Alert! Know These Tips Before You Sign The Home Loan Deal


BANGALORE: Taking loans do not make you economically unstable or weak by choice. The inevitable decision of taking loans comes up at various cross sections of life like buying a car or a home. What makes the decision of taking loan worth a regret is our common mistake such as not reading the minute characters in the loan documents, co-signing a loan for a dear friend or lying to the bank or concerned authority for short term solicitation of monetary requirement.

With Economic Times, we list five common truths that you need to be aware if you are planning a loan especially a home loan in near future.

You may not always benefit from repo rate cut:

As the concept of base rate came into scene since 2010, the flawed benchmark of prime lending rate disappeared and the loan rates asserted by banks lowered. Thus borrowers who took loans before 2010 still at times wonder why they bear a heavier loan rate over the present ones.

Regarding the rate cuts imposed by banks on borrowers, Adhil Shetty, Founder & CEO of BankBazaar.com comments, "all floating home loan borrowers do not get the exact rate cut benefits whenever the RBI cuts its repo rate. For instance, this year, the RBI has reduced its rates twice, but many banks are yet to pass this on to their borrowers.”

READ ALSO: Jaitley Banks On Surplus Stocks To Tackle Crop Loss

Top Five Issues That May Nag Investors In D-Street