At the time of applying for a home loan it is essential to understand the lending terms. This will help you opt for flexible repayment options over a chosen tenure with affordable interest.
Do you know how interest is being calculated on house loans? Are you aware of the multiple ways of repayment methods according to your need and comply with the RBI guidelines for Home Loan?
You can choose to repay by electronic method, by post-dated cheques, through direct payments etc. No matter which method you choose you can pay off the loan before its due date and finish off the loan.
Loan with Floating Interest Rate
To create an easy EMI structure, you can avail a home loan from a lender offering floating interest rate. These are floated especially during festive seasons or on special occasions by the lender and they will help you cut down on your repayments.
Loan with Longer Tenure
You can opt for home loan with longer tenure as it will allow you to pay up the loan conveniently. This might also help you in planning for the repayments better and then schedule them.
Loan with EMIs Waived Off
If you are paying your home loan consistently your lender might waive off few of your EMIs. In the long run you will be able to save as well as pay up your loan on time.
Loan with Increasing EMIs
You can pay off your loan faster by increasing the amount of your repayments. Even when done by a small margin will add up to an appreciable amount by the end of the tenure.
Loan with Decreasing EMIs
Just like increasing, there are several lenders who can offer loan with decreasing EMIs over a period.
For more information, read this: 7 Best Options to Repay Your Housing Loan With Ease
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.