The Top-10 Tips to Choose The Best Home Loan in 2022

Getting your own shelter can be one of life’s most blissful experiences. However, the cost of house purchase or construction can be huge, which is why smart people rely on home loans to fulfill their dream conveniently. Unfortunately, while many lenders offer home loans to salaried and self-employed professionals and non-professionals, not every lender provides similar benefits. So, evaluating the lender and the loan is crucial for choosing the best home loan in India.

This article discusses the top-10 tips you need to choose the best home loan in 2022.

The Top-10 Tips to Choose The Best Home Loan in 2022

1. Save For the Down Payment

Down payment refers to an amount you must pay to avail a home loan, such as a PNB Housing home loan. The down payment amount usually ranges between 10% to 20% of the total loan value. So, if your loan amount is INR 50 lakh, the down payment amount may range from INR 5 lakh to 10 lakh. The down payment enables a lender to minimize their credit risks since the borrower will most likely pay the EMI when a significant sum is at stake. It is wise to note that PNB Housing charges a down payment of only 10% on home loans.

Although the minimum down payment amount is usually 10%, you may pay more to reduce your overall loan costs.

2. Get A Credit Check

Having a good credit score is a must to get the best home loan interest rates. For instance, if your credit score is above 800 and the loan amount is less than INR 35 lakh, you can get an interest rate between 6.75% and 7.60% on PNB Housing home loans. In contrast, if your credit score is less than 650, the interest rates may range between 8.75% and 9.60%.

Hence, you must check your credit score often and take steps to improve it if you want to get the best rates on a home loan.

3. Streamline and Rearrange Your Financial Documents

Lenders generally ask for multiple financial documents to analyze your repayment capability. The documents you may need to submit include three months’ salary slips and appointment letter (for salaried professionals and non-professionals), profit & loss statement and balance sheet (for self-employed professionals), Income Tax Returns, bank account statement, etc.

So, if you want to expedite loan approval and get the best rates on PNB Housing home loans, rearrange and keep the documents ready before applying for a loan.

4. Compare Home Loans

Besides simplifying EMI calculation, a home loan EMI calculator also enables you to compare lenders. You can check the rates offered by different lenders and enter them on the EMI calculator to see the difference in pricing. It is wise to note that PNB Housing offers some of the lowest home loan rates in the industry.

While comparing lenders, you must also evaluate their fees and charges. Some lenders may levy lower interest rates but charge a higher processing and/ or pre closure fee.

5. Use a Home Loan EMI Calculator

A PNB home loan EMI calculator is an excellent online tool to calculate the affordability of a home loan. You need to enter the loan amount, interest rate, and tenure to get an estimate of the EMI (Equated Monthly Installment). Moreover, since the calculator is free to use, you can change the figures as many times as you want until you arrive at an affordable amount.

6. Pre-approve Your Home Loan

Some lenders offer pre-approved loans after checking the borrowers’ credit score and repayment capability. They may also evaluate your savings and monthly income before informing you of the amount you can apply for.

Loan pre-approval increases the chances of loan approval to a great extent. It also allows you to negotiate the rates better.

7. Decide The Type of Interest Rate

You may opt for a fixed-rate or floating-rate loan. Fixed-rate loans are better when the interest rates are in an uptrend. Conversely, floating-rate loans are better in a declining rate scenario. Fixed-rate loan interest rates are usually 2% higher than the prevailing floating-rate loans.

Hence, before choosing a home loan, you must decide the loan type to extract maximum benefits.

Also Check: No Closing Costs Mortgages vs. Other Home Loan Options

8. Be Responsive

After submitting the home loan application, the lender may call you at any time to seek additional information regarding your loan. It is prudent to be responsive to the lender since the lender may close your loan if they do not get the required information. And, in the worst case, you may lose the processing fee or down payment amount.

Hence, stay alert until you receive the loan amount in your bank account.

9. Check the Loan Eligibility Before Applying

PNB Housing enlists the eligibility criteria on their website for the convenience of home loan borrowers. You can check the eligibility criteria to ensure you meet the minimum requirements before applying. This can not only expedite the loan approval process but also allow you to have more negotiating power.

10. Apply Online

The online mode is not only extremely convenient and seamless but might also fetch you a discounted rate. Some lenders provide a special discount to online home loan applicants. PNB Housing home loans come with a free doorstep service facility to simplify loan applications.


Now that you know the top-10 tips to choose the best home loan in 2022, use this knowledge to convert your housing dreams into reality.

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