Friday, April 20, 2018

How to Decide Which Bank/NBFC is Giving the Best Home Loan Deal






Do you plan to buy a new home this season? If you need a Home Loan for that, you have a wide range of options to choose from. These would include banks, non-banking financial companies (NBFCs), and housing finance companies (HFCs).

Even before you choose your property, it is better to look at the right kind of housing loan. But first, you must figure out whether you are eligible for the loan. Here are some quick tips to help you know your eligibility for the best Home Loan deal.

  • Ensure that your credit score is in good shape. A strong, healthy CIBIL score will give you greater bargaining power when you apply for a loan.
  • Know as much as possible about the prevailing Home Loan rates in the market. 
  • A good way to get quicker disbursals with lower rates is to get a preapproved housing loan. Your Home Loan application has a better chance of being accepted with a preapproval. 
  • Compare the rates and fees the various lenders are offering and pick the best option.
  • Read the fine print, which is not always present in the brochure. Ask various lenders about the fees and costs beyond the principal and the interest. Ask anything that is relevant to your Home Loan need.
  • Use the equated monthly instalment (EMI) calculator for every Home Loan you shortlist. The Home Loan EMI calculator is an extremely handy tool. It gives a basic insight into the monthly EMIs you will have to pay. It is based on the principal, the interest rate, and the tenor.




So, How would You Decide Which Bank or NBFC would Offer you the Best Home Loan Deal?


Choosing the right bank or NBFC is not only about getting the lowest interest rate. More importantly, you should deal with the best lenders in India. They would have Home Loan experts to guide you through the procedure.

  • Select your Lender: Look for one who offers you several Home Loan options. Look at a broad spectrum of funds, not only from banks but also NBFCs, HFCs, and wholesale lenders. Learn in detail about their lending history, how they operate, and about their continuing services once you pay off your loan. The right lender will not only help you save time and money but also help you dispel doubts about your lending needs. 
  • Interest Rates: Fixed Home Loan interest rates give you the satisfaction of being aware of your repayment amount for a definite period. Moreover, the rise and fall of interest rates in the market does not affect the fixed rate. But, you will not enjoy the flexibility of a variable rate of interest. Hence, you must know what kind of interest rate would suit you in the long run.
  • Charges and Fees: Do you have to pay any continuous fees or charges? Figure out their effect. Hidden fees, which are usually seen in the form of monthly and annual charges, can greatly influence the cost of your Home Loan.
  • Pay Close Attention to Margins: Lending institutions have the right to alter the mark-up rate at any time, without prior information to borrowers. In fact, they use specific determinants to advocate this change in rates. These determinants include the competition rate and the intent to gain more consumers or market share. Mark-up rates can go either up or down. Hence, when you apply for a Home Loan, make sure you know about the current changes in the mark-up rates. 

Conclusion


Applying for a Home Loan can be an arduous task. It can become much simpler when you are aware of your eligibility and the prevailing interest rates before you apply. Your chosen lender should have a comprehensive choice of Home Loan products. They must also provide regular loan health inspections to make sure you have the best product tailored to your needs.


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