What Cautions Should You Follow While Obtaining a Home Loan?

Posted by Tom Clark on August 30th, 2022

Loaners come in disguise when borrowers are short of money to help them out. Each year, it is seen that the demand for home-buying credit has constantly been increasing. With so many opportunities, fraud cases have also been rising unboundedly. If you want to stay safe from fraudulent activities, continue reading the article and have a hassle-free home-buying experience.

A Basic Understanding of Home Loan

Comes in the form of financial support. Home loans are grants offered by various financial institutions to construct or renovate your house. You can easily get suitable housing loans from the available lending organizations. Various banks, Fintech companies, and Non-Banking Financial Corporations offer loans to the needy depending on their repayment capability, credit worthiness, stability of income, and other parameters. If you want to get detailed information on availing of a home loan, you may visit the official website of your respective banks and make the most informed decision.

Protect Yourself Against Fraudsters While Acquiring a Home Loan

In India, bank identity theft is not new. You often watch in the news that fraudsters acquire loans from banks and don’t make refunds in the due period. This is more prevalent in home loans and personal loans. There are also some instances where individuals cheat innocent people by promising getting home loans.

Not only that, these scammers deceive loan seekers by taking several lacs to make arrangements for cheap loans. Considering such a scenario, financial advisors always suggest contacting the nearest branch of a reputed financial organization directly and getting the right help at the right time.

These counterfeiters represent themselves as authorized bank agents and assure the loan seekers against heft commissions to provide attractive benefits on taking home loans. They also make them realize that through direct application to the bank, the loan seeker would not avail of such benefits and face loss. These include:

• Easy sanction of home loans with a low CIBIL score
• Arrangement of loan on unauthorized properties without requisite documents
• Low rate of interest than the official announcements by banks
• Accreditation of home loan without proper income statements

Point of Caution for the First-Time Home Buyers

Always remember that banks never appoint such home loan agent who supports customers without seeing adequate documents. Under such rising scam cases, no financial institutions in India take the risks of providing a home loan without income proof, fair credit score, and complete legal documents. If any person claims that he/she will help your sanction the loan in such conditions, it is recommended not to believe them.

If you become the victim of any fraud case associated with home loans, visit your nearest branch to inform them about the scams. You can also launch FIR to the cybercrime department and inform them about such incidents to help them investigate better.

Since RBI decided to cut down the Repo Rates, housing loans have become more cost-efficient. Also, make it clear that no banks have the authority to sanction loans at an interest rate below the advertised.

Be Careful of Home Loan Fraudulences

With increased criminal activities, the economy is mostly gets affected. Therefore, before applying for any loan, always visit the respective bank branch in-person to ensure transparency. Never share your PINs, bank details, passwords, or OTP with anyone to stay secure.