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DIFFERENT TYPES OF COSTS INVOLVED IN SECURING HOME LOAN

Posted on Monday January 27th, 2020

Having own house for an individual is the aspiration and dream of many life, as nobody wants to continue to pay the rent throughout their lifetime. Every person wants to get free from paying rent and for that, we have the benefit of home loan at ShubhBank which is the most beneficial loan in fulfilling your desire of having your own home. But before getting approved for home loan from the lenders may requires some amount of charges, which are basic costs and are levied form every financial and lending institutions. Generally, masses get so engrossed in the rates of interest and the EMI that they forget the hidden additional charges which are levied on them being borrower. Before applying you should have the proper knowledge of these different types of costs involved in securing home loan. Such of these costs are:

1. Loan Application fees- First of all, for processing your application, usually lenders require some amount of charges which may vary up to Rs.1000 to 5000. They are charged for the application purpose, to conduct the verification of your application and provided documents.

2. Processing Fees- Processing fees is the basic charge which gets deducted almost in every loan options, as it covers the cost of credit appraisal and it generally ranges between 0.50%- 2.0%, of the loan amount including the applicable taxes, which are levied.

3. Administration charges- When the loan quantum gets sanctioned from a lending institution, an administrative fee is charged. It varies from lender to lender regarding the charge.

4. Technical Valuation Charges- These are the charges which are regulated in the process of the assessment of the property. While you Apply For a Home Loan at least two valuations are done; these are generally done in the case of high value property.

5. Balance transfer charges- These charges are levied when the borrower wants to transfer his amount to another lender. And to do so, he/she is supposed to pay the balance transfer charges to the current lender from which he has a running loan to another lending institution to avail this feature.

6. Legal fee- The fee is charged for the scrutiny of provided legal documents that include the agreement of sales or purchase of property.

7. Pre-payment charges- These charges are levied when the borrower wants to prepay a specific amount of loan in full or in parts. But if you have floating rates with your loan quantum then there is no need to pay it, but if you have fixed interest rates running then it is applicable.

8. Notary fees- This fee is levied for the KYC (Know your customer) documents or for the POA (Power of attorney) , in which it is required to get notarized from any local notary. This is basically for the NRIs, who want Home Loans In India.

9. Documentation Fee- It is a mandatory fee which is charged after the loan agreement is signed and ECS (Electronic Clearance Service) is activated.


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STEPS TO GET OUT FROM DEBT

Posted on Monday February 26th, 2018

It is a very stressful experience for being in a debt. If you have “Secured Home Loan” then you become obligated to repay it even if you have life changing experience like job loss, increased expenses and major accident. With the rising prices, many families have felt the lack of income growth and cause a unintended consequence of debt. So we have discussed some simple steps to get out of the debt. Budget is the important towards managing your finances, so create a realistic budget and strictly stick to it. Reducing the expenses will definitely add to your savings and will help you to get our of debt.Credit cards seems to be very attractive but they charge a big rate of interest, so use it wisely. Open an additional savings account to reserve for either emergencies or a goal like to pre closure of loan. It will turn to a considerable amount tat will give you a boost to save more and be more money wise