A house is a big investment so it requires meticulous planning. From choosing the right location to right budget and the right bank for the home loan, all needs attention. The customer, apart from the interest rate, tenure and customer service, should also compare the home loan repayment options that the bank is offering.
It is extremely necessary to consider the long tenure of the loan and the amount to be contributed every month to repay the loan.
According to kreditai.INFO, there are many home loan repayment options to consider like what is the moratorium period to delay the start of EMIs. Interior decoration, repairs, registration fees, stamp duty, brokerage, etc would require significant part of the income. This needs to be considered too.
Best deal here is to see whether the bank or the NBFC (non-banking financial companies) allows a moratorium period of 3 to 36 months that delays the start of equated monthly installments (EMIs) towards the loan. The borrower then needs to pay only the required pre-EMI interest and not the installments.
It is possible these days to choose ascending or descending application on the amount that goes towards repayment of the loan. Banks or financial institutions specialized in housing finance have loan products that allow this facility known as “flexible installment plans” or similar names.
Certain banks allow linking the home loan with a saving bank account that will be opened at the same time of taking the loan.
The facility allows the borrower to deposit their savings in the linked bank account to make the interest liability to the extent of surplus parked in the account thus helping making sure borrower’s overall interest burden is a reduced.