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Which City is the Most Affordable for Home Loans in India?

The affordability of a city for home loans depends on a number of factors, including the cost of property, the interest rates on home loans, and the average household income. In general, the cities with the lowest cost of property and the lowest interest rates on home loans are the most affordable for home loans.



According to a report by Knight Frank India, Ahmedabad is the most affordable city for home loans in India, followed by Pune and Kolkata. The report's affordability index is calculated by taking into account the EMI-to-income ratio for an average household. In Ahmedabad, the EMI-to-income ratio is 23%, while in Pune and Kolkata it is 26%.


The EMI-to-income ratio is the percentage of a household's monthly income that is spent on their home loan EMI. A lower EMI-to-income ratio means that the city is more affordable for home loans.


The following table shows the most affordable cities for home loans in India, according to the Knight Frank India affordability index:


City EMI-to-income ratio

  • Ahmedabad 23%

  • Pune 26%

  • Kolkata 26%

  • Jaipur 27%

  • Lucknow 28%


The following factors make Ahmedabad, Pune, and Kolkata the most affordable cities for home loans in India:

  • Low cost of property: The cost of property in these cities is lower than in other major cities in India.

  • Low interest rates on home loans: The interest rates on home loans in these cities are lower than in other major cities in India.

  • High average household income: The average household income in these cities is higher than in other major cities in India.



If you are looking for an affordable city to buy a home in India, Ahmedabad, Pune, and Kolkata are good options. However, it is important to do your own research and compare the affordability of different cities before making a decision.


Here are some other factors to consider when choosing a city for a home loan:

  • The job market: Make sure there are enough jobs in the city to support your income.

  • The cost of living: Consider the cost of food, transportation, and other expenses.

  • The quality of life: Think about the schools, hospitals, and other amenities that are important to you.

Once you have considered all of these factors, you can start to narrow down your choices and find the most affordable city for your home loan.


However, remember that the affordability of home loans is not solely determined by the city; it depends on your financial situation, creditworthiness, and diligent research to secure the best deal. Always consult with financial experts and conduct thorough market research before making any significant financial decisions related to buying a home.



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