Home Loan Bangalore

Keep These Agreement Facts in Your Mind Before Getting a Home Loan in Bangalore

Bangalore or Bengaluru is known as the Silicon Valley of India. It has been ranked among the top 10 cities of the world with economic growth of 8.5%. Owing to the advancement and penetration of technology, financial institutions and NBFCs offers home loan in Bangalore without any hassle. 

To avail such loans, you have to meet specific eligibility criteria and furnish some essential documents. Also, after your loan is approved and the amount is disbursed, your lender provides you with some agreement documents that contain all the details of your advances. And if you are planning for new home you should also look for best interior designer in Kolkata.

To avoid problems with your loan, you must read these agreements thoroughly and refer to your lenders to solve any doubts or queries. Given below are some agreement facts and clauses that you should keep in mind. 

Security cover

Your lender may provide you with financial security cover to protect you from any possible devaluation of your collateral property. Before you avail such advances, it is essential that you inquire about such clauses to gain benefits. 

Details of your loan

In the agreement, your lender will mention all the necessary information, such as the home loan interest amount, principal amount, tenor, etc. 

Also, your lender will mention the MCLR based on which your interest rate is finalised and even the type of interest that you have chosen vis-à-vis fixed or floating interest rate for a home loan. 

Typically, lenders also quote your equated monthly instalments and repayment dates to assist you in the repayment process. However, if your EMI amount is not mentioned, you can make use of the EMI calculator to estimate your monthly repayment amount.

Make sure to always pay your EMI on time and try to close your loan as soon as you can. Part-prepayments and opting for shorter tenor are some ways to repay your home loan faster.

Charges

The agreement also carries details regarding the additional charges such as stamping and franking charges on home loans, processing fees, late payment charges, EMI bounce costs, etc. 

Pre-payment and foreclosures

Before you choose to pre-pay or foreclose your home loan in Bangalore, make sure to check the agreement to know your lender’s terms and conditions regarding such payments. Lenders may or may not charge for prepayment or foreclosure depending on their company policy. 

Several financial institutions and NBFCs offer loans with no prepayment and foreclosure charges. Bajaj Finserv is one such NBFC that provides Home Loan at a competitive interest rate against minimal documents and fees. They also offer:

  • Online account access
  • Instant approval
  • Home loan online apply options
  • Balance transfer facilities
  • Top-up loans
  • Prolonged tenor up to 20 years
  • Substantial loan amount up to Rs. 3.5 Crore

Tax benefits

Your home loan offers tax benefits under various sections. The agreement also quotes these sections under which you can enjoy such tax benefits on home loan. These sections are:

  • 80C- You can claim deductions of up to Rs. 1.5 Lakh against the principal payable amount and stamp duty and registration charges. 
  • 24(b) – Borrowers can claim deductions of up to Rs. 2 Lakh against the amount paid towards the interest component.
  • 80EE- First-time homebuyers can avail additional deductions of up to Rs. 50,000 for the amount paid as interest. 

Default penalties

Such agreements also contain clauses regarding late payments and defaults. Make sure to read these terms before you avail a loan to avoid legal issues in the event that you default on your EMI payment.

Also, check the late-payment fees and other penalties on default and consider making your repayments on time. 

Also Read: Know-How the Home Loan Repayment Works in India

Apart from the above, your agreement will also carry clauses regarding balance transfer facilities, top-up loans, applicable charges, etc. Before you make a balance transfer, do make sure to read these clauses carefully and understand the expenses involved.

About blogger2020

I am working in a well-known financial and tech advisor with the abilities to keep a track and predict the market trends with the utmost accuracy. My extensive knowledge in finance and tech is remarkable as she has worked on different financial and sectors dealing with the entire range of loans. I am also an expert in writing many finances and tech-related articles and blogs, so I am a renowned finance blogger too.

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