Home loans are a very convenient option for a customer to have a home of his own but sometimes if the loans are not managed well they might be cause of worry for the borrower. That generally happens due to lack of planning. So, a borrower should plan the loan well before he goes for it.
A borrower should start saving funds before he apply for a home loan as a borrower is required to pay 20% of the actual price of the property for loan above Rs. 20 lac as down payment.
A borrower must track his fund inflow and his expense pattern so that he can get a idea of how much will he be able to repay as EMI. Ideally a borrower must restrict his monthly EMI to 40-45% of his total income and considering the present scenario a borrower must always be ready to handle higher EMI due to hike in interest rate.
Before a borrower applies for a loan with a bank he must get his basics right, a borrower must always look for a lender offering lowest possible rates and also he should get an idea about the terms and conditions for loan.
Borrowers also have option to go for maximum possible tenure to reduce the EMI burden but in that case a borrower will have to shell out extra amount as interest.
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