Pros and Cons of loan take over
Category : Home Loans
We as borrowers might get very excited and happy about lower interest rates and would want to transfer our existing loan to a new bank , but there are many factors we must keep in mind while going in for loan take over.
- Calculate the total amount you would be paying after you get a take over of loans. Do your maths properly before going in for take over. It’s always the interest part that we pay to the banks first so always do your calculations wisely otherwise you would not be in winning position, rather it would be a silly decision.
- Check how much loan amount you would be transferring vis a vis your collateral’s valuation. If your loan amount is small then keep aside the security double the amount for some other bigger loan you would want in future and provide another collateral.
- Just check the other charges like processing fees or allied charges or another new bank account you are asked to open and compare these with the lower interest rates you would be getting.
Whole idea should be to get your calculations right before taking any decision on take over of your loans. Decide wisely.