Home Loans: How To Decide Which One Is Best For You?

It has never been as easy to invest in a property in India than at present. With the increase in home financing options, the buyers may get confused about which bank or private funding company to sign up with. Some home loan tips first-time buyers must consider are comparison between the interest rates, loan amount eligibility and prepayment options, etc. that the different institutions are offering.

If you are looking for the best financing option while buying upcoming apartments in India, it might do you good to keep these factors in mind while selecting:

1. Loan percentage on offer: Before you actually decide to make an investment, you would have probably calculated the financials involved. Based on this figure, you would be in a position to fix a loan amount. While you may be able to get a higher loan percentage when comparing between banks, you must also keep in mind that this could have an impact on the EMI as well.

2. Compare home loan rates and other charges: It goes without saying that most people tend to pick the loan where the interest rate is cheaper. Nevertheless, do remember the old saying “cheaper is not always better!” When comparing different home loans for apartments in India, it is necessary to choose one that offers the best in terms of interest rate, prepayment charges, as well as processing fee.

3. Speed of disbursal: One of the most important home loan tips in India would be to consider the time taken for the loan process to be completed. Since this is a cumbersome process involving submission of several documents and approval, it would be in your favour to choose a bank that speeds up the loan disbursal. It has been seen that often the online home loans tend to be resolved faster than the traditional method.

4. Shopping for loans: Investing in a resale apartment in India might mean that you need to do some window-shopping for the best home loan schemes on offer. Not only does it place you in a position to negotiate, it also lets you get the maximum benefit out of the deal. One such deal is opting for home loan insurance along with the home loan to protect your family from liabilities after your demise. Add all these parameters to your home loan calculator and you will arrive at the best deal for you.

5. Availing special concessions: Did you know that some banks offer special concession schemes for home loans taken by women and senior citizens? Also, you may be able to get a higher loan amount if the loan is taken in the name of two family members.

Finally, before you actually sign on the dotted line, look around for feedback from other customers who have used the services of the bank you settled upon. With the internet as your best friend, you can easily access the customer reviews and ratings of banks. It would also help to check the past base rate trend of the bank to know about its policy on rate changes.