Most Common Problems Home Loan Borrowers Face
6. Down payment
Without doing a down payment bank will not disburse you home loan. Down payment is nothing but a small part of your loan amount of 10 to 20 percent that you pay to the bank, this amount might vary from bank to bank. It is mandatory to deposit this amount before the disbursal of the home loan. For example, for a home loan of 10 lakhs the down payment would be anything between 1 and 2 lakhs and the borrower has to have this amount when applying for a loan. Also if the valuation of the property by bank is considerably lower than the market price of the property, then the borrower has to pay the balance. This will increase your down payment effectively. Thus the remedy advised for such tricky situation is to get the property valued in advance and keep the down payment ready with you. Some banks provide the facility to do the down payment with provident funds and LIC policies. It is better to go for banks that will provide you with lowest down payment.
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