As the festivity mood gripped India ahead of the Diwali festival, people were seen excited and busy in preparation for the mega celebrations. The festival of lights - Diwali - is also known as an auspicious occasion to buy something important be it as small as a utensil or big as home. Driven by the optimistic mood during the festival, people plan to buy assets considering Diwali brings spiritual energy.
The consumers remain enthusiastic and filled with buoyant spirit ahead of the festival in October-November, following annual bonuses and savings. To capitalise on the consumers' buoyant spirit during the festival, several banks and financial institutions rolled out lucrative loan offers. They brought attractive offers, ranging from lower interest rates to reduced processing fees to lower interest rates and flexible repayment options for the homebuyers. Banks and other lenders chalk out their selling strategies in a manner that suits borrowers of every income category.
The lenders put up their seasonal promotions promising substantial savings and convenience for homebuyers. However, experts caution homebuyers as loans taken under the influence of promotions or advertisements presented by banks may land borrowers in long-term trouble. They say consumers should not sway away by the promotional offers, asserting such enticing offers must be approached with care.
Here are key tips for homebuyers planning for home loans
- Festive offers by banks often include attractive features but it’s essential to approach such offers with a critical mindset, considering the long-term impact of the loan.
- Festive promotions of home loans sometimes make the illusion and out of the excitement of festivity, consumers fail to make actual callculation. Therefore it is advisable that they should make a decision considering their actual needs or financial capabilities.
- It is imperative to decode the actual requirement of a consumer rather than swaying with festive offers. One should first assess whether a home loan is genuinely necessary or it aligns with long-term financial goals.
- Never take a decision after being influenced by offers related to non-monetary incentives such as gifts or promotional items as they hold less value in the loan scheme.
- Experts suggest that extras (in loan schemes) should not overshadow the financial implications.
- Home loan borrowers should remain vigilant about hidden terms and conditions that are often overshadowed by attractive offers.
- Taking fine print is a wise move to read terms and conditions carefully. They may reveal unexpected fees or penalties.
