Although it has become quite easy to avail a home loan in India,
one should be careful while choosing the best one thereby saving money on the
interest rates. With a lot of important features like lowest fixed and floating
interest rates, availability of prepayment option, special concession for women
and senior citizens etc it is easier for individuals to save money.
With a number of private financing institutions and banks offering flexible interest rates with various budget options, it has become quite simple to apply for a home loan. With every year these banks come up with new schemes, so it is advisable to consider your options. We give you a few ways below to save your money while availing a loan.
Check the percentage
of loan offered- Banks offer varying percentage of the total outlay require
to purchase a home, so if you have one bank offering you 80%, check for one
which will give you 85%. This will help you reduce the amount of down payment,
however, keep in mind that consequently your EMI would go up.
Analyze the interest
rates and prepayment charges – Check for loans that offer you free
processing or lesser EMI, lesser prepayment charges to save your money. In case
of floating interest rates, banks cannot charge a prepayment penalty to borrowers.
Consider the process
and time involved – Loan disbursement process is quite long a tedious job involving
multiple documents related to income and property. Research a little and decide
on a bank that has a simpler process and offers you a better deal.
Check for Special Concessions or
offers- Many banks offer you special concessions or offers like lower
interest rates for women, or senior citizens, EMI holiday etc. check if your
bank has any such offers and avail them to get maximum benefit.
