The RBI will not allow banking institutions to levy a prepayment penalty on housing loans however they may levy a penalty on other loans. Some lenders usually do not charge a prepayment penalty in the event that quantity compensated will not meet or exceed 25% of this title loans oregon amount that is outstanding the start of the season.
7. COMPREHEND THE SMALL PRINT
Loan documents don’t make for light reading. Paragraph after paragraph of legalese printed in a font that is small be described as a placed down. Yet, browse the conditions and terms carefully to prevent unpleasant shocks. Bengaluru-based Subhash Shetty sent applications for a unsecured loan of rs 1 lakh but received a cheque of just Rs 91,800. The financial institution had deducted Rs 5,152 being an upfront interest fee and an annual insurance coverage premium of Rs 3,047.
Shetty had finalized regarding the documents without going to the small print. Some loan providers are notorious for sliding in clauses which are packed from the debtor. Before you sign it if you are unable to understand the legalese, get a financial advisor or chartered accountant to take a look at the agreement.
8. REPLACE TALL PRICE LOANS