The loan is an essential part for an individual while purchasing the house. Home loans help individuals buy their own house at an early stage without having sufficient savings in the bank account. The applicant has to pay just 20% of the flat amount as a down payment, while the rest can be availed as loans from the lender. Thus choosing the right lender is very much important. The applicant can avail of loans for a duration as high as 30 years depending upon the age of the applicant; thus, the borrower, once availing of loans, has to deal for a long duration of time for the repayment of the loans. Thus choosing the right lender is very much important. The applicant can choose a lender as a bank or an NBFC for the fulfillment of loans. Thus before availing of the loans from the lender, the borrower should do a thorough background check of the lender before the approval of the loans. There are multiple ways in which the lender may get mislead; thus, the lender should be the right ones. The reviews of the lender should be checked before availing or approaching for the loans.
The lender should read all the documents of the terms & conditions carefully before the approval of the loans. The interest rates charged by the lender can be compared with another lender on the internet. The loans interest rates can be compared on the finance websites wherein all leading banks’ interest rates are given. Banks also charge processing fees of around 0.5-2% to an individual as the bank incurs some cost in processing the home loan application. The bank or an NBFC which charges the lowest processing fees and interest rates should be given preference. The bank charges a penalty on the delay or default of payments. Thus terms related to the penalty charged against the delay in payments should be known by the applicant. Also, the repayment amount mentioned in the agreement should be checked and verified on the EMI calculator of the bank so that the customer does not get cheated with the wrong value being mentioned. It is also better to check the lender’s financial performance to know whether the lender is stable or not. If the lender is financially unstable, then, in that case, if the bank or an NBFC closes down, it can become problematic for the borrower as the borrower has to mortgage the documents of the property to the lender till the duration loans amount is not repaid.
Benefits of choosing the right finance company for the home loans:
- Low-interest rates & processing fees
The interest rates of the bank are related to the Repo rate of the RBI. But still, the interest rates vary according to the lender. Thus the interest rates can be compared on the finance websites, and accordingly, the loans can be availed at the lowest interest rates. The applicant is free to avail of loans from any lenders even without a bank account. Thus the borrower can avail of loans from any of the lenders. Also, the same applies to the processing fees of the bank. The lenders charge 0.5-2% as processing fees to the borrower. Thus the processing fees also should be preferably low of the lender charging lower interest rates.
- Trusted lender
The reviews of the lender should be verified before the approval of the loans. Choosing the right lender can help an individual from getting mislead and thus can save from the hidden charges being charged by the lender. Thus the background verification of the lender is very much necessary.
- Liberal terms for repayment
The lender can charge a penalty on the early repayment of the loans. At the same time, some lenders may provide a rebate to the borrower for the early repayment of the loans. Thus the lender should be such that who will provide a rebate on the interest for the early repayment, which can help an individual become early debt frees.
- Good quality customer experience or service
Some and very few lenders are concerned about the after-sales service for the customers who have availed of loans. The lenders may take feedback from the borrower for the customer experience and work accordingly to improve the customer experience. Also, the banks may provide a home pick-up facility for the monthly loans installments payment. Also, the borrower can pay through an online facility being made available so that the customer can repay loans installment from the convenience of the home without wasting time to reach the bank branch for the payment of the loans installments. Thus a good user experience matters a lot in the case of the lender.
Choosing the right lender is very much necessary as the borrower has to deal with the lender for a long duration of time till the repayment of the loans. Also, the terms & conditions should be checked properly and also the reviews about the lender.