Shivangini Gupta
A home loan is never taken lightly. It saddles an individual with long-term repayment and influences money planning for years, even decades. But this action, if it is taken without considering the fundamentals, can become a nightmare rather than a dream.
The duration of the loan is more important than most people know. The longer the tenure, the instalments get spread out, and monthly payments are easier, but it silently increases the amount of interest one pays.
The interest rate determines whether the loan is a good deal or a slow drain. Fixed rates are sure but inflexible. Floating rates fluctuate with the market, sometimes in favour of the borrower, sometimes against.
Approvals seldom proceed without proper documentation. ID proofs, address proofs, income slips, bank statements, and property records are needed with any application.
Loans have more than just interest. There are processing fees, stamp duty, insurance add-ons, administrative charges, even fine for prepayment or delayed instalments all these extras silently increase the ultimate cost of borrowing.
Credit history is a silent negotiator in the room. A high score typically gets lower rates of interest and faster approvals.