Important Factors to Consider Before Applying for a Home Loan
Home Loan: Factors to be taken into consideration


How would you define a home? A home is a place where the times spent together becomes beautiful memories that are cherished forever.

But, how many can afford buy a home without a loan? It’s a fact Not many...

We live at a time when dreams are expensive. When top lenders offer home loans at a rate within our budget, everything seems brightened.

just the interest rate does not define a home loan. There are many aspects we need to consider before zeroing on the best home loan.

So, without wasting any time, let’s check out all such aspects.

1. Minimum processing fee Flexible & extended repayment options

2. Scope for increased home loan eligibility Minimum Fee on rate conversion Relaxed norms on part or full.

3. prepayment Special Offers, if any Let’s talk about each of them individually.

Why Is Processing Fee an Important Criteria While Evaluating a Home Loan?

The processing fee is the one-time fee you pay to the lender. As the home loan amounts remain much higher, with the average home loan size being INR 30-40 lakh, the processing fee even at the rate of 0.25%-1% can be a significant amount to pay.

The processing fee may or may not include the legal and technical fees, so it depends pretty much on the lender.

If the processing fee is not inclusive of legal and technical charges, we should check our savings and see whether you can pay that or not. To make it easy for you, lenders can give you the option of including the processing fee and legal & technical fee (if not included in the former) in the loan amount.

This will enhance your EMI and interest outgo than normal. Therefore, like interest rates, you should compare the processing fee of different lenders too..

Be at our doorstep today to know more...

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

Important Factors to Consider Before Applying for a Home Loan
Maniraj Anantham 5 December, 2022
Share this post
Sign in to leave a comment