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13 August 2011

What to do in Case of Branch Shifting or Closure of the Home Loan Bank

After all the applications and approval of your home loan you are happily paying your EMIs every month. The home loan amount being very large along with the rate of interest the borrower has to maintain relationship with the lending bank for many years. There are bound to be unexpected problems coming up within the long repayment tenure of 15 to 20 years.
One of the problems coming up from the side of the lending institution is that the bank may shift their branch to some other place. It can also happen that the bank may close down. What can the borrower do in these circumstances?
Home Loans Simplified Facts

The borrowers have to therefore keep regular contact and communication with the lending institution. The most important point here is that any borrower has to get an understanding and working of the bank before committing regarding the home loan and signing on the dotted line. Peruse the documents very carefully and understand all aspects and clauses mentioned in the home loan document. In case there are any queries or doubts then you can clarify them with the financial counselors.
This will help you to get a clear picture about the amount you have to pay and the facilities you get regarding and default or unexpected problems. Here the borrower can also discuss all other matters which may or may not be mentioned in the document. These include sudden problems with the financial status of the bank, like bankruptcy, losses, inflation;  shifting of branches of the bank and how to follow up on future payments; loan recovery procedures adopted by the bank in case of your delay in payments; in case of take over by other bank due to failure of your bank too keep up financially; any other problems due to unexpected natural calamities or hazards.
Though many housing banks and loan lending institutions that have clause for these factors, usually they are written in technical terms which is not easily understood by the borrower. Hence you must clarify all these doubts before getting your home loan approved. In times of uncertainty it pays to talk and enquire more and keep your options open.
All the Best from Rizwana!
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