It is our perception that if the rate of interest is lower for home loan then that is a plus point to choose that particular financial institution but beware it is not as easy as it looks. It is possible that one bank offering loan at low rate of interest is costlier than the other bank that offers loan on a higher interest rate or in a case where both the institutes offering loan at the same rate one may cost you more but the other will be cheaper.It is possible because of the following reasons:1. The method of calculating the interest rate may differ that has a great impact on the loan cost in future.2. If the interest rate of two lenders is same then one can check for the recovery of the interest component as banks try to recover it as early as possible. The interest component is very high in installments initially but gradually decreases with time. They cover their large portion of interest in the initial few years.3. Check the credibility of banks.4. The type of interest rate is chosen like fixed or floating also affects the rate of interest now and in future.5. If the rate of interest is low then check for the other costs that are hidden or not clear to you. Understand each and every calculation for your convenience in future.6. All terms and conditions involved in home loan agreement should be clear and transparent. Because what seems favourable today should stay favourable later.7. The EMI (equated monthly installments) may be different. The borrower needs to pay the EMIs until the principal amount and the interest on it is outstanding. The EMI amount may be different for different lenders because of the different methods of calculations adopted by them. Always check the home loan EMI calculator to minimise your monthly installments.8. Margin money is also one factor that is how much down payment you need to do. The more the margin percentage the more down payments you need to do. Check for it.9. The amount of loan depends on the age factor of the borrower, number of dependents, income, etc. The lender banks or institutes always check the ability to repay the loan by the 50 to 60 percent of the borrower’s salary.10. The tenure for the repayment of loan is based on the age of the borrower as the younger borrowers can take advantage of long term period while older ones can’t take this opportunity. As the risk of bad debts is more in case of an old person. Long term loan could help you in minimise monthly payments. Opt for long term loan.Therefore when you go to purchase a home loan don’t just look for the interest rate that can be attractive but go into details to check any loopholes beneath.Contributor:Ruchi Mahajan.займ на карту без отказов круглосуточновзять кредит онлайн