Think Twice Before Selecting Any Home Loan Lender

Home Loan Lender

Nowadays, many young people are taking loans to support their financial needs. This includes buying their own homes. Several banks and non-banking financial companies (NBFCs) offer home loans at attractive rates. You could get a home loan of up to Rs.5 crore, payable over a tenor of 25 years. So, borrowers have a wide range of options to choose from.

If you are also thinking of applying for a home loan in india, first see which lender best suits your needs.  Before selecting your lender, consider the following broad guidelines:

Interest Rates

Different banks offer different interest rates on their housing loan products. It is sensible to study and compare them before making a shortlist. Use an online home loan EMI calculator to compute the  EMIs for various interest rates. Then, choose a lender offering the most competitive market rate.

Fixed or Flexible Loans

Most banks offer two types of home loans:

  • Home loans with fixed interest rates
  • Home loans with flexible interest rates

According to the market, house loans with flexible interest rates are a better option. Then, borrowers can enjoy the benefits of a dip in the rates.

Loan Approval Time

Every lender takes some time to check credit risks and verify applications before approving loans. Find out the turnaround time of your shortlisted lenders. Then, choose one where the processing takes place fast.

Hidden Charges

Read the loan agreement document carefully to understand any hidden charges. This can be a tricky process. Take your time and ask for clarifications, if needed. With a good credit history and stable income, you could even bargain with your lender.

Pre-payment and Foreclosure

Many banks charge a fine when you make a pre-payment or foreclose your housing loan. These charges can be quite steep. Look for a lender offering these options free of charge or at lower rates.

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A home loan is a long-term commitment. You should be able to cut down your repayment tenor by making pre-payments. Does your lender not offer this facility free of charge? Then, you can negotiate on this point.

Digital Transparency

In today’s digital age, you should be able to track your loan status at any time. Choose a lender with good online support and user-friendly online account management services.


Documents required for home loans are, on the whole, the same for all lenders. You need to submit identity, age, and address proofs. Some lenders ask for extra documents. Find out these details and choose a lender who will not burden you with too much paperwork.

Reaction to Rate Changes

From time to time, the Reserve Bank of India changes the repo rate. This affects the housing loan rates which, in turn, affects your EMIs. Choose a bank that implements the new rates fast. Then, you can expect a fair transaction in dealings.

Housing Loan Insurance

Banks offer housing loan insurance plans to cover for situations in case of death of borrowers. The policy cover reduces every year as the home loan tenor decreases. Note that this is an extra cost. So, it is better to choose a loan that meets your needs rather than looking for insurance covers.


There are many banks and NBFCs that bring you pre-approved offers for home loan, personal loan, EMI finance on different products and other financial services. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.

Keep in mind the points mentioned above. Then all you need to do is use a housing loan eligibility calculator to see if you meet the criteria of your chosen product. Put in your application and soon you will have your desired home loan.

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