Everyone desires to have a roof of their own on their heads. Personal privacy and security are feasible only with their own house, people feel. That is why, the first and foremost priority of many people would be to buy a house. The simple desire can be fulfilled by shelling down huge amounts of money. There is no doubt that the biggest investment a person can make in his or her lifetime is buying a home. Mostly people borrow huge sums from banks and other financial institutions to build a home. The home buyers, if they do not have enough knowledge, are susceptible to cheating like in any other field of activity. In this backdrop, let us find out what types of cheating are likely to occur while a person approaches institutions to get loans.
- Under no circumstances, the prospective applicant for a loan should take a loan from a bank which is suggested either by a broker or the landlord. There are chances of people getting conned.
- The bank will give the loan if you have the necessary documents and certificates to take the loan. Otherwise the loan will not come under any circumstances.
- Generally, 70 % to 80 % of the property value is advanced as a loan. The loan is given on the amount quoted as property value in the registration document but not in the market value of the property. That is why the applicants should keep in mind the registration value before placing their demand for loans with banks.
- If the registration value for the loan is increased, incidentally the registration charges will also increase. Also the seller has to pay higher tax on their income. Moreover, the applicant should show to the authorities the sources of income to repay the loan.
· Banks charge processing fees from customers to advance loans. The fees would be either Rs 10,000 or 1.5 per cent of the loan amount. These vary from bank to bank.
