Today, due to intense competition among the financial institutions, many lenders are willing to offer home loans at affordable interest rates. Also, with the majority of the lenders offering online services, applying for a loan has become easier than ever before. However, if you have no prior experience with applying for a loan, you must equip yourself with the right knowledge about how the loan is processed and different lenders.
In this write-up, we discuss a few vital tips for choosing the right loan provider in 2020 so that you can have hassle-free borrowing experience.
Know about the rate of interest
When you apply for a home loan, one of the critical things you must consider is the interest rate levied by the lender as this has a direct impact on your EMI and affordability. Look for a lender that offers the loan at the most competitive interest rate. Higher the interest rate, higher the EMI amount and vice-versa. You can use the loan EMI calculator to compute the EMI payable for the amount you want to borrow. This will help you make the right decision in choosing the best lender.
Similarly, you must be wary of the other charges such as home loan processing fees, documentation assessment fees, etc. as all these charges increase the overall loan cost. When you compare the offers from different lenders, pay close attention to such charges, and choose the right one so that you don’t spend more than you should.
Check the documentation requirements
All home loan lenders require the borrowers to comply with specific documentation. If you are a first-time borrower, it is easier to get overwhelmed as the requirements may change from one lender to another. Today, however, most lenders have simplified the process to help the borrowers get their loan approved faster.
So, when you compare housing loan offers from different lenders, make sure to check their documentation process and the documents they require. Also, you must ask the lender about the time taken for approval and disbursement of the amount before making the final choice.
Don’t overlook the lender’s reputation
Before you approach any financial organisation and submit your home loan application, take your time to do your research about the lender’s credibility and reputation in the market. Today, you may find plenty of private lenders that promise to offer high loan amounts with minimal documentation and low interest rates.
However, such lenders may be fraudsters. So, it is vital that you know how long they have been in the business, do they have a long list of happy customers, do they offer customised home loan solutions, etc. knowing the answers to these questions can help you make an informed choice in choosing the best lender.
Online services
As more and more customers prefer doing online/digital transactions, almost all the reputed lenders in India offer online home loan services. This means you can apply for the loan, get the sanction letter, pay the EMIs, and request other value-added services through the lender’s website or mobile application with just a click of a button.
Also, since most of the online platforms are easy to use, yzu need not be tech-savvy or have technical knowledge to access the online service. So, while looking for a new lender, make sure that you choose the one that offers online services.
Final Word
Now that you are aware of the important things to consider, do your due diligence and choose the best lea