New Delhi: The problem for middle class families is compounding with surging inflation. But the takers of home loan could lessen their burden by opting some options. (JPN/ Bureau)
Pay loan before time
According to analyst, if situation favours, a part of the principal amount of the loan should be paid before the due date. It can lessen the burden of monthly installments. Executive Vice President of Edelweiss Housing Finance, Anil Kothuri, said, “In present scenario, this appears to be the best way to get rid of the burden of the home loan.”
In the last two years, the EMI of home loan has averagely increased upto 25 percent and the maturity period of loan has also increased by 50 percent that means the period of 20-year loan would increase to 30 and it would not be wise to pay installment upto 30 years. So it is advised to pay a part of the principal amount with the additional savings of the customer.
Up monthly installments
According to the banking sector, raising monthly installment could also be a viable alternative to lessen the burden of home loan. Aapnapaisa.com CFO, Balwant Jain says as the annual income of urban home loan takers is steadily increasing, they should prefer to pay bigger EMI. This step would render results in the long run to the person as the principal amount will get decreased.
Pay EMI for longer period
If the home loan is taken for 20 years, then the maturity of the loan should be fixed for 25-30 years. Jain says that banks usually are willing to extend loan maturity period of the client to 60 years.
New Delhi: The problem for middle class families is compounding with surging inflation. But the takers of home loan could lessen their burden by opting some options.