Borrowers should compare banks and housing finance companies because each institution follows different lending policies and assessment methods. Banks often have standardized eligibility criteria and documentation requirements, which may suit salaried individuals with stable income profiles. Housing finance companies, on the other hand, may offer more flexibility in assessing self-employed borrowers, small business owners, or those with non-traditional income sources.
There can also be differences in interest rate structures, loan tenures, processing fees, and prepayment conditions. Customer support, turnaround time, and regional presence may vary as well. By comparing multiple options, borrowers can choose a lender that aligns better with their financial situation, repayment capacity, and long-term goals, helping them avoid unnecessary stress and make informed borrowing decisions.
Read Also : How important is transparency in loan processing?
Answered a month ago
Shubham Finance
Borrowers should compare banks and housing finance companies because each institution follows different lending policies and assessment methods. Banks often have standardized eligibility criteria and documentation requirements, which may suit salaried individuals with stable income profiles. Housing finance companies, on the other hand, may offer more flexibility in assessing self-employed borrowers, small business owners, or those with non-traditional income sources.
There can also be differences in interest rate structures, loan tenures, processing fees, and prepayment conditions. Customer support, turnaround time, and regional presence may vary as well. By comparing multiple options, borrowers can choose a lender that aligns better with their financial situation, repayment capacity, and long-term goals, helping them avoid unnecessary stress and make informed borrowing decisions.
Read Also : How important is transparency in loan processing?