Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Basis to Choose Home Loan Tenure
Choose a long loan tenure if eligibility is a problem and which has low EMI and less por no pre-payment penalty chargesApnaloan.com Research Bureau
10 Aug 2007
How should I choose tenure?
If loan eligibility is a constraint, go for the longest possible tenure (some banks allow 25 years though most banks allow only up to 20 years). The maximum tenure is also restricted by your age at the end of the tenure. Thus, a 45 year old person cannot get a 20 year loan-since he will be long past retirement by then. So, he will be eligible only for a 15 year loan. However, if he is self-employed- then the bank may consider a 20 year loan since retirement age for self employed people is assumed at 65 by most banks.
Most people in their anxiety to pay off the home loan as quickly as possible, take on a longer than warranted EMI burden by restricting tenure.
Even if loan eligibility is not a constraint, you should opt for as long a tenure as possible with a no prepayment penalty option. This way you retain the flexibility of low EMIs and at the same time you can pre-pay the loan whenever you have surplus funds.
Subtract the existing loan amount from the total loan amount and that will be the amount of second loan you are eligible for.
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