What you don’t know about housing loans in India – Part 1

Last year I bought a home in Chennai and I availed a loan from ICICI bank. In my upcoming blogs I will share what a person like me normally goes through and what you might want to know upfront so that you make an informed decision.

First thing you might want to know: The banks are very forthcoming in giving out loans. You will find that you can easily get a loan of even 1 crore rupees pre-approved with very less paperwork. Gone are the days when it was difficult to get loans. With proof of steady income you can easily get a loan of upto 2x or 3x of your annual gross salary without any problems. You will be amazed by the so called “service” that some banks offer you these days. They send sales people to your homes to get all paperwork filled up. They go above and beyond to hook you up with a loan. You might think that it is wonderful customer service, but watch out if you do not know what you are getting yourself into, you might be up for a huge roller coaster ride. The media does not cover the dark side of this due to obvious reasons, they get significant ad revenue from these big banks. More to follow.