With more and more banks and NBFCs taking to the internet to provide services to their customers, it has become easy to find a Home Loan that best suits your requirements as well as financial situation. A quick Google search reveals all the details you need about a particular financial institution and its Home Loan policies.
Most of us are impressed by just the interest rates and tend to make a decision that is based on this parameter. While, undoubtedly, Home Loan interest rates are the most important factor to consider while applying for a Home Loan, it’s best to extend your research to other factors that matter in the long run as well.
Here are five of the most important factors apart from interest rates that you need to consider to get the best Home Loan.
There are several banks and NBFCs that offer Home Loans with attractive rates of interest. It is best not to fall into this trap and to choose a financier with a good reputation. A substantial institution with a high level of customer trust is probably the best option. Make sure to read the reviews on not just the company, but the services as well.
Types of Interest Rates
Ensure the financier offers both fixed and floating rates, depending on your requirements. A fixed-rate of interest offers financial stability and minimal economic volatility. This is the best option for those of you who do not wish to take risks. Floating interest rates vary throughout the tenure period and have the chance of bringing in high returns, with a certain amount of risk involved. You can study the overall rate movement to decide whether or not to invest in a fixed rate with your lender.
Flexibility in Loan Schemes
Choose a lender who offers flexibility in the loan schemes, be it in the tenure period or the EMI options. Some lenders give you the convenience of switching between fixed and floating rates of interest during the tenure period.
Financiers offer exciting perks to their customers like loan enhancements and extension of tenure periods. When there is an escalation in costs, a financier should offer an enhancement on the current loan to ensure financial stability to the customer. Similarly, the bank or NBFC should be able to extend the tenure period to up to 30 years to reduce the monthly burden of EMIs.
You can also look for benefits like balance transfers, an extension of the loan amount to furnish your new home, Top-Up Loans, and Part-prepayment facilities on your Home Loan repayment.
Customer services like instant approvals, immediate imbursements, doorstep services, online account access, and the dedicated relationship between customers and managers are some factors that help in the long run. These services are generally provided by most reputed institutions. These factors make the loan process easier.
Apart from these factors, you should also consider parameters that include loan eligibility & criteria and simple documentation process to make optimize your Home Loan.