Taking a home loan is a very important decision for an individual, along with purchasing the property. Home loans should be taken care of by the right lender as later; it should not cause any problem to the borrower. The borrower should check with the reviews of the lender and accordingly should decide on the choice of the lender. Choosing the wrong lender can lead to shelling out more money as hidden charges to the borrower. Loans can be taken from any of the lenders; it is not necessary that the applicant have a bank account in a particular bank to take the loans from them. The applicant can check for the interest rates charged by the lender on the finance portal website before applying for the loans. The loans are charged in any range from 6.50% per annum to as high as 18% per annum. Thus there is a drastic difference between the interest rates being charged by the various lenders. The interest rates are based on the repo rate, which the RBI decides; however, some lenders continue to charge higher interest rates on the home loans as they have a liberal approval policy towards the sanctioning of loans.
The applicant of the loan should check for the terms & conditions thoroughly before signing the loan agreement. The words written in the small fonts should especially be read carefully as the chances of getting misled is high in case of the agreement with certain words in micro-font. The borrower should make a list of a questionnaire for the list of questions to be asked to the bank officer before the loans’ sanction and should confirm that the same things are mentioned in the agreement. The loan tenure approved maximum is 30 years, but the actual tenure of the loan depends upon the borrower’s age. The maximum limit up to which the loans can be approved is Rs.3 crore. The sanctioning of the loans depends upon the salary of the borrower. The EMI calculator helps to know the eligibility of the loans for approval. The installment to be applied should be checked before the approval of the loans. The installments chargeable on a particular amount of loans can also be checked on the EMI calculator.
Following are the questions which are required to be asked to the banking officer before taking the home loans:
- According to my salary, how much loan am I eligible to take?
- According to my age, how much tenure for the loans can be offered to me?
- What are the best interest rates which you can offer to me?
- What would be the due date for the payment of the loans?
- How much will I have to pay you the repayment value along with interest for the loans?
- Does your bank charges a pre-payment penalty on the loans? If yes, how much?
- If the pre-payment charges are not applicable, then, in that case, does the bank provide a rebate on the loans?
- What is the penalty being applied in case of the delay in payment of installments?
- Are there any hidden charges beyond the ones like processing fees & interest repayment?
- How much would be the processing fees being applicable?
- What are the multiple payment options being available for the repayment of the loans?
- How much tax benefit can I avail of on the loans in case of obtaining loans?
Thus asking the following questions is necessary for the approval of the loans. There could be multiple other questions that may be asked to the bank official in case of availing of loans. The applicant should verify all the details thoroughly and confirm the same, which should be mentioned in the agreement.