Zero processing fee in home loans means that the lender is not charging a fee for processing the loan application. This can be an attractive option for borrowers, as it can result in lower upfront costs for the loan.
However, it's important to note that while a zero processing fee may be appealing, other fees, such as appraisal fees, legal fees, and administrative fees, may still apply. Additionally, the interest rate and loan terms offered by the lender may be higher to compensate for the lack of processing fees.
Therefore, when considering a home loan with zero processing fee, it's important to carefully review the overall cost of the loan, including the interest rate, repayment period, and any other fees, to ensure that it is the best option for your financial needs.
It's also recommended to compare home loan options from multiple lenders, including traditional banks and non-traditional lenders, to find the best deal for your specific financial situation.
Note: The above list is indicative and your lender might ask for additional documents.
Yes, The repayment of the principal amount would qualify for tax deductions under Section 80C of the Income Tax Act. The repayment of interest component would qualify for tax deduction under Section 24(b) of the IT Act.
With home loans, you have the option of both floating and fixed interest rates.