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Things to Consider Before Selecting Your Home Loan Lender

· Home Loan

Financial institutions provide attractive features while offering a home loan in India. If you are confused about selecting the right lender; consider the following points.

1. Interest rates

Go for a lender who offers competitive interest rates. You can utilise the online home loan calculator to compare the interest rates.

2. Fixed or flexible

Financial institutions offer two types of home loans; one with fixed interest rates and the other with flexible rates. Choosing the latter enables you to enjoy the dip in the interest rates.

3. Documentation

Go for a lender who demands minimal documentation.

4. Loan approval time

Choose a lender who takes the shortest turnaround time for faster processing.

5. Hidden charges

Read the home loan agreement thoroughly to check if there are any hidden charges. Also, make it a point to ask the executive if your need clarifications regarding this.

6. Prepayment and foreclosure

Select a lender who offers prepayment and foreclosure free of charge or at lower rates.

7. Digital transparency

Opt for a lender with user-friendly online account management services and excellent online support.

8. Reaction to rate changes

Any change in REPO rate from RBI affects the interest rates, and thus your EMIs. You can only expect a fair transaction in dealings from a lender who implements the new rates quickly.

These points will make it easier for you to choose your lender. Moreover, some lenders also provide pre-approved offers while offering a home loan in India to save your time.

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