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?