Common questions to ask about housing loans

Its been a painful week enquiring at a dozen places about the various housing loan options.

With each new enquiry, I accumulated some more questions to ask about any housing loan. Here they are, in case you need them:

  • Is a fixed rate of interest really fixed for the entire tenure? If it is not fixed for the entire tenure, when is it revised?

  • At what interval is the floating rate of interest revised?

  • Can you convert a floating rate of interest to the fixed rate of interest during the loan tenure?

  • Are there any part-payment charges?

  • Are there any pre-closure charges?

  • Is the loan insured? Does the insurance cover property damage or also accidental death of the applicant?

  • Is the loan issued on the (house value + registration)?

  • Does the loan also cover charges for soft furnishing of the house?

  • Is there any discount for timely payment of the EMI? (Believe me, some banks do give this)

  • Is the actual loan amount directly handed over to the vendor or to the applicant?

  • How long does loan disbursal take after completion of sanction?


Daria said...

Thanks for writing this.

Mantha Phani Satya Anirudh said...

If you are looking out for loans then here are few banks which gives you loan's at lowest interest rates online.