A home loan is a long term relationship with you and the lender, usually the bank.

Taking a first home loan could be a long-term commitment for you and hence, you need to choose it wisely. A first home loan could be your big leap in life and hence, you need to take it forward with proper consultation or talk with your family and friends. 

The commitment could last for another 10 to 20 years or even more (depending on the amount).

As a first home loan, you might fear that 25% to 50% of your monthly income may go in repaying this amount and hence, one might feel it as a hard and difficult move while buying a new home.

How would I repay such a huge amount? How much will be my EMI? Will I be able to survive during the loan repayment?

The first home loan is something almost everyone is doing today and it’s for your own betterment and progress, isn’t it?

With a better plan and advance preparations, you can easily enjoy this period.

Getting the ownership of your home after the loan period is over is going to be a winning moment for you and your family.

Saving more for a higher down payment will help you borrow less amount from the lender, crunching your EMI to be lower. You will have to save around 3 to 4 years prior you apply for your first home loan.

To make your ‘getting a home loan’ journey safe and sound, first of all, prepare the list of documents below:

  • KYC Documents
  • If you have a business, prove your establishment with a shop license, gumasta license, partnership deed etc.
  • If you are having a job, show your income with saving bank account statement for the last 9 to 12 months, P&L Statement, Income tax return Sanction letters of any loan contracts of which a long due balance is remaining.

They say ‘nothing ventured is nothing gained’. Yes, you will have to try and take your first biggest risk to get a home in your dreams.

So why taking your first home loan is not that scary? Let’s have a look..

Easy to understand terms & conditions

This is the most important step while taking your first home loan. Although terms and conditions to avail a home loan for the first time buyer today are very easy to understand and digest, you still need to be very thorough with these. As a first time buyer and applicator for the loan process, you need to understand every term and condition related to tenure, interest rate, repayment benefits and much more.


Interest rates are of two types viz. Fixed Interest Rate & Fluctuating one. The interest rate would be the same for the entire loan tenure when you choose a home loan with a fixed interest rate. It becomes easy for you to manage your finances for the next 10 to 20 years as the interest rate will be the same.

Suppose you get a home loan at 10.50% P.A. and manage to repay the EMIs in time, after a certain period of time, some lenders will allow you to enjoy the benefits of a variable or floating interest rates too. But the problem with a fixed-rate loan is that you may have to pay more even if the interest rate decreases.

The fixed interest rate sometimes comes with a reset clause. You will need to check this clause with your lender or bank.

Easy repayment options

  1. A home loan with a delayed start of EMIs
  2. Home loan by linking idle savings in a bank account
  3. A home loan with increasing EMIs
  4. A home loan with decreasing EMIs
  5. A home loan with a lump-sum payment in an under-construction property
  6. A home loan with longer repayment tenure
  7. A home loan with a waiver of EMI

These options have their own dos and don’ts and you can easily figure out which one to opt for contacting your bank personnel.

Transferring the loan

Not just the first home loan takers but everyone is relieved with an interesting fact here. If you are not satisfied with the current lender, you can easily transfer your home loan to another lender. Also known as refinancing the loan, this feature also allows you to get the benefits of lower interest rates if applicable.

To get your home loan approved in the stipulated time, you should look for a RERA approved real estate project, a well-known brand and maintain your credit score optimally.

If you are looking for a home in a decent location with complete loan assistance, visit Kasturi Housing and explore the finest real estate projects in Pune.