Indore is ranked 8th in the real estate sector among the Tier-II cities in India. The city achieved this ranking owing to the immense rise of investment in residential and commercial properties. Its IT sector also contributes significantly to this rise.
The demand for affordable residential properties has exponentially increased in the in this city and neighbouring areas for these reasons.
Furthermore, the availability of home loans in Indore has provided the impetus to this demand. However, with several lenders in the market, it can be a challenging task for an individual to determine the favourable terms on housing credit.
Here are a few tips that they should consider before availing such advances to make the most out of it.
Compare various interest rates
Borrowers should compare the interest rates of several financial institutions before they avail a home loan. Interest rates can be of types – floating and fixed.
Fixed interest rates stay consistent throughout the loan tenor keeping EMI’s constant. Floating interest rates are subjected to change according to the market conditions, subsequently varying the EMIs.
Borrowers should consider the current market conditions they avail a housing credit. Opting for floating home loan interest rates for a long-term credit when RBI is likely to slash the repo rate can be beneficial for a borrower.
Look out for part pre-payment and foreclosure fees
Part pre-payment and foreclosure are two crucial facilities associated with a home loan. With part pre-payment, borrowers can reduce the principal part of their loans by paying an amount of more than one EMI whenever they can. It reduces the interesting part associated with credit and subsequently, the total cost.
Customers can also avail a home loan foreclosure facility to repay their entire debt before the end of the tenor. The sooner they repay their debt, the lesser interest they pay.
Availing such advances from a lender that charges minimal part pre-payment and foreclosure penalty fees is advantageous.
There are several financial institutions that offer such facilities on home loans with zero penalty fees. A few other benefits they provide include –
• High loan amount of up to Rs. 5 Crore.
• Balance transfer facility
• Property dossier
• Online loan account managementChoose your loan tenor wisely
Individuals who are planning to avail a home loan should plan their repayment strategy by deciding upon a loan tenor beforehand. The EMIs depend directly on the tenor. A short tenor can increase the amount of monthly debt obligation but reduces the overall cost of a loan. On the other hand, a longer tenor makes it easier for a borrower to repay the debt owing to a lower EMI.
Borrowers can use an online EMI calculator to determine the amount they are comfortable paying monthly to decide the ideal tenor for them.
Similar Article: Read about the best residential places in Indore where you can invest your money.
Be aware of the processing fees and additional charges
There are various home loan fees and charges that a borrower needs to pay when they avail such credits. Processing fees is one such additional charge that a borrower is required to pay after approval of a home loan. It is usually deducted from the sanctioned amount during disbursal. Along with that, lenders can charge a few other fees like EMI bounce charges, penal interest, etc.
Borrowers must ensure that they avail a loan with minimal additional charges to reduce the total associated cost.
Consider the tips mentioned above before you opt for a home loan in Indore application process. Also, ensure that you meet the required eligibility criteria to avoid rejection of your application. sprunki horror Endless Fun Awaits!
