10 Things to Know Before Taking a Home Loan

By Afiur
February 24, 2026

Check Your Credit Score

A higher credit score can help you get a lower interest rate.

Compare Interest Rates

Compare rates across banks and housing finance companies.

Understand EMI and Tenure

A longer tenure reduces EMI but increases total interest. A shorter tenure saves interest but raises monthly outgo.

Know the Total Cost

Check processing fees, legal charges, insurance and prepayment terms.

Assess Your Eligibility

Lenders calculate eligibility based on income, age and existing loans.

Choose the Right Loan Type

Home purchase, construction, plot plus construction, and home improvement loans have different rules and limits. (Image: Canva)

Keep Down Payment Ready

Banks usually fund up to 75–90% of the property value. You must arrange the remaining amount as a down payment.(Image: Canva)

Read the Fine Print

Carefully check clauses on penalties, prepayment, reset clause (for floating rate loans) and foreclosure rules.

Check Property Clearances

Make sure the property has all the approvals.

Maintain EMI Discipline

Missing your EMI affects your credit score and leads to penalties.

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