The prepayment charges are levied because it disturbs the financial planning of the company. So you can appreciate the fact that the interest costs are not the only costs that you have to bear. Compare loan schemes of different finance companies This comparison can be on parameters such as interest rates, pre-payment clause, upfront fees, margin to be paid, maximum loan amount, eligibility, etc. Some companies also insist on the insurance of the property that you intend to finance. The cost of this insurance has to be borne by the borrower.
Some companies also offer certain add-on facilities to make the deal more lucrative.
These can be in the form of free accident-insurance cover or waiver of last two installments, if the earlier installments have been paid on time. Moreover, some companies also assist potential borrowers in locating the property within their budgeted means. Zero in on the company you want to take the funding from After weighing the pros and cons of all these factors, you can zero in on the company from which you want the funding. Read Documents carefully and ask questions Try to get a copy of the agreement or contract before you get into one. Understanding the important clauses within the agreement can help you avoid a lot of trouble in future.