Given the prices of houses in our country, almost everyone must take a home loan to purchase their dream house. It is not that all buyers lack the capacity to buy a house out of their own funds. However, from what I have been, as the income (affordability) rises, so does the desire for a… Continue Reading
This home loan variant may go by any nomenclature, but the concept remains the same. You take a home loan. You have an “Excess Account” where you can keep your excess funds. You can also call it “Overdraft Account.” In the next month, interest is calculated only on the (Home loan outstanding – Balance in… Continue Reading
A loan is a contract. And a contract can be worded in any way. Minor changes in the wordings or the product structure can make a huge difference. A borrower must understand the loan structure properly before choosing among the various loan options. We have all read about SBI Maxgain and other home saver loans.… Continue Reading
The loan amount is already decided. You do not control the interest rate. The only aspects where you have discretion are: Loan Tenure Pre-EMI or Full EMI Regular home loan scheme OR Home-saver loans (such as SBI Maxgain) #1 Choosing the Loan Tenure We have this tendency to close the home loans as soon as… Continue Reading
Given the property prices, most of the home buyers take a home loan to fund the purchase. While finalizing a loan product, one of the critical decision factors is the loan interest rate. Clearly, you would prefer the lowest rate of interest. Competition in the home loan segment has ensured that the interest rate for… Continue Reading
If you want to repay your home loan quickly, the only way out is to make some prepayments on the home loan. Many use their annual bonuses to make big prepayments on their home loans. Not surprising that average home loan tenure in India is about 7-8 years. What if you can’t manage very big… Continue Reading
Most home loan borrowers face the dilemma of whether to use their monthly savings to prepay their loan or set it aside for emergencies. In most cases, the extra money just sits in their savings accounts earning below par (and taxable) interest. A home saver loan lets you have the cake and eat it too.… Continue Reading