Living in a metropolitan city like Bengaluru, purchasing a home for many will likely be tied up with looking for a house loan. Your housing loan is a long-term expenditure that requires as careful a consideration as picking your dream home.
In this article, we will be giving you tips on selecting the right housing finance provider for you in Bengaluru.
The Capacity of the Lender
Your house loan will be a substantial amount. Depending on your home loan eligibility, you may decide to invest a significant amount of your own money or simply go for a high loan sum. Hence, it is important to see if your lender has the capacity to provide the loan amount you desire.
Competitive Home Loan Interest Rates
While shopping for a housing finance provider in Bengaluru, you need to look for competitive interest rates. You need to leverage your credit score to select a lender that will give you the best rate. While choosing between a fixed interest rate or a floating interest rate is your prerogative, do not hesitate to negotiate the best deal possible for your house loan.
Loan Repayment Terms
A competitive interest rate is vital, but since you are likely to have a long-term relationship with your housing finance provider, the repayment terms are just as important.
Your home loan EMI and loan term should be comfortable in the long run. Look for processing fee charges, pre-payment charges, penalty conditions on defaulting or delay in instalment payment, etc. while researching for the right housing finance provider.
Your connection with the lender, after providing the loan, is not restricted to timely repayments. There are many more services, queries, and communication that require a quick response and resolution.
Therefore, proactive after-sales services are vital to make your loan repayment journey smooth. For example, while claiming a tax benefit on your loan repayment, you need to submit an interest certificate provided by the lender.
While some providers offer it only after the customer raises a request, others are more forthcoming and send it beforehand. Finding out how forthcoming the lender is on after-sales service will ensure a satisfactory experience.
Documentation and Turnaround Time
Living in Bengaluru, individuals are used to a fast-paced life. Efficiency and time are paramount. This is why, in the process of choosing the right housing finance provider, researching their turnaround time is necessary.
Most financial housing providers have an average turnaround of five days to sanction a home loan, provided you have submitted all the necessary paperwork. Documentation includes photographs, identity proof, address proof, income proof, and the property documents of your home.
Hidden Terms and Conditions
While your home loan provider checks all the right boxes, the true testimonial of a lender is their terms and conditions document. Rushing into a house loan without scrutinising said document might ensure a speedy loan sanction, but may be damaging in the long run.
Choosing the right fit for a housing finance provider in Bengaluru is just as important as choosing your home. Take your time, perform due diligence and reap the benefits in the future.