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Precautions for home loans

If you are considering taking a home loan, it is necessary to pay attention to some important aspects. Taking home loans for a long time can sometimes be harmful. At the same time, both advantages and disadvantages may be faced with short -term loans. This is because long -time home loans are not always spoiled; Sometimes short-term loans prove to be more beneficial. Savings at the cost of interest makes short -term loans more attractive.

Suppose you take a home loan of 50 lakh rupees, then you will have to pay interest of 41.28 lakh rupees. But if you decide to repay it in 25 years, then the total amount of interest will be Rs 75.87 lakh. Choosing a short -term option can help you a lot, but long home loans also have their own advantages.

Experts believe that it is usually appropriate to take EMI of up to 40 percent of monthly income. However, many customers opt for high EMI to repay the loan rapidly. If a family puts a large part of their income to repay home loan, it can cause cash flow problems. It can be difficult to manage EMI if a job is missing or suddenly a big expense.

EMI in long -term home loans is usually lower than short term loans, which can provide some relief to the family. You can choose to repay the 25 -year home loan in 15 years, but for this you have to contact your lender and go through the verification process again.

If you do not pay EMI on time, your credit score may be affected. Therefore, customers should make a concrete plan to repay the home loan. In the event of a job missing, the bank will not give any concession in EMI payment. Therefore, experts recommend creating an emergency fund equal to domestic expenses of 6 to 12 months. A short -term home loan requires high EMI, requiring more emergency funds.