Here are some of the most important things that home loan people need to pay attention to and want to share with you today. Most of us are take loans to building a home. But we all have a hard time repaying our loans these days.
Because there are those who have lost their jobs and there are those whose salaries have been halved. Failure to pay for a month will result in a huge loss. And it’s had to climb back out of it. Today I am going to share with you how we can repay our home loans quickly.
If we put up a house worth Rs 30 lakh, we usually given Rs 10 lakh out of our hand and take the rest as a home loan. Average home loan venture is 25 years. The borrower will have to pay interest for the rest of his life.
The amount we take as loan is called the principal amount. Secondly the interest charged by the bankers on the amount we take. Next is the total time of the loan called tenure.Next up is the interest rate of the loan. Generally the interest rate is 8%.
When we pay the loan every month, only a small amount of it is added to the principal amount. Most of the cash we pay goes to interest. The loan tenure will be reduced once an amount is paid on top of the EMI from the beginning.
It will also help reduce interest rates. We can save a lot of money on long even a small interest rate reduction.So contact the bank and make sure that we are getting the benefit.
Now interest rates are falling down. During these times the RBI has downgraded interest rates on banks.Current repo rate is 4%. Bankers should reduce the interest rate on their loans. But bankers will not do this. Contact the bank directly, when you know the RBI reduced the repo rate.Switch over to another bank only if the interest rate is less than 1 % of minimum.
Check if the mechanism that calculates our home loan interest is MCLR. The law requires the customer to reduce the RBI repo rate for those with a MCLR mechanism. Every one after 2016 is under the MCLR. Non MCLR s can also convert to it.
There is a home loan overdraft facility. Mainly it is useful for business.Because their income is not fixed. It has the option of paying more than the EMI. The amount we pay extra is converted into an overdraft facility. The amount to be paid extra will be deducted from our principle amount. Then we can take the money from the overdraft and pay the EMI.When you get a home loan try to close it immediately.