Home Loan: Few charges you should know about

If you are planning on taking a home loan, you have two options as to where you can borrow from: a bank and a non-banking housing finance company (NBFC) like a housing finance company (HFC). Now, choosing between an HFC and a bank for a home loan depends on crucial factors like loan repayment period, processing fee, interest rate, etc.

A loan for your new house forms an essential component under this umbrella. Let’s say you have selected the bank that offers the best rate of interest. But have you looked at the other charges?

A home loan has many other components that can dent you financially, and the selection of a loan should be made only after a good comparison of all the costs.

Here are a few known home loan charges one should know before taking up a home loan:

Processing Fees: As the name suggests, this fee is collected towards the processing of your home loan application. This fee is non-refundable and is collected upfront regardless of whether your loan is sanctioned or not. Take this into account before choosing the bank you want to take the loan.

Mortgage Deed Fee: This is one of the significant changes you will have to incur while opting for a home loan. It is generally a percentage of the total home loan amount. Some banks waive off this additional cost to make the home loan look more attractive. But again, it may be subject to another set of terms and conditions.

Legal Fee: Before granting a loan, banks need to check the credibility of the borrower. They appoint lawyers to verify the legal status of their property. The fees charged by the lawyers are eventually passed on to the borrower. However, if the property you are buying is approved in advance by any institution, this fee is not applicable.

Prepayment Penalty: Paying off the loan before the end of the loan tenure is considered as pre-payment of the loan. While there are no pre-payment charges applicable on home loans with a floating rate of interest, as per Reserve Bank of India norms, lenders do charge some penalty for home loans with fixed interest rates if the borrower wants to repay the loan.

Loan Conversion Fee/Switching Fee: If you have taken up a home loan with a floating rate of interest but now want to switch to a fixed interest rate or vice versa, the bank will charge a loan-switching fee to facilitate such a request. While charges vary from bank to bank, most banks on average, cost 2 percent of the outstanding loan amount. In recent years, such switching fees are more prevalent for fixed-to-floating than the other way around.

Commitment Fee: Some banks levy a commitment fee in case the borrower does not avail the loan within a stipulated period after it is processed and sanctioned. The bank loses interest in the unpaid amount. Therefore it recovers a part of the interest from the borrower known as a commitment fee.

All banks may not charge all of the fees mentioned above. Besides these, other loan-related charges pertain to loan statements, foreclosure letters, duplicate copies of no objection certificate/no due certificate, etc.

So before you apply for a loan with any lender, make sure you go through the fine print
to catch the hidden monsters.

However, with Shubham Housing Development Finance Company, you can get your financial plan without any worries.

Easy Home Loans are available for everyone today.

Everyone needs help at one point or the other. The same is true for financial assistance. Sometimes people borrow money from others to make their wishes come true.

In earlier days people used to take loans from rich Sahukaars or their relatives instead of borrowing from banks. However, this arose many problems for the borrower as such lenders charge an unreasonable rate of interest and in turn harass the borrower to repay the increased loan amount.

Today. it is easy for everyone to apply for loans as several finance companies provide loans to people who are in urgent need. There are various types of loans like home loans, home improvement loans, loans against property, etc.

Home loans are secured loans. It helps to fulfil all housing finance related needs. Using an EMI calculator, it is the easiest way to determine your monthly payouts and balance your budget accordingly.

To start a new business, you require a considerable amount of money. A person willing to set up a business may not have that enough cash which can meet out all his requirements. Thus Shubham provides customized loans to enable women entrepreneurs to start their own business at a low-interest rate.

SHDFC offers loans at low interest rates. Shubham Housing Finance offers a hassle-free home loan, house loan or housing loan for lower-income peoplewho want to buy, repair or renovate their home. We believe that everyone deserves the security of a home.

Different lenders have different policies. If you get a loan for the long term with a low rate of interest, then it is beneficial for you. Due to competition, lenders are trying their best to attract people by providing different schemes which in turn is good for people.

Some of the lenders who provide best housing loans are Aadhar Housing Finance, Shubham Housing Finance Development, SBI, Axis, ICICI etc. Now you can easily avail your loans from these banks. Source by

Shubham Housing Finance Make Affordable Housing More Attractive

Owning a house is everyone’s wish and if you are one of them and planning to purchase or construct your dream house. Avail Pradhan Mantri Awas Yojana loan  and turn your dream into reality.

The Pradhan Mantri Awas Yojana (PMAY) is a Central Government scheme to provide Housing for All in urban areas by 2022. The PMAY mission provides central assistance across different states and UTs for providing houses to all eligible families and beneficiaries. The PMAY mission is working with various agencies, including banks.

SHDFC provides the affordable housing benefits of Pradhan Mantri Awas Yojana scheme through a Credit-Linked Subsidy Scheme, also known as CLSS. Under CLSS, interest subsidies are available on housing loans for beneficiaries of specific categories defined by the scheme.

Shubham housing finance solution supports the PMAY which empowers all first time home buyers with a subsidy of up to 2.67 lakhs to enable them to own a house for themselves and build a home for their family.

The PMAY scheme offers a large number of families across the country an opportunity to purchase a house at a low cost which is available through interest subsidies. Source by