Most home loans are paid directly to the owner and not to the client. Therefore, the client should ensure that this clause is carefully read before proceeding with any conjecture and plans. If it is mentioned that a transfer is made, the money will be transferred to another bank. This clause in principle authorizes the bank to change interest rates on the basis of its base rates. When a client borrows long-term as a home loan, the bank is free to change interest rates without obtaining the client`s consent. This can happen if banks change their base rates. A customer who received a loan before 2010 may not be known about this clause, which was implemented later. In the previous period, the primary credit rate applied to home loans. It is a good idea for the customer to require a softcopy of the agreement and carefully review the terms of the loan agreement. It is always important to understand that few aspects of the loan agreement, such as the length of the loan and interest rates, etc., can be negotiated with the lender. The client must therefore critically examine and understand all the important clauses of the loan agreement before putting his signature on paper. If you need more information on this topic, check out our extensive home loan guide for first-time homebuyers in India. This clause defines the coverage provided for the loan for the duration of the loan.
It is customary for the property to be acquired to be awarded as collateral for the loan granted. However, if this is not enough, which may be the case due to a market decline, the lender may require an additional guarantee, since the bank`s outstanding stock is covered. Any repayment made by the Customer for the loan adjusted in the first place against all other unpaid taxes, such as payment fees, penalties, transaction fees, etc., after the full recovery of these contributions, is the amount adjusted against the payment or repayment of the principal loan. If the borrower does not delay the payment of the loan to the financial institution such as banks, housing finance companies or NBFCs, the borrower reserves the right to pass on your personal data to third parties of their choice for the purpose of repaying the loan. There are many borrowers who are not aware of such a clause and who get angry when they receive calls from third parties asking for tax refunds.