Tips to Choose the Correct Home Loan Product
Nov 14, 2017 Home Loan
All set to buy a house! The first thing that must have crossed your mind is Home Loan. There are ample of financial institutions and banks that offer home loans. And selecting the right one for you could be a tough task. So here are some tips that will help you in sorting out this tedious task.
Banks usually offer home loans with attractive offers like interest rate discounts or EMI waivers. And there are different types of home loans as well, the basic ones being fixed and floating rate home loans. Another kind of loan that bank offer is semi fixed loans with a fixed rate of interest but for a certain duration of the loan and the loan for the remaining duration gets converted into floating rate home loan.
Home loans are also available with an overdraft facility. This means that the borrower can use the loan account as the overdraft facility which means that he or she can pay interest only for the amount being used from that account.
Here are some points for a home loan applicant to remember while choosing the best one
•Remember the flexibility factor while switching from floating interest rate to fixed or vice versa.
•The bank that takes less processing time while offering the loan.
•The loan that does not charge any penalty for making the prepayment.
•Duration of the loan, whether it is as per the borrower’s requirement.
•The loan that have minimum charges as well as zero processing fees.
Also, developers often tie-up with several banks, in order to support and avail loan easily to their customers. As a borrower or home loan applicant, one should contact and check which bank is offering a loan with lower interest rates or charges lower processing fees or is associated with lower home loan charges. Usually, banks that are associated with certain builder projects, offers loan quickly to the consumers on low interest rates and does a quick check on the customer’s background. To evaluate home loans with special offers, the borrower needs to go through the loan agreement carefully and compare them with the normal home loan products and after that, the applicant should decide the best home loan product.
Banks usually offer home loans with attractive offers like interest rate discounts or EMI waivers. And there are different types of home loans as well, the basic ones being fixed and floating rate home loans. Another kind of loan that bank offer is semi fixed loans with a fixed rate of interest but for a certain duration of the loan and the loan for the remaining duration gets converted into floating rate home loan.
Home loans are also available with an overdraft facility. This means that the borrower can use the loan account as the overdraft facility which means that he or she can pay interest only for the amount being used from that account.
Here are some points for a home loan applicant to remember while choosing the best one
•Remember the flexibility factor while switching from floating interest rate to fixed or vice versa.
•The bank that takes less processing time while offering the loan.
•The loan that does not charge any penalty for making the prepayment.
•Duration of the loan, whether it is as per the borrower’s requirement.
•The loan that have minimum charges as well as zero processing fees.
Also, developers often tie-up with several banks, in order to support and avail loan easily to their customers. As a borrower or home loan applicant, one should contact and check which bank is offering a loan with lower interest rates or charges lower processing fees or is associated with lower home loan charges. Usually, banks that are associated with certain builder projects, offers loan quickly to the consumers on low interest rates and does a quick check on the customer’s background. To evaluate home loans with special offers, the borrower needs to go through the loan agreement carefully and compare them with the normal home loan products and after that, the applicant should decide the best home loan product.
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