How NOT to take a Home Loan!
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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
**Disclaimer: Interest rates and market conditions are subject to change. This information is accurate as of July 2025 and is meant for informational purposes only. Please consult with certified financial advisors for advice specific to your situation. Home loan approval is subject to the bank's terms and conditions.
Credit at sole discretion of Kotak Mahindra Bank Ltd. and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.
Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
Success
Failure
Buying a dream home figures on everyone’s bucket list. However, when the time comes and you narrow your choice down to ‘the one’ property, there are many things to think about and avoid, especially when you are about to sign on the dotted line of your home loan application.
Assess these options while availing a home loan:
Taking a bigger loan than you can pay for every month
Many people commit the grave mistake of going for a loan, which they are practically not capable of paying; or they opt for a short tenure loan, which makes their EMIs heftier. You must first verify the available funds every month and then finalize basis the amount you can comfortably part with.
Loan with higher rate of interest
Before you zero in on the bank or financial institution for your loan, it’s best to research if there is a bank offering a lower rate of interest.
When you avail a loan of 50 lakhs or more, a difference of as little as 1% will make a huge difference.
Long tenure loan
Most banks provide their customers with long tenures on their home loan. However, the hitch in availing a long tenured loan is that although you will be paying lower EMIs, the interest gets compounded.
Extra charges
It is very important to read the fine print and try and extract maximum benefit, where available.
Take a minute to read your documents carefully. Apart from the interest factor, banks also charge a number of other sums like processing fees, foreclosure fees, etc. You can even negotiate and ask the banks to discount you on these fees.
Read. Read. Read.
Last but certainly not the least, you must read your home loan agreement and other documents carefully. If you are not very good with banking and legal terms, get someone with sound knowledge to guide you. You don’t want to be saddled with an unfavourable clause later, when it is too late to do anything about it.
A little bit of shopping around for the right loan will help you get the one that’s the right fit for you.
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