Home Loan: Are you planning to buy a home? Are you even considering taking out a loan? Before you do, learn here what questions you should ask the bank to help you save significantly.

Getting a home loan is very easy.

Home Loan News: Building a home is everyone's dream. People work tirelessly to create four walls where they can live comfortably with their family. Sometimes, loans are taken from banks for this purpose. While obtaining a loan is very easy, there are certain things to keep in mind before taking one. This will ensure you don't suffer any losses and instead save money.

Ask the bank a question
that you're dreaming of owning your own home and are considering a home loan. Making a decision based solely on the interest rate could be a big mistake. Therefore, before taking out a loan, be sure to ask the bank one question: "Is there a prepayment or part-payment option on this home loan, and will there be any applicable charges?" This is the one question that could save you millions of rupees in the long run.

How can you save lakhs of rupees?
Home loans are often taken for 20 to 30 years. During this time, you may have to pay more in interest to the bank than the principal amount. However, if you make advance payments periodically as your income increases, the interest burden can be significantly reduced.

To understand the math behind saving 25 lakh rupees,
let's use an example. For example, suppose you took out a home loan of ₹50 lakh for 20 years at an interest rate of 8.5%. Your monthly EMI would be approximately ₹43,400, and you would have to pay approximately ₹54 lakh in interest on the overall loan.

Now, suppose you make a part-payment of Rs 10 lakh in the fifth year of the loan's inception. This will either reduce your EMI or shorten the loan term. This could reduce your total interest payment by approximately Rs 25 lakh. This means that a wise decision can result in significant savings.

When will you receive this benefit?
However, you will only receive this benefit if the bank offers prepayment and does not charge additional fees. Therefore, before taking out a loan, be sure to ask the bank about when and how often part-payments can be made, what the minimum payment will be, and whether any fees will apply. Also, find out whether the loan is based on a floating or fixed interest rate. Many banks do not charge prepayment fees on floating-rate home loans, while in some cases, fees may apply on fixed-rate loans.