The following loan tips are applicable to any type of loan; Home
Loan, Car Loan, Two Wheeler Loan, Personal Loan, Consumer Durable
Loan etc.
Always keep multiple copies of your identity, age, address,
income proof.
Self employed people should have proper documents of their
income and latest tax papers.
For the personal discussion round in the bank, it is advisable
to carry all the original documents regarding the information
provided in the application form.
Try avoiding submission of any fake documents or lies about
financial details; banks eventually find out the truth.
The address and telephone number verification job is outsourced
and interaction with outsiders may not always be easy.
Double Check whether the rate of interest mentioned and the
loan amount on the letter is the same that was discussed and
agreed upon.
Home Loan Tips
Try to get the title documents from your seller which proves
the seller's title including the chain of title documents if
s/he is not the first owner.
NOCs from the original owners such as previous owner, Cooperative
Societies, Housing Societies, concerned Development Authorities
etc.
After finalizing your property, you need to hand over the
entire set of original documents concerning your property to
the bank so that they keep them as security for the loan.
Make sure you deal with reputed developers only or someone
you know personally, they are competent to the industry standards
and know the process inside out, and will help you from other
additional hazards.
Every Bank conducts a legal check on your documents to validate
their authenticity. Even the draft sale documents that you will
be entering into with your seller will be scrutinized.
Banks sometimes charge an additional fee for the legal verification,
but most Banks cover the cost in the form of processing fee.
You are liable to pay interest to the Bank on the loan amount
from the day on which the cheque has been made and not from
the date on which the cheque is handed over to you/seller. So
keep an eye on that make sure to collect the cheque on time.
Auto Loan Tips
If you are buying a new vehicle you will have to register
it with the Regional Transport Office (RTO) and you are personally
liable for the registration charges.
Make sure that all the legal forms are filled in completely
and submitted to the right authorities
The power of attorney that allows the dealership to go to
the RTO and register the vehicle
Read each document carefully for errors. If something doesn't
feel right, don't sign.
Never feel pressured or obligated to sign just because considerable
amount of time is invested by the salesperson. It is a part
of their job.
