Home Loan
Home loans are provided based on the market value, mainly estimation given by banks or the registration value of the property. Availing various types of house loans to suit your individual needs at the lowest rates & easy financing can now fulfill the need for a house of your own.
Home loan is not a one-time decision; do review the market periodically before availing them. Today there are unlimited numbers of banks in the country wanting to give out Home loans. Given this scenario, it may seem easy getting yourself a loan. But is it really??
Buyers tend to make mistakes while entering into deals, which may not be beneficial for them, so better compare all the variables before signing a loan agreement by different banks. However the loan agreement should be finalized only after reading the terms and conditions carefully.
You can apply for a Home loan even before you select your property. The loan amount would be sanctioned or approved for you, based on your repayment capability.
Features of Home loan:
• Purpose: For purchase of house from builder / resale and construction / extension of existing house.
• Loan amount: You can avail for Home loans ranging from Rs.2 lac to Rs.200 lac depending on your eligibility, income and repayment capacity.
• Security: Home loan is a secured loan wherein collateral are required.
• Loan tenor: The maximum loan tenure is 20 years.
Document required
Most importantly, all deals and offers agreed upon are supported by relevant papers. Self employed and salaried require different documents to support the deal.
So make sure you always ask for a letter on the banks letterhead mentioning the likes of, exact rate of interest, processing fees, pre-payment charges along with interest-schedule.
Before signing the documents, make sure you recheck all terms and conditions.
Do make sure you understand and agree with each of the clauses in the documents. Do not sign any blank documents. Even if it takes you a few hours to fill-up the form, please do so.
Do not leave anything for the executive to fill-up. It’s always better to get a legal opinion from someone on your loan papers.
Do not under any circumstance give any false information. This may amount to fraud and could land you in trouble.
Penalties Once you have received the loan do your best to pay it back as quickly as possible. But this early payment might invite a pre-payment clause.
Banks make their money off the interest they charge and the sooner you pay back a loan the less money you will have to pay in interest. When it comes to Home loans, penalties are binding, like if you chose to pay up your entire money before the tenure, a Pre-payment penalty is charged. So you should know about such penalties beforehand to avoid future misunderstanding between you and the bank.
ICICI Bank home loan information