Home loan offers: Keep an eye on caveats before choosing a lender

They may be available only to those whose credit score exceeds a specified level or who buy insurance also

Just as property developers are deluging prospective homebuyers with price discounts, payment plans, and freebies, banks and housing finance companies (HFCs), too, have come out with special offers on home loans this festive season. These include lower interest rates and complete or partial waiver of the processing fee.

If you have to choose between a lender offering a special interest rate and one offering concession on the processing fee, go with the former. “The processing fee is a one-time concession, while the benefit of a lower interest rate will accrue for a longer period,” says Arvind Rao, chartered accountant and