Your home loan period will be from one month to thirty years. You can adjust the repayment tenure according to your age and income. Prepaying the loan is another technique to reduce the term.
It’s not a good idea to switch off the loan many times will gives wrong impression. You have to pay mortgage charges to every transfer.
You can also apply for other loans, such as personal and auto loans. However, banks will carefully assess your ability to repay any loan before giving it to you. It all comes down to your salary in the end.
Banks assess a late payment fee for each instance of this. If an unforeseen circumstance prevents you from repaying your loan, the bank will have the power to seize the property and sell it at auction to recoup its losses.
No, You can only return your loan through online channels or with cheques from scheduled banks.
Pre closure means that a customer wants to close the entire principal outstanding amount at one go. Whereas part payment means that a customer wants to repay only a certain portion of the outstanding amount. Please ask our advisor for more details on this when you loan is being processed.
Home Loan preclosures are allowed without any extra charges as long as the mode of repayment you have chosen is Floating rate of Interest and not a fixed rate of interest. Regarding part payment, some banks may have a restriction on the number of times you can do a part payment per year and also the amount that can be part paid in a year. Please ask for clarifications to your banks or loan advisor on all these factors before signing the loan document.
The bank will levy certain ECS bounce charges/penalties. In addition it will get reported in your credit report. Depending on the severity of the default it can have serious impact on your future credit possibilities like a home loan, car loan etc. In addition, the banks can also take legal action against the borrower.
It is the rate of interest levied on the part payment until the EMIs start to be paid.
10. My EMI has been increased due to an increase in the rate of interest (floating). Can the bank help me for lower EMI?
Whenever there will be an increase in the rate of interest floating, then bank will try to increase the loan tenor. However, if this impacts the rate of interest, then EMI will have to be increased. If you want to get your EMI reduced in the latter case, you must make some part pre payment to bank.
Yes, you can pre pay your loan. For this, there will be no pre payment charges on the floating rates of interests. However, charges will be applied on fixed rate of interest.
EBLR stands for external benchmark lending rate. Bank has adopted Repo rate as the External benchmark to link its floating rate home loans with effect from 01.10.2019.