The RBI doesn’t enable banking institutions to levy a prepayment penalty on housing loans however they might levy a penalty on other loans. Some loan providers usually do not charge a prepayment penalty in the event that quantity compensated doesn’t go beyond 25% of this outstanding amount at the start of the season.
7. KNOW THE SMALL PRINT
Loan documents don’t make for light reading. Paragraph after paragraph of legalese printed in a font that is small be described as a put down. Yet, browse the conditions and terms very very carefully in order to avoid surprises that are unpleasant. Bengaluru-based Subhash Shetty requested a loan that is personal of 1 lakh but received a cheque of just Rs 91,800. The lending company had deducted Rs 5,152 being an interest that is upfront and a yearly insurance premium of Rs 3,047.
Shetty had signed from the papers without going to the print that is fine. Some lenders are notorious for sliding in clauses which can be packed from the debtor. If you’re struggling to comprehend the legalese, get yourself a monetary consultant or chartered accountant to take a good look at the agreement before you signal it.
8. REPLACE TALL PRICE LOANS