Choosing the best housing loan in India can be a tough task, as every lender offers a host of benefits. Nonetheless, one can look out for some factors and decide accordingly to avoid facing any difficulties during repayments.
Here is a list of factors to consider before applying for a home loan –
1. Compare the interest rate
Since home loans are a long-term financial commitment, any changes in the interest rate can significantly affect its repayment. Therefore, it is ideal for reviewing and comparing it before making a decision. Borrowers can take the assistance of various online calculators to check the total outstanding amount depending on the rate and then proceed accordingly.
Besides the housing loan interest rate, one should also review the type of interest, i.e. fixed or floating; they are applying for.
2. Find the EMI beforehand
It is ideal to find the instalment beforehand as it helps prepare repayment better and avoid mistakes. Individuals can use the housing loan EMI calculator to find this information within an instance and then plan accordingly.
3. Mind the additional charges
Every housing loan application entails a handful of additional charges like legal fees, processing fees, pre-payment charges, etc. Not considering them can amplify the total cost of borrowing; thus, borrowers should note them.
4. Opt for a suitable tenor
To make the repayment of a home loan easy, an applicant should opt for a tenor that suits repayment capacity. For example, a longer tenor may reduce the EMI, but it will increase the total cost of borrowing and vice versa.
Keeping these pointers in mind can aid individuals to find a loan offer that meets their convenience.
Read Also: Major Challenges Faced while Applying for Housing Loan
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