How To Ensure You Get The Most Affordable Home Loan In India

Home loan can be defined as a type of loan granted to person to aid him in buying a flat or house. In India, currently there are more than 50 lenders who offer home loan to people. So, it is obviously difficult to decide whom to prefer or how to decide which loan will match your requirements as well as be affordable at the same time. Given below are some points which you may consider to get an affordable home loan in India.

* Looking for affordability does not mean that you have to opt for a loan with the cheapest rate of interest. The affordability of the loan can only be finalised after considering the other aspects of the loan and viewing it as a complete package.

* Given a choice between a floating or fixed rate of interest, always prefer the former as usually the latter comes with a foreclosure penalty. Moreover, if you get lured by an attractive rate offer and opt for a fixed rate you will notice that after the completion of the fixed term the rate changes.

* To ensure that you get the best home loan in India it is always advised to prefer a lender offering daily reducing balance over monthly. While making a partial repayment, the case with a monthly reducing balance plan is that if an amount is partially closed between two EMI dates, the repayment is considered only from the next EMI date. This means that you end up paying interest even on the repaid sum for those days.

* Make sure that you ask for advice from your bank relationship manager, chartered accountant, wealth manager, tax planner and finance controller before finalising your mortgage broker.

* Ask your mortgage adviser to provide you with a comparative analysis of the products of at least 6 major lenders. Instead of just considering the home loan interest rate also focus on the base rate, margin offered, the number of times the lender has reduced rate in past two years, maximum tenure offered, factors depending on calculation of eligibility and whether the lender has funded a property similar to yours earlier.

* The best home loan in India must make its facilities available in all Tier 2 and 3 cities across the country. This also reflects it affordability and is an important point to consider when looking for an affordable home loan.

* Quick and easy documentation process, disbursement process and verification are also something you should look out for when planning to apply for a home loan as a hassle-free smooth process always saves your time and money.

* Rather than preferring age-old clichéd products try your hand on new-age products. They often tend to offer better deals in comparison to traditional home loan products.