According to Nishit Dhruva, Managing Partner of MDP-Partners, “The main clauses of a loan agreement are that buyers must comply: as soon as your home loan application has been approved by the bank after checking the documents, you must execute a home loan contract with the lender. The real estate credit contract, a legal document, clearly defines the conditions for granting funds for the construction of the house and the collateral of the house for the benefit of the lender. As a borrower, you need to have a clear idea of some of the important clauses in the mortgage agreement before you put your signature on the points line. Most homebuyers consider signing an agreement to be a formality. It`s not true. It is an important legal document that defines the rights and commitments of the borrower. Certain clauses in the home credit contract can harm buyers of homes in large condition. The important clauses of a loan agreement, which you must absolutely take into account and understand clearly, are: The real estate credit contract developed by most banks and real estate lenders will probably have this clause. There may be loopholes that allow the lender to increase the fixed interest rate in exceptional circumstances. It is not easy to clearly define exceptional circumstances. However, if you look at the agreement correctly, you can avoid settling for a fixed-rate fixed-rate interest rate after launch. The provisions of this clause could counter the borrower`s confidence in the lender.
This is because you have agreed as a borrower to deal with the bank that provided the home loan, but you may end up negotiating or communicating with other parties. Many banks, non-bank financial firms and real estate credit companies include this clause in the loan agreement that gives them the power to share your data, even post-born cheques, with a third party, without providing you with advance information, for collection in the event of default on your part. Many borrowers may not even be aware of this. You get angry when collection agencies call you to collect emIs by default. A home loan contract is the document that governs the terms of your home loan, defines essential conditions such as “default” and defines your debt obligation. Most of the time, when obtaining a policy authorization for your home loan, you can conclude the signing of this document as a simple formality before the money is transferred to your account. However, once you have signed the home credit contract, you are bound by the terms and conditions and you are required to fulfill all the financial consequences mentioned in it. So don`t just look at interest rates on home loans, read the whole deal before signing on the polka dot lines. Ensure that no changes can be made to the signed agreement “The clauses have legal implications and must be understood and respected to ensure the smooth running of the loan,” says Ramratthinam S, CEO, Muthoot Homefin (India) Limited.
“If, after the conclusion of the loan agreement, the buyer finds that certain clauses are not clear or appropriate, he should seek clarification from the lender before signing the contract,” he adds.