Home Loan has both fixed and variable rate of interest –
The rate of interests charged on a home loan is of two types. One is fixed rate of interest, and another is the variable/fluctuating rate of interest. As it is understood by their names, the fixed rate of interest remains fixed and unaffected by the increase and decrease of market rates and the decisions of R.B.I on the national cash rate.
On the other hand, if you have taken a home loan on the fluctuating rate of interest then every time the charged interest rate will be according to the current change of rates. In case of an increase in rates of home loan market, the customer have to pay the increased amount but on the other side a decrease in home loan, the customer will avail the benefit also.
Repayment Frequency –
It’s not necessary to repay your home loans on monthly basis only. Depending on your income, and your convenience you can choose to repay your loan on a weekly, fortnightly or monthly basis.
Early repayments –
Although, home loan installments have a fixed amount but sometimes due to reasons like an increase in salary, customer is able to pay big amount of his loan. Well, he can certainly do this, as it is a feature of home loan, which allows a customer to repay his home loan before time but remember that the customer needs to enable this feature. In fact, after a decision taken in 2013 the RBI has instructed the banks to not to take penalty charges on prepayments of home loans taken on fluctuating rates.
Home loan does not include registration charge and stamp duty –
Usually home loans do not include the amount of registration charge and the stamp duty. Most of the time the buyer has to arrange this expense from his pocket.