habitable and is built according to the law.

If all these documents are correct, then you can buy the property without hesitation.

What is the impact of salary on home loan?

Your salary i.e. your net income (the money you get after taxes and deductions) decides how much loan you can get. The bank considers your monthly EMI as a part of your income. Usually this part can be from 20% to 70%. For example, if your salary is ₹50000, then the bank will give you an EMI which can be between ₹10,000 to ₹35,000. If you want the bank to give you a higher loan, then you can make your spouse or any earning member of the family a co-applicant. This will increase the loan amount by combining the income of both.