It is not unusual for investors and home buyers to feel apprehensive in trying out varied options for getting home loans to buy properties. Considering the way the Indian banking system especially the loan segment is presented, the profound skepticism found in the buyers of this country is not completely illegitimate.
There were times when Indian banks were notorious for their slowed paced work approach, paired with communication issues. However, the story of Indian banking systems has now been changing, literally and figuratively. Quite surprisingly, well, not so surprisingly, the loan segment of the Indian banking sector has now become more organized and systematic. Just a few years ago, applying for a loan was an overwhelming process. A loan applicant had to invariably follow several cumbersome steps before the loan was finally approved. But today, with the advancement of technology, applying and receiving loan has become an instantaneous process.
The home loan segment is witnessing spectacular competition between banks, which has led to faster approvals, better customer services and affordable interest rates.
Some of the latest additions in the home loan segments are as follows:
- Adaptation of the Base Rate System
One of the most conspicuous developments in the home loan segment is adaptation of the Base Rate System, which has brought a significant level of transparency in the rating system. This particular Base Rate System (BRS) helps in standardizing the interest rates offered by all banks.
- Creditworthiness of loan borrowers
Once upon a time, the Indian banks did not even have a strong database to acknowledge the creditworthiness of its loan borrowers, which invariably led to infinite Non-Performing Asset (NPA) accounts. But, credit bureaus that offer extensive database of consumers and their credit history help banks in staying away from loan defaulters. Today, Credit Score Report is considered to be an essential report to check credit worthiness of any loan applicant.
- Loans have become online
Loan applicant need not go to physical branches and wait for hours in the queue to discuss their requirements for a loan. Now, with the Indian banks going online, one can easily check their loan’s eligibility online. Besides, you can also calculate the EMIs, and, most importantly, even apply for a loan from the bank of your choice.
Knowing the latest home trends is vital in making wise choices while dealing with loan lenders; however, it is also essential to know and follow few tips to avail beneficial home loan offers.
- Cheap is not always good
Although you might be tempted to chase cheaper rates of interest, it always isn’t a good option to choose. Instead do your research and opt for a competitive rate.
- Don’t be biased
We should not make emotional decisions when it comes to deciding our loan lenders. Do not always go by what your friends or family reckon. It is advisable to do your math and choose accordingly.
- Read reviews
It is imperative to read reviews online as that will help you gauge and make better decisions. Of course, you should not blindly make up your mind based on what you read online as there are many who badmouth lenders for selfish reasons. Remember to always look at their ID’s before using their advices.
Buying a house is a big decision. It is usually once-in-a-lifetime decision for most of us. Therefore, it is profoundly significant to understand and select the right type of home loan product for our subjective requirements. The abovementioned tips and information on latest trends should provide some relief to all interested home loan applicants.