FAIR PRACTICE CODE

This document provides details of the practices which need to be followed by the Company to ensure fair and transparent dealings with its customers who approach it for obtaining a loan and for transactions with customers after the loan has been granted. This code will enable employees to provide better customer service and maintain transparency in business dealings with its customers. The Code has the following key elements.

Applications for loans and their processing


  1. Allcommunicationstotheborrowershallbeinthevernacularlanguage or a language as understood by the borrower.
  2. The loan agreement discloses the rate of interest charged from customer as also the other charges pertaining to the loan like processing fee, cheque bounce charges ,the amount of fees refundable if loan amount is not sanctioned/ disbursed, pre-payment options and charges, if any, penal interest/ penalty for delayed repayment etc.
  3. The Company must disclose ‘all in cost’ inclusive of all charges involved in processing/ sanctioning of loan application in a transparent manner. It should also be ensured that such charges/ fees are non- discriminatory.
  4. Loan application forms shall include necessary information which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other HFCs can be made and informed decision can be taken by the borrower.
  5. The loan application form may indicate the list of documents required to be submitted with the application form.
  6. Acknowledgement will be given for receipt of all loan applications. Preferably, the time frame within which loan applications will be disposed should also be indicated in the acknowledgement.
  7. The Company would verify the loan applications within a reasonable period.

Home Loan Interest Rate FAQs

An interest rate between 12.75% - 44% on a Home Loan is a good and affordable interest rate.

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Although the interest rate varies from lender to lender, the lowest rate of interest on a Home Loan is 12.75%

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It is when the loan interest rates remain unchanged throughout the loan tenure or repayment cycle.

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You can use TERA MERA GHAR HOUSING INDIA PRIVATE LIMITED AN ISO 9001 : 2008 Finance’s Home Loan EMI calculator, which will calculate the total interest payout based on selected factors such as the loan amount and tenure.

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The fixed interest rate on a Home Loan remains unchanged throughout the loan tenure. A floating interest rate fluctuates throughout the loan tenure.

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The interest rate on Rs. 1 lakh loan would entirely depend on the chosen loan tenure. If the tenure is less, the interest will be higher, while it will be lower if the chosen tenure is higher.

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The stamp duty charge is usually 0.1% on the total loan amount if the loan amount is less than Rs 10 lakhs.

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