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.
Guarantee stands even if revoked by loan guarantor
Guarantee stands even if revoked by loan guarantorApnaloan.com Research Bureau
01 Apr 2008
The Supreme Court of India has reiterated through a decision that a guarantor cannot back out of the loan commitment once made.
A guarantor, Sita Ram Gupta, filed a case citing Section 130 of the Indian Contract Act which provides for revocation of guarantee by prior notice to the creditor. Gupta was asked by Punjab National Bank to pay up the decreed amount of Rs 42,874, including interest at the rate of 19.5 per cent per annum.
The loan was taken in 1980. Gupta cancelled his guarantee through a letter dated July 31, 1980. He said that he was not liable to pay the loan as the guarantee was withdrawn. He cited Section 130 of the Indian Contract Act which provides for revocation of guarantee by prior notice to the creditor.
The clause relating to the loan guarantee and the loan guarantor is included in the fine print which reads, 'The guarantor hereby guarantees... to pay the bank on demand all principal, interest, costs, charges and expenses due and which may at any time become due to the bank from the borrower down to the date of payment'.
The agreement stated that 'the guarantors hereby declare that this guarantee shall be a continuing guarantee and shall not be considered as cancelled or in any way affected...'
Based on the clauses mentioned above, a decision was taken that Gupta is liable to pay the debt.
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