3 Tips to consider when you choose home loans in India
Your home is more than just a place to live in. It’s a piece of land being tailored as per your needs and reflects your personality. Owning a dream home is a top priority for every individual in India. When you plan to purchase your home it requires a lot of planning, spending several hours in determining the budget, property documentation, amenities, commutation, area safety and finally scouting on the best home loans in India. There a lot of things to consider while taking home loans such as interest rates, processing fee, principal amount, home loan EMIs, etc. Basically, you should aim to get the desired loan amount and the EMIs should be affordable on your wallets.
The market for home loans in India is quite geared up because of aggressive advertising through banks and financial institutes. You can see eye-popping TV commercial ads, hoarding, bus backs, social media ads, etc. wherein lenders are willing to offer the best home loans with competitively low-interest rates and nominal processing fee. Through online facilities, it’s quite easy to apply for a loan right from the comfort of your rental home or office. Aggregator sites have done your job all the easier, as they let you compare quotes of several top banks and financial companies to take a wise call.
Here are some valuable tips to buy the best home loans in India:
Comparing loan will help you understand how much you can afford and what would be an average rate most of the lenders will offer you. You will get the best possible deals under a single roof. You can compare quotes in terms of interest rates, processing fee, pre and post charges, repayment fee, discounts, benefits & features, etc. It’s important to do good research on the current home loan interest rates in India, their types and impact on your financial commitments. Online calculators will give you a complete idea on what would be your interest outgo and your EMI through the loan tenure.
Read terms and conditions
Lenders can have a lot of hidden charges, clauses, and conditions. In your quest to avail finance, you might tend to ignore things, but it can turn out to be a big loss. It is therefore important to clear about all the charges like service charge, GST charges, prepayment or foreclosure charge, etc. Enquire about different form of penalties on your loan amount.
Maintain good CIBIL score
Lenders will verify your CIBIL Score based on which your principal amount and interest rate would be determined. CIBIL stands for Credit Information Bureau India Ltd. and displays your prior repayment history, any defaults, etc. The errors in your report can reduce the chances of getting a good deal or might be a cause for loan rejection. So, try and clear all your dues before you plan to apply for home loans in India.
Since you’re going to avail a loan, it’s one of the biggest financial commitments of your life. Unfortunate incidences won’t intimate you beforehand, so you should be prepared to combat such a
situation. It’s better to buy an insurance policy worth your property value so that if you don’t survive due to any unfortunate conditions, your family doesn’t have to face the brunt of EMIs. A term plan can be the right choice because the premium is quite cheap and the benefits are great.
Follow these simple tips and apply for best home loans today!