Whether you are a doctor, an engineer, or just a regular salaried professional; you are likely to hesitate before taking a home loan due to the misconceptions prevailing about the product. However, you must not refrain from benefiting from a facility owing to the prevailing myths. Instead, take matters into your own hands and do some research, find out the truth and then decide your next step.
Myth 1: Home loan tenure should be short
Home loan tenure should be short. No, it's not like that! In fact, a longer repayment tenor ensures the EMI burden is in accordance to the repayment ability of the person. However, people can take a home loan for shorter tenor if they wish to foreclose their home loans faster. Opting for a short tenor is not a compulsion, the subscriber has the choice to decide the length based on their repayment capacity..
Myth 2: Home loan interest rate can’t be negotiated
No! As opposed to the myth, the interest rate can be negotiated. Having said that, you can't expect the lender to give you a better offer if they are already offering you the loan at the MCLR rate. However, your credentials: your CIBIL score, your credit history, and your income should be in a perfect state to be eligible for negotiation.
Myth 3: The Interest rate is the only evaluating factor for home loans
Again, the interest rate is one of the most important criterions but it's definitely not the only one. The other factors are borrowing limit, tenor flexibility, availability of top-up loan etc.
Myth 4: You can’t prepay your home loan for healthcare professionals
Lastly, you can prepay or part-prepay your home loan for healthcare professional if you wish to. No lender can stop you from prepaying or part-prepaying your loan as long as they are not registered bank or NBFC.