Buying a house is an important decision as it is a life time investment. When investing in a housing property, it is crucial to carry out the process with utmost care, as even a small mistake can put you in a huge debt situation. From selecting the property to borrowing a Home Loan, every step should be well planned. After essential planning and a lot of thinking an individual should borrow a Home Loan.
There are many financial institutions which offer Home Loans for the investors willing to invest in housing property. One of the most overlooked aspects of the Home Loan business is the direct selling agents.
Who are direct selling agents?
A direct selling agent is an individual who assures the compliances to achieve sale objectives as well as manages to sell various products professionally. Besides this, the agent also guides the customers with their queries and assures an optimal usage of the sales tool.
Mentioned below are few of the functions of direct selling agents:
- Coordinates with the investor and introduce him to all plans and services offered by different Home Loan lenders.
- Has an updated knowledge about all financial institutions as well as the products and services offered by them.
- Maintains information about the competitors’ products and services as well as examine gains and weaknesses of all the products.
- Maintains all the documents and records of sales activities and provides information to the customers as per the requirement.
- Is involved in all the meetings conducted by the department and offers training for the same.
What are they actually doing?
Direct selling agents are seen to manipulate the Home Loan buyers by misguiding them. They tempt them in purchasing the product which won’t prove to be beneficial for them. The majority of the mislead activities are going on in the Home Loan balance transfer market.
Many of these direct agents are assuring people to avail a Home Loan with easy processing by asking them for an agent fee. After taking the fees, the agent shows no sign of completion of the Home Loan process. Thus, over here the buyers get tempted to avail a Home Loan and end up paying unnecessary agent fee. Such complains have been growing nationwide, and thus the government has started taking considerable steps to stop such practice.
The National Housing Banks (NHB) has set a goal to introduce a set of agents who are well trained and can help the customers who are willing to buy a Home Loan. The NHB is also analysing the balance transfer done by many Home Loan buyers, whether the decision was self-taken or was influenced by the direct selling agents. In reality, the customer is free to choose a financial institution wherein he/she wants to avail a Home Loan from. Thus, the NHB aims to not take away the freedom from these Home Loan buyers.
What precautions should Home Loan buyers take?
When availing a Home Loan, it is important that you research well and be aware of such direct selling agents. Also, if you are an existing Home Loan buyer when opting for a Home Loan balance transfer, it is crucial that you only opt for a balance transfer if required. However, if you are not facing any financial problems while repaying your Home Loan, then transferring your Home Loan account can be an unnecessary step.
Above are the few precautions that you should follow before deciding to go for a balance transfer or a Home Loan with a direct selling agent.