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8 RULES MUST FOLLOW BEFORE APPLY A LOAN

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Get Inssurance for your loan

Every individual in this world has got a specific set of needs that drives him/her to the fulfillment of it. But some individuals don’t hold the capacity to fulfil their needs. Here, the banks come into the picture and take the advantage of the gap as an opportunity. They lend the money to the individuals for certain tenure and the certain rate of interest and earn the profits in the middle. So, if you are going to apply a loan for the fulfilment of your needs or to settle some contingency that has stopped your path to success you must go for it.

Rules To Follow Before Submit Your Application

Technology, on the other hand, has changed the way of the banking systems. The lenders are providing their customers with the Net Banking and with extended services like an instant loan. You get a loan disbursed in 10 seconds to your bank account which is in itself a tremendous benchmark achieved by the Indian banking system. So, here are the rules:

SUSTAINABILITY:

It’s better to check how many loans you can afford before applying for a home loan. Based on the type of the job you must decide your EMI’s . Because non regular loan repayment can reduce you CIBIL Credit score .

Read Also : How to Get Loan With Bad Cibil Score ?

DOWN PAYMENT:

It’s always advisable to check your liquid assets for the moment before you apply for a home loan.For the down payment, you have to deposit a certain amount. So double check your assets.

LOAN PERIOD:

The loan tenure must not be a burden for you. So, you must be checking all the options and try to keep the loan tenure as short as possible making it easy for you.

TYPE OF INTEREST:

Floating and Fixed Interest Rate of Loan

The interest rates are usually of two types i.e. the Fixed Interest and Floating Interest. You must always opt for the fixed one as you become secure. Also, you can shift, but charges applied. You can negotiate with the bank for loan interest rate .

CHARGES AND PENALTIES:

There are charges such processing fee, legal verification applied to some and stamp duty on your home loan. Also if you are late on a payment the bank may charge. So, beforehand get aware.

GET INSURANCE!

Get Inssurance for your loan

Get insured the moment you apply for the loan as it helps you in any contingency during the tenure along with benefits. Loan insurance will keep you repayment habits safe during any unpredictable circumstances such as from theft , fire ,flood etc .

TAX BENEFITS:

Be aware of all the tax benefits and the charges you will get before you apply for a home loan.

Also, be aware of any other costs by the banks.