What are the key clauses in a loan agreement, which a home-buyer should keep in mind?
Home buying has become easier nowadays. With just a small amount as down payment, the rest of your property cost can be arranged through a home loan. Getting a home loan is easy, but have you read the fine print on the home loan agreement? If not, then you may be missing out important clauses of the loan agreement, which, if invoked, can land you into trouble.
“While taking a home loan, most buyers focus only on basic factors such as interest rate, down payment and EMI. The buyer pays scant attention to the loan agreement, which is often relegated as a legal formality to be signed in a hurry.
However, a home loan is a major financial decision, the impact of which plays out over a long period of time. This agreement is binding on the customer during the entire tenure of the loan. It is therefore necessary to be aware about the important clauses in your loan agreement,” explains Ramratthinam S, CEO, Muthoot Homefin (India) Limited.
Remember, you can negotiate only certain terms “of the home loan agreement (like tenure, interest rate, etc). You need to critically examine others before you sign on the dotted line.” Ramratthinam S CEO, Muthoot Homefin (India) Limited.