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Other Charges to Know About When Applying for Home Loans

· home loan

Buying a home is a big financial decision. No wonder that most individuals opt for home loans when buying a house as it gives them the liberty of paying back the loan amount as per a tenor of their choice.

Now while Home Loans are an attractive finance option, there are some charges which it entails which people may not know about. Given below are a few of them -

Interest Rate

This is an expense which applies on every home loan applicant. The interest rate is the amount which the bank charges for availing any loan. It is charged to you on a monthly basis and is part of the installment. The interest rate varies from lender to lender. Thus, you should compare various lenders to find out who is offering the best interest rates to suit your budget.

EMI Bounce Charges

These charges are applicable only if you miss paying the installments of your home loan. This can happen because you were facing a financial crunch, or you have a number of loans and forgot paying the installment on time, or due to some other unforeseen and unavoidable circumstances. The EMI bounce rate varies according to the lender. It is thus best to pay your installments on time so that you do not incur these charges and maintain your credit score.

Prepayment Charges

If you decide to prepay a part of your loan, then you had to pay some charges to the lender. Even though most online lenders have stopped charging prepayment fees, there are still a few who charge it. Make sure that you inquire about prepayment charges when searching for a home loan lender.

It is worth noting that these charges may or may not be applicable to you as it varies on the nature of the applicant.

There are a number of lenders who offer home loans. They offer loans of up to Rs. 3.5 crores at attractive interest rates. You can choose the tenor of repayment and also get an online loan account to check your home loan details anytime.

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