Get a good deal on your home loan
Get a good deal on your home loan Ashish Gupta, ET Bureau Points for your checklist A house is bought using a home loan, with a certain port...
https://iskablogs.blogspot.com/2010/06/get-good-deal-on-your-home-loan.html
Get a good deal on your home loan
Ashish Gupta, ET Bureau
Points for your checklist
A house is bought using a home loan, with a certain portion being financed out of own resources of the borrower.
There are a number of banks and housing finance companies in the market offering various products.
It is advisable for a borrower to note down his concerns and then compare these across the board before taking a final decision on whom to borrow from and how much to borrow.
As a preliminary step, one may prepare a checklist covering these areas. Other areas of concerns may also be added.
While discussing with the prospective lenders, this checklist will come in handy to make a good comparison and take a final decision.
Purposes for which the loan is available - purchase of plot, construction, or for both.
How and when the disbursement will take place Documents needed. Who can be co-applicant.
What is the time taken or sanction, disbursement of loan.
Generally, a bank takes 10-15 working days. Maximum loan the bank is ready to disburse.
How and when the recovery through EMIs starts. In case of change in interest rate, how an adjustment in EMI will be made for interest reduction or early principal repayment.
Method of calculating interest rate - daily or monthly reducing.Is a guarantor required. If yes, who can be a guarantor and documents required from him.
Will the loan disbursement be made in phases depending on progress of construction or in one lump sum. Legal verification fee payable.
Rate of interest and effective rate of interest. Effective rate of interest should be taken for a comparison.
Commitment charges payable. Processing charges payable.
Procedure for switch over from floating to fixed rate or vice versa. The attendant conditions applicable and corresponding charges payable.
In case of purchase of land and construction loan, will the bank sanction separate loans or a composite loan.
Amount of EMI. Mode of payment of EMIs.
Free or concessional insurance on the loan offered.
Prepayment terms These questions constitute a preliminary checklist only.
This list is not exhaustive. One may add any number of additional points.
This will help in comparing and negotiating with the banks to get a good deal.
SOURCE;THE ECONOMIC TIMES
YOU MAY NEED THIS
PLANNING FOR YOUR FUTURE
DECIDE BEFORE GETTING HOUSING LOAN
HOUSE BUILDING ADVANCE
Ashish Gupta, ET Bureau
Points for your checklist
A house is bought using a home loan, with a certain portion being financed out of own resources of the borrower.
There are a number of banks and housing finance companies in the market offering various products.
It is advisable for a borrower to note down his concerns and then compare these across the board before taking a final decision on whom to borrow from and how much to borrow.
As a preliminary step, one may prepare a checklist covering these areas. Other areas of concerns may also be added.
While discussing with the prospective lenders, this checklist will come in handy to make a good comparison and take a final decision.
Purposes for which the loan is available - purchase of plot, construction, or for both.
How and when the disbursement will take place Documents needed. Who can be co-applicant.
What is the time taken or sanction, disbursement of loan.
Generally, a bank takes 10-15 working days. Maximum loan the bank is ready to disburse.
How and when the recovery through EMIs starts. In case of change in interest rate, how an adjustment in EMI will be made for interest reduction or early principal repayment.
Method of calculating interest rate - daily or monthly reducing.Is a guarantor required. If yes, who can be a guarantor and documents required from him.
Will the loan disbursement be made in phases depending on progress of construction or in one lump sum. Legal verification fee payable.
Rate of interest and effective rate of interest. Effective rate of interest should be taken for a comparison.
Commitment charges payable. Processing charges payable.
Procedure for switch over from floating to fixed rate or vice versa. The attendant conditions applicable and corresponding charges payable.
In case of purchase of land and construction loan, will the bank sanction separate loans or a composite loan.
Amount of EMI. Mode of payment of EMIs.
Free or concessional insurance on the loan offered.
Prepayment terms These questions constitute a preliminary checklist only.
This list is not exhaustive. One may add any number of additional points.
This will help in comparing and negotiating with the banks to get a good deal.
SOURCE;THE ECONOMIC TIMES
YOU MAY NEED THIS
PLANNING FOR YOUR FUTURE
DECIDE BEFORE GETTING HOUSING LOAN
HOUSE BUILDING ADVANCE
