Having a home in your name is a precious feeling all together. An experience of owning happiness for your loved ones is delightful and emotional. If you want to experience any such feeling, then it is important you start researching for the best home loan services. As it is a long-term commitment, it is advisable to conduct a proper market research and understand the various plans offered. There are various factors such as loan amount, interest rate, repayment time, credit score, collateral etc. that needs to be considered before finalizing on the avenue of loan.
Choosing the best bank for a home loan is an important decision. Following are the pointers that should be taken into consideration:
Who likes to pay more interest? No-one. Have a proper understanding of the prevailing interest rates in the industry. You need to decide whether you should go with a floating rate of interest or fixed. It is advised that if the rate of interest tends to increase, you must go for fixed and if it declines, go for floating rate. Karnataka Bank is one among the best bank for home loans with its product KBL Xpress Home Loan with digital in-principle sanction & minimal documentation requirement.
It is defined as a fee that the bank charges from the loan borrower to handle the entire loan application process. This fee varies from bank to bank. It is suggested to always prefer the bank that charges the lowest processing fee, as it helps in reducing the overall amount.
No one wants to get involved in a lot of paperwork as it drains time and takes much efforts. Choose a bank that has minimal documentation process. With the advancement in the technology, banks now digitally get the loan process done. KBL Xpress Home Loan, a product from Karnataka Bank offers loan for construction / furniture / purchase of new site for your home. The process is digital and in principle sanction takes just 15 minutes (T&C). The bank ensures fast home loans with minimal paperwork and hassle-free process. Below mentioned are the documents required while applying for home loan:
- Home loan application form
- Government ID proof
- Income & property related documents
Note: There may be additional documents required, as per the bank’s policy.
Today, no bank or other financial institution charge prepayment charges, if the borrower has opted for floating rate of interest. In case of fixed rate of interest, banks may impose prepayment charges. Choose a bank that charges minimum prepayment charges, to reduce the overall loan expense amount.
Home loan comes with additional charges that are known as the effective costs. These are the charges that have to be paid by the borrower to the lender and are non-refundable. Some of these costs are loan processing fee, legal opinion charges, property evaluation charges, verification fee, etc. The lower these charges are, the better it is for the borrower. There are banks that charge these costs either altogether or separately.
TAT (Turn Around Time):
TAT is the time taken by a bank to process the loan and disburse the amount. It is always suggested to opt for a lender that is responsive and takes less time to process the application, complete the sanction and disbursal quickly.
Suitable EMI options:
Having the right Equated Monthly Installment plan plays a very important role as it structures the way the borrower pays back the loan amount. Banks offer a lot of varied plans for the borrower to choose from the EMI plans, as per their convenience and needs. Also, this depends on the down payment amount. It is suggested to opt for an EMI plan that makes sure that the EMI amount does not exceed 45% of your total income.
Choose a bank that states all the terms, conditions and policy before you apply for the loan. There has to be transparency between the lender and borrower and details should not be either missed out or hidden. As the terms and policies are difficult for a layman to understand, it is the bank’s duty to make sure that there is complete clarity. Here, the bank staff plays an important role in how they manage and acknowledge every doubt of the borrower. This further develops trust and enhances brand equity.
Availing a home loan leads towards the happiness of having a home of your own. Conduct proper research before finalizing the bank to opt for a home loan. Karnataka Bank’s Xpress Home Loan is a great way to finance the home of your dream. The in-principle sanction time is just 15 minutes (subject to certain terms and conditions). The process involves minimal paperwork and is hassle free ensuring online safety.