When you’re buying your first home, finding the best loans for apartments is a crucial step, and there are several factors for choosing the most reliable one. While there is a myriad of loan providers and financing options available for first-time homebuyers, you might feel overwhelmed while browsing through them. Take time to research the basics around apartment financing, or you can even consult the experts at Agrim HFC.
To evaluate your options better, here are a few pointers you must consider:
#1: Compare personal loan rates
The initial steps should be comparing loans and lenders and collecting all the necessary information. Before you commence the application process, you need to narrow down the type of personal loans that fit your requirement. Check for the eligibility process throughout the wide range of lenders available- traditional banks, NBFCs, and so on. Assess the different interest rates being charged. However, keep in mind that every time you fill in a personal loan application, your CIBIL score will take a minor hit. So, completing your loan application should be the last step.
#2: Check the loan amount
Depending on your needs, you need to ascertain the loan amount. Choose a lender who offers a loan amount to cover all your expenses. The experts Agrim HFC offer you immense flexibility to withdraw the loan amount and when in need of funds. The best part- you only have to pay interest on the amount you use, and you can choose the suitable EMI to cover the interest. Of course, you can repay the principal amount at the end of your tenure.
#3: Read the fine print
Each loan provider provides you with a legal document that calls forth the terms and conditions for your personal loan. It is imperative that you read through the fine print, understand its terms and conditions, and understand your obligation. Ensure that you are well aware of all the conditions mentioned regarding the personal loan, especially the loan amount, the interest rate, and the EMI payable every month. This document is legally binding for all loans for apartments, and therefore, familiarize yourself with it.
#4: Take note of the processing charges
Usually, banks and financial institutions charge a processing fee of 2-3% exclusive of GST. This amount is deducted from the loan amount you’ll receive. Therefore, question the GST the lender is charging you to process your loan and then decipher if it is affordable or not. Also, while you’re at it, check for other hidden or associated charges as well.
#5: Check for prepayment charges and penalties
It is advised to use your surplus income to make payments towards the loan to lower your interest. However, some lenders have highly stringent rules and regulations in place regarding prepayment, which is often accompanied by hefty charges. Agrim HFC charges you the minimum prepayment amount allowed. This will help you ascertain if or not you’ll be able to clear the loan amount in the prescribed tenure.
