look news india
Home Loan Tips: Everyone dreams of having their own house one day. For this, a person works hard all his life. However, when it comes to buying a house, 80-90 percent of people take a home loan. Not only this, they also invest their savings in it at this time. Most people often make a mistake after taking a home loan, due to which it takes them 25 to 30 years to repay the loan and sometimes it takes even more time to repay a loan that can be repaid in 20 years.
How does the tenure of a home loan increase?
When interest rates change, it does not increase the bank EMI but the home loan repayment period. Most people do not pay attention to this at first. Later, when they realize that their loan tenure has become much longer, they complain to the bank.
Why is the home loan EMI increased throughout the year?
Banks cannot change this. In such a situation, they increase the tenure of your home loan so that money can be charged from you according to the increased interest rate. Because of this, home loans that expire in 20 years often continue for 30 years.
Let us understand with an example
Suppose you have taken a loan of Rs 30 lakh for 20 years at the rate of 8 percent. In this way your EMI will be around Rs 25,093. Suppose after 5 years of taking a home loan, the rate of your home loan becomes 11 percent. At this time the principal amount of your home loan will be around Rs 26 lakh, because in the initial years the interest part is more in the EMI, while the principal part is less.
Know how the period will increase
In the situation after 5 years, you may think that now there are 15 years left of EMI, but it is not so. If your EMI is Rs 25,093 as before, then your remaining loan period will be 28 years instead of 15 years. Here, if your EMI is considered on the basis of 15 years, then it will increase to about Rs 29,500. What you had to pay in 20 years, will now take about 33 years…
Know how the period will decrease…
If you don't want your home loan tenure to increase every time interest rates rise, you will have to talk to the bank and restructure your loan. This means you will have to ask the bank not to extend the tenure but to increase the EMI according to the new interest rate. Most customers make this mistake and do not restructure the loan taken from the bank.
