How to Choose Your Home Loan Provider
Many lenders in India offer home loans at competitive interest rates and getting a loan has become easier than ever before. However, if you are a first-time borrower, it is better to equip yourself with adequate knowledge about the home loan processes and different lenders before you get started.
In this writeup, we discuss a few tips to choose the right lender.
- Consider the lender’s reputation
Before you approach a financial organisation for availing a home loan, you must do your research well about the lender’s reputation and credibility in the market. You must know how long they have been in the lending business, are they known for being professional and ethical, do they have a long list of happy customers, do they offer customised home loan products, etc. knowing answers to these questions will help you choose the right lender faster.
- Know about the interest rates and other charges
When it comes to availing a home loan, the interest rate is probably the critical factor you must consider as it heavily influences affordability. Higher the interest rate, higher will the EMI and vice versa. So, while you compare the home loan offers from different lenders, it is advisable to choose the one that offers the loan at the most competitive interest rate.
Similarly, you must be wary of other charges involved. Most lenders that charge a low interest on home loan charge many other fees such as processing fees, documents verification charges, legal fees, prepayment charges, etc. which could eventually increase the overall loan cost.
So, compare the interest rate and other charges and choose the right lender so that you don’t spend more than you should.
- Simple process and minimal documentation
Many first-time home loan borrowers tend to get overwhelmed by the complicated loan application and the documentation process. However, nowadays many lenders have a simple process to help the borrowers get the desired amount without any hassles.
So, when you compare the lenders, make sure to ask them about their process, documents requirements and how long it takes for approval and disbursement before making the final choice.
- Online services
In the purview of the growing preference of the customers for using digital platforms, many lenders are now offering fully online home loan services. Make sure that you choose a lender that allows you to apply for a loan online through their website or mobile application. Also, the lender must be tech-savvy and offer value added services like helping you access your home loan statement, pay the EMIs, raise a query online.
- Single POC
Many large financial organisations receive hundreds, if not thousands of home loan applications every day. In such a situation, your application may get lost in the pile and there could be a delay in the process. To resolve this issue many reputed lenders now appoint a specialist relationship manager who offer specialised services to individual customers. These professionals become a single point of contact for all your loan-related needs and queries.
So, when you choose the right lender, ensure that you have a single POC so that you don’t have to run from pillar to post. This will help you get the application processed faster.
Now that you know the different features to consider, do your due diligence, and choose the right lender.