Home Loan Terms You Need To Know About

Home Loan from either a financial institution or NBFC has certain terms and conditions attached to it. This helps to legalize the loan process and assures security for the lender as well as the borrower.

Let’s discuss them here.

Sanction Letter

When you avail a Home Loan the lender offers you the sanction letter which is valid for six months. The letter states the following details:

 ● Loan amount

 ● Loan tenure
 ● Rate of interest on loan
 ● EMI amount
 ● Validity of letter
 ● Terms and conditions of loan agreement

Once you receive the letter make sure to read and understand the loan terms before you sign it and return to lender as your acceptance for the loan.

CIBIL Rating

Before considering your loan application lenders will check your credit history. This is a measure of your credit worthiness which states that the loan will be paid off in time without any defaults.

If you have maintained a good credit score of 750+ or more, you can even negotiate the terms of the loan with your lender. And they will be more willing to offer you higher loan amount at the Lowest Home Loan interest rate.

Even if you apply online you can discuss loan terms with your Relationship Manager and take informed decisions during the loan cycle. Additionally, you can use the Home Loan calculator at your lender’s website to know your eligibility and repayments prior to agreeing for the loan.