Contractorbhai Team : What are some of the things Home Owners are not aware or you think Home owners should be informed if they are planning for Home Improvement Loan ?
Loan Expert : Most important is Income to Obligation ratio. You have to find out details like – how much loan/debt payments you have to arrange, your disposal income. You have to plan on how much is required for monthly expense & how much of your salary can you use for repaying debts and other financial obligations.
Secondly home owners buy loan without exploring which loan type to opt for. You have Personal Loans, or shall he go for Balance Transfer Top-up plan , LAP Loan Against Property or shall they opt for Flexi-Loans.
If there is no need for immediate cash outflow, then opting for Personal Loan will not be a great idea.
Third, from which finance institute or bank, who is offering fast money with minimum documentation is also important factor. Sometimes home owner can go through hell when it comes to documentations. Some banks will ask to submit list of documents, a minor mistake is one can ask home owners to submit say salary slip or bank statement of X-months, etc.
There are Finance companies which are very technically advance. Home owners can login in less than 30 minutes all procedure is done and they receive the money in their bank.
Contractorbhai Team : What are your tips for a lay-man who knows nothing about finance or loan related products?
Loan Expert : Society lacks awareness of loans today, which is very essential to be acquainted with. Say Home Improvement loan and second though to him would be Personal Loans. Well we suggest customers to explore for options. There is very less awareness of other options available which in long run might be cheaper for him.
Home owner looking for Home Improvement loan, we would ask him to firstly check for how much cash he needs to take on immediate basis. And also in long run how much would he require.
Other important factors every home owners needs to look for are –
The value that he is pitching for,
The amount of EMI’s he will have to pay,
The Rate of Interest.
Very important – it’s always a good idea to visit a finance advisor to explore on loan types offered by different bank that is best suitable for you. Many home owners wonder on internet for the same. But if you start submitting for loans randomly, it will affect your CIBIL score.