Home Loan Home loan proves to be very helpful in realizing the dream of owning a home. However, we should keep many things in mind while taking a home loan. Apart from the terms and conditions, we should pay attention to what charges the bank is taking from us. Let us know in this article what charges are levied on the loan.

Business Desk, New Delhi. We may save money to fulfill our dream of owning a house, but sometimes we postpone this dream due to lack of money. In such a situation, a home loan is very useful to fulfill this dream on time. With the help of a home loan, we can fulfill our dream, but it is also important to pay it on time.

If you are also thinking of taking a home loan, then apart from the terms and conditions, you must know which charges you will have to pay on taking the loan.

Application Charges

Whenever you apply for a loan, you have to pay this charge. Even if you do not get the loan, this fee will not be refunded. In such a situation, financial advisors advise that before applying, you should make sure from which bank or financial institution you want to take the loan.

Mortgage deed charge

The mortgage deed charge is the biggest consideration when selecting a home loan. It is charged as a percentage of the home loan. However, many banks and NBFCs waive this charge.

Legal Fees

After the loan holder's application, the bank or institution appoints external lawyers. The lawyer investigates the loan holder's property and legal status. For this, the lawyer's fee is paid by the customer. If you want to save legal fees, then you should find out beforehand whether the project you are investing in has received approval from any bank or financial institution or not.

Prepayment Charges

Sometimes, to finish the loan before time, a part of the loan is paid before time. This is called prepayment. In this situation, the bank charges a prepayment charge or penalty to cover its cost and interest rate loss. This charge is different in all banks and financial institutions. Apart from this, it also depends on the type of loan.

Commitment Fees

Many banks charge commitment fees from customers. This fee is charged when the customer does not repay the loan within the stipulated time period. However, this fee is charged on undisbursed loans.

keep these things in mind

• Before applying for a loan, you should compare the interest rates and facilities of several banks or financial institutions.
• You should take a loan according to your budget. If you take a loan of a large amount, you may face difficulty in repaying it.
• Before applying for a loan, calculate the interest rate and savings etc. It may happen that you have to face financial problems due to the loan.
• Before signing the loan agreement, read the loan terms and conditions carefully. If you do not understand any of the terms or want to change any of the terms, you can do so.