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5 Things your Bank Doesn’t Want You to Know Before the Home Loan Disbursal

By: f2cpvtltd

We Indians consider our home as an asset. As a result, everyone wishes to have a home under their name. In our country, more than 70% of people buy a home with the help of a home loan. But the journey from home loan inquiry to the disbursal isn’t a cakewalk. There are secrets your bank doesn’t want you to know before disbursal. Therefore, before you sign the sanction letter & the loan agreement, ask about the things below in writing to avoid hassles in the future. 

  • Insurance– This is the common mistake every borrower makes while applying for a home loan. Sometimes your lender includes insurance with a home loan and increases your EMI. Or include its premium in the total outstanding. Therefore, ask for insurance policy details & clear doubts about the premium.
  • Processing fee– Bank charges process fee ranges between 0.25% to 1% of the principal amount. It’s negotiable & there isn’t any point in paying a higher processing fee. This fee directly goes into the lender’s pocket.
  • Prepayment Charge– When you decide to close or pay off your home loan, your lender can charge a prepayment fee. However, RBI strict guidelines are there for nil prepayment, but not all the lenders follow it.
  • EMI Enhance Scheme– During the tenure, you notice that your salary has increased or your partner has also started working. Now, you’re capable enough to pay more EMI every month to foreclose the loan at the earliest. Not all lenders offer this facility & it’s better to confirm than feeling sorry later on.
  • Lock-in Period– Most of the lenders offer a home loan at a floating interest rate that depends on the RBI’s repo rate & market rate. If another lender offers a better interest rate, you’d like to switch to it. But the lock-in period with your existing lender may stop you from doing it. Therefore, you better confirm the lock-in period to avoid balance transfer issues in the future.

These are the critical points you need to ask from your bank in writing. Apart from this, confirm document retrieval charges, minimum prepayment as well.

If you’re also looking for a home loan & seeking a transparent process, stick to Fair Fincorp as your lending partner. We help you to know the hidden secrets of lenders during your loan approval journey before you sign up. Our code of conduct, compliance & concern for your privacy during loan approval makes us the leading home loan consultant in Dehradun. Call 9897666966 or log on to

[ Also Read: Defaulted on loans/credit card, Forgot to opt for Moratorium. Now what? ]

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