Taking up the home loan is easy but finding the best deal is not. With more and more options available in front of you, confusion is normal. So, what are those aspects that you must compare among the banks while taking up the home loan?
Once you have decided which house you are going to buy, the next step would be to collect the sufficient amount of money. The first option that would come to your mind is taking a housing loan, which is reliable as well.
But, choosing the right bank can be daunting, thanks to the innumerable banks and the lending institutes that are ready with their services to lure the customers like you. Here are some of the characteristics that you would have to compare if you want to get your hands on the best deals.
The loan of the amount will highly depend on your income. Usually, you can get 80-85% of the value of your property as a loan amount. But, in some cases, it can also be 90%. Depending on your income, if you are getting lesser amount from one bank, then you might get a bit high from another. Hence, compare the amount that you would be getting.
Rate of Interest-
The interest rate is the first thing that you should consider because it will hugely influence your EMI. Compare the banks for the interest rates that they are providing and select the one that suits your requirements. Also, before selecting the interest rate, find out whether it is floating or fluctuating and choose the one that you can easily pay.
There are some of the extra charges as well that the banks demand, like the processing fee, prepayment charges, etc. The processing fee of the loan can be from 0.25% to 2% of the loan amount. And, as far as the prepayment charges are concerned, then some banks charge it, and some don’t. Shop around and grab the best deal.
You must choose the bank that would give you the best services, not before but after sanctioning the loan as well. Also, you can judge the bank on the basis of the time taken in sanctioning and disbursement of the loan. Select the bank that knows its job and has a strong system.
The hidden charges can create a big hole in your pocket. Most of the time, people don’t pay much heed to the hidden charges, and then regret when they have to pay more. To know about these charges, you must contact the bank directly and ask them if at all there are any hidden charges or not.
Comparing the banks might take a lot of time but it is totally worth it. While taking up the housing loan, don’t forget to shop around and compare the banks on the basis of points mentioned above. Choose the one that has credibility and is known for its good customer service. You can use online marketplace that has all prominent banks at one place to compare and select the right bank for your loan.