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.
Loan defaults What happens next?
Late EMI payments, home loan defaults-what nextPooja Gawde
18 Feb 2008
In the recent years, especially in 2006 and 2007 there have been frequent revisions in interest rates on home loans, with the rates climbing only higher and higher.
While EMIs have almost doubled, loan tenure have extended almost 5 years to 25!
The borrower now is bearing an increased cost of being a "proud house-owner" - reeling under the impact of hiked rates. But proud.
In any such event, you might one day find it difficult to pay your home loan EMIs on time. Due to several reasons. For instance, the EMI has increased unexpectedly to an unsustainable high, which is a hard hit on your personal budget. Or worse, you've lost your job!
Lenders have their own interests to protect. You will have problems making your lender understand why you are not punctual in your EMI payments. But losing your cool is the last thing that will help. So,...how do you do this?
It is all-important to convince the bank on the reason (s) for the defaults. Concrete facts, rather than vague statements will give the bank a clearer picture. Which means avoiding statements such as "I can't pay the EMI due to some unforeseen circumstances."
Documents supporting the unfortunate event (s) that ultimately led to the EMI defaults will convince the bank a lot better than just your verbal accounts. Show a copy of your job termination letter or bank statements showing losses incurred in business.
Next, provide an estimate of the time period you may face the crisis. If the bank is assured that the loan can be recovered, it will definitely try to put forth a plan where both your interests are protected. All this accomplished without having to take extreme measures on the bank's part, such as sending recovery agents over or a distress sale of your home.
If it is a short-term crisis, the bank might agree to work out a deferred repayment plan in lieu of a fee or collateral security. Meanwhile, dig into your savings to keep afloat while you make alternative arrangements to meet your financial requirements.
If it turns out to be a long-term financial crisis and the savings are dipping drastically, the solution is to sell the house. You will need your lender's consent to sell. The bank will give a document stating its approval for the sale as well as facts relating to the loan. Based on the letter, you can negotiate with potential buyers. You can sell the property after pre-paying the loan and the loan foreclosure charges. Click here to learn how to do this.
This is a much better option than the bank-imposed distress sale. Remember, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act empowers the bank to take possession of the property that is mortgaged to them, to recover the loan outstanding from the borrower.
Having a rented roof over one's head is more bearable than seizure of one's property.
The whole situation is always very distressing. A little extra effort on your part may save you from this trouble: an insurance product to guard yourself against the risk of becoming a loan defaulter and losing your home. Banks these days offer insurance products bundled with the home loans.