Buying a house is usually a once-in-a-lifetime affair people get involved in, and the same applies to taking a Home Loan. Choosing the right Home Loan provider in India is a significant financial decision that can affect the borrower’s wallet for years to come. It highlights the importance of choosing the best lending institution with the lowest current Home Loan interest rate and the most favourable terms and conditions. How one goes about it? It is a crucial consideration that needs a lot of research and contemplation.
Choosing the best Home Loan provider involves much more than getting the lowest interest rate. Let’s explore the various factors and features to consider while picking up a housing loan institution.
Experience and Reputation
Prefer a loan company that has been in the home finance business for several years. Select a lending institution with a good vintage that enjoys consumer confidence and trust. Moreover, it must have sufficient experience in offering tailored solutions to Home Loan seekers. Being an expert helps them better understand their customer’s requirements and provide customised solutions suitable to their needs.
Economical
Since a housing loan is a long-term relationship that might extend for decades, it is unwise to decide by looking at their initial offerings. Floating interest rates are prone to market changes during the loan tenure. Therefore, low-interest loan offers that seem economical initially might not be lucrative in the long run. One must monitor the overall movements in the interest rates over the last few years before deciding upon a Home Loan lender. Try selecting a loan company that passes minimum rate hikes to its existing customers and turns more economical than others over the loan tenure.
Pan India Network Coverage
The future is uncertain. The borrower could be in Chennai today but in Mumbai tomorrow. Therefore, it is wise to choose a lending institution with a pan-India network. It will allow customers to avail the same service levels wherever they are. The housing finance company should have a nationwide presence in all major cities of India. If the customer moves to another location or city during the loan tenure, they should not have any issues regarding post-disbursement services.
Customer-Friendly Facilities
Many lending institutions offer customer-friendly facilities for Home Loans in India. These include online loan applications, doorstep documentation service, minimal processing fees, and robust after-sales service to help customers sail through. Besides the above services, look if the housing finance company offers value-added services like Home Loan insurance, balance transfer, EMI calculator, etc. These customer-friendly facilities protect customers in case of need or mishap.
Versatility and Flexibility
Customers have every right to expect high levels of versatility and flexibility from the lending institution. To provide maximum eligibility, customers must have special programs and guides to calculate and improve the loan amount. While calculating Home Loan eligibility, choosing customised EMI options, or choosing the right Home Loan interest rate type among fixed or floating, the Home Loan company should be flexible in its offerings.
Flexible Loan Tenure
Go for a loan provider willing to offer a relatively convenient loan tenure according to the borrower’s repayment capacity. Opting for a longer tenure makes an applicant eligible for a bigger loan with a lower EMI burden. On the other hand, a shorter loan term helps the borrower pay off the loan quickly, giving them complete ownership of their property. Moreover, it helps save money on the interest outgo with fewer EMIs in the tenure. So, a flexible loan term will help the borrowers fulfil their homeownership dreams without stressing their budget.
Prepayment Options
A housing loan should be about financial independence, not limits and restrictions. It should allow part prepayments as many times as the borrower wants. Borrowers deserve a prepayment clause that will enable them to prepay their loan before the term ends. When they have the extra money and wish to pay off their loan, the financial institution should not burden them with unnecessary prepayment charges.
A Home Loan is a long-term commitment that lasts for decades. Therefore, ensure the loan company keeps the documents in safe custody and transparently provides all details. With fair dealing, ethical conduct, and easy access to loan information, it’s best to choose a company on which borrowers can completely rely.
Source: Tips To Choose The Right Home Loan Provider In India
