How Banks Are SCAMMING YOU!!!

You go to a bank 🏦 for home loan. You are somewhat tensed as this is a very big decision.

You have heard a lot about interest rates rising, and in turn home loan loan EMI or tenure increasing. 😱

The loan official knows what is best for his bank! He is doing this job every single day, so obviously there is information assymetry. 🤨

Sensing your discomfort with EMIs rising in the future, he pitches a fixed rate home loan. 😒 You are told that you need not worry about changing rates as the interest will be charged at a fixed rate for this loan.

You may ask - so what Sharan? If my outgo is fixed, I will have a good night’s sleep. What’s wrong with that?

Well, there are no free lunches! The “fixed” rate may be fixed only for a fixed duration and may be revised under the “reset” cause in future. Maybe in the event of sharp interest rate hikes or even periodically say once in x years. 🥺

➡️ TL;DR - Please read your terms and conditions while signing off a home loan. Devil 😈 is always in the detail!

If something looks too good to be true, it probably is! 😇
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#financewithsharan #homeloan #homeloans #bank #banking #realestateindia #moneytalks #personalfinance