The number of housing loans availed in the previous fiscal year grew by nearly 14% due to the rising demands across India. With the repo rate cut announced by RBI in their bi-monthly monetary policy, the interest rate for loan repayment has been considerably reduced.
Hence, it is better to use a loan EMI calculator and plan your repayments in advance for a convenient repayment. Here is a stepwise process to plan your home loan earlier -
- Step 1: Consider the loan amount
Assess the loan to value ratio of the property you are about to purchase. Opting for a higher loan amount will reduce the down-payment and make repaying easier.
- Step 2: Evaluate your current financial condition
In case you have a regular source of income, opt for a higher EMI amount as it will help you repay the loan much faster.
- Step 3: Determine your expenses
Evaluate your current and future expenses. Ensure your debt to income ratio is less so that you can repay all the dues conveniently.
- Step 4: Decide your repayment tenor
Opting for a longer tenor will reduce the payable monthly instalments. Calculate the amount using a loan EMI calculator.
- Step 5: Check the interest rate offered
Check for a lender that offers affordable interest for both floating and fixed rates.
Also Read: Steps to Lower the Housing Loan EMI
