This article is not giving all the questions needs to be asked to financial institutions. The most important parameter is the base interest rate (PLR) and discount on it.
Second, biggest warning - never ever take full disbursement from Bank and give it to builder while building is in construction stage. Only Bank and builder will benefit from this term and consumer is badly impacted. Some private sector banks are promoting this package without giving clear picture to consumers. NEVER EVER OPT FOR THIS EVENIF YOU ARE LOSING A GOOD DEAL.
I found it hard to understand what the author wants to convey. Any person who is persuing for a home loan and who has done minimum homework, would know these facts anyway.
I would have appreciated, what are the fine points one should look for in the documents both from the bank and builder. I persued for a flat and wanted to make myself sure about the clear ownership of land upon which the complex was built. Believe me, the builder did everything but to show me the papers and even warned me of dire consequences should I insist to see the papers.
One should check the municipal tax record of the said land, ownership deed of the land etc before moving ahead. It is a common practice by all builders that they would want you to book the property first and then let you check the papers which is not recommanded.
When you go to the bank or finance company, and opt Fix rate, it does not mean a fix rate of interest for entire loan tenure. It may be fix for two,three or four years depending upton the Bank/comnapy who gives the loan.So, pls confirm first, how many years rate will not change?. But in most cases, it is better to opt fix rate instead of floating rate of interest.
This really is like those 'For Dummies' series of self learning books. I think you should extend this to other areas such as personal loans, credit cards and so on. Truly informative for starters.
It was really good.Just a Doubt ... Can a bank increase diffrent interest rate for different customer who availed the loan same time. Bank is charging 9.75% to Mr X and 10.25% to Mr Y. Both have taken the loan in sept. 2005 at 7.75%.
