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?