It is often stated that obtaining a dream residence needs substantial expenditure for most of the investors. Some persons devote a long period of time, garnering their savings to fulfil this dream, whilst other people opt to take a loan (credit) to fulfill this dream.
Getting carried out your self assessment about the repayment capacity, place of your dream household, amenities and other fancies that you would like your dream property to have. It is time for some serious exercising of deciding on your HFC.
Choosing a HFC calls for intense care and correct consideration, and hence following the under-pointed out pointer will make this exercise a lot easier. Past record of such institutions need to be adequately checked as it will be a long term partnership among you and institution. Make sure that the whole activity does not end up becoming a complete day headache or nightmare for you, hence prudent steps even though deciding upon the financer.
1. Price of interest
This is exactly where it all starts. Though the price of interest provided by most HFCs is more or less the identical on paper, some degree of bargaining in most instances, leads to a lowering of rates by as much as .25 to .50 percentage points. Macropay Scam so if your profile takes place to match the requirement of the HFC. The lowering of interest price has a important effect more than the long term though the distinction is not so noticeable more than the near term. For instance, a .50% interest price ‘concession’ on an Rs 1,000, 000 loans over 20-year tenure will reduce your liability by upto Rs 72,000. But care demands to be taken to ensure that the difference is not getting offset elsewhere by the HFC below the guise of other ‘charges’.
One must also be careful about teaser price provide, as they are at times genuinely teasing. They benefit you for a short-term – say couple of years (till the fixed interest rate tenure), but later as floating price begins applying they dig a bigger hole on your wallet.
2. Calculation of the exact property loan quantity
Here, HFCs differ in their calculation of the loan amount to be disbursed. Some HFCs calculate the quantity to be disbursed on the basis of, say, the gross salary although some HFCs calculate it on the net salary. This might make a difference to people as the loan amount and the EMI will differ across HFCs. A single desires to appear into this and get a comparative evaluation carried out across HFCs, to fully grasp which HFC gives the greatest deal. Also one particular really should verify whether the HFC is offering pre-EMI and tranche based EMI repayment selection. This will assist one particular while taking loan for an under building home, as this gives them an alternative to pay interest only on the portion of the loan disbursed or to opt for the instalments they want to spend, till the time the house is prepared for possession.
three. Following-sales service
And you thought just after-sales service was synonymous only with consumer durables! No – it applies to virtually all the things, and so also applies to HFCs. In fact, it is pretty essential though picking out an HFC. An HFC can differentiate itself with fantastic just after sales. Take the instance of post-dated cheques (PDCs). It is common practice to give 36 PDCs through the time the loan is disbursed. It is after 36 months are over that right after-sales will play a role. How diligent are the HFC’s follow-ups? Are they prompt? Are reminders timely? In addition, in the course of the economic year-finish, the HFC should really be punctual in providing the borrower interest paid certificate (components of interest and principal quantity paid in the financial year) so that he can file the needed documents for availing tax benefits (below section 24b and 80C of the Earnings Tax Act) on home loans.
four. National presence
The HFC must be present across the country or at least have branches in all key metros and towns. This delivers an person an much easier accessibility. This assumes value if the current job of an individual is of a transferable nature (e.g. bank job, defence personnel) or if he demands to make extended and frequent outstation visits (e.g. consultants, businessmen). The individual should not be place by way of the hassle of couriering his cheques to the property branch every single time or contacting the property branch, every single time he has a difficulty or a query. So it helps if the HFC is well networked across the country.
5. Prepayment / Foreclosure benefits
For several people, this plays a substantial function in their selection to go in for a particular HFC. For instance, a lot of salaried people know for a reality that their salaries would be revised every single year. This indicates that they can pay a larger EMI going forward. Some of these individuals also know that they would be getting a bonus, which they can utilise to spend off their property loan (either completely or partly). Some banks do not charge folks for creating a prepayment / foreclosing their account. Certainly such HFCs ought to get preference more than other HFCs that do levy a prepayment charge.
6. Do your homework
Many men and women have a tendency to buy into ‘brands’ rather than going for what suits them best. It really is not about how major the brand is it is a lot more about no matter whether that brand suits your needs and satisfies your criteria. Make a list of your specifications initial and then household in on an HFC. Talk to people who have currently taken a loan from a unique HFC and get their feedback.
Other factors like documentation, processing fees, document storage facilities and time taken for processing the loan should also be deemed. For instance, people do not like it if the documentation is an irksome method or if the processing costs are exorbitant.
Apart from this, read all the terms and circumstances very carefully and do not overlook to take an expert guidance. Thus, alternatively of reading on the profitable presents of the business, it is important to study and recognize the technical aspects of the presents. So if you want to be in a win-win proposition though dealing with the Housing Finance Firm, the onus is on reading the fine print in the loan document and seeing by way of the maze of thrilling presents.
