Loan: It is wise to reduce the loan installment, the installment of your house can be more expensive by one percent

Date:

Share:

The 0.50 percent hike in the RBI’s repo rate on Friday is not the last step. Nevertheless, the loan interest is expected to increase by at least one percent in the coming four-five months. This can mess up your budget. Ajit Singh’s report explains the mathematics of maintaining balance in the budget and avoiding the effect of high interest-

The time to take loans at low interest is now history. In Corona, people got such an opportunity, in which loans were being given at the lowest interest rate in history till now. The repo rate of RBI was 4 percent. Banks were giving loans at 6.4% interest. People benefited from this for around two years. But after the increase of 1.40 percent in the repo rate in the last three months, now once again the era of expensive loans has started.

Increased borrowing rates have a more significant effect on home purchases. due to the length of these loans. They have more of it as well. The majority of loans are taken out at a variable rate. Floating means that as soon as the RBI lowers or increases the rate, its effect on the loan starts. It doesn’t always imply that you’ve accepted a loan at the Base Rate, BPLR, MCLR, or EBLR. These are all different methods of interest rates.

If you are a borrower, opt for floating, if you are a  are taking
Take a loan now, then you can opt for a hybrid loan. For the first three years, take out a loan with a fixed rate. Later convert it to a floating rate. This will guarantee that changes in the interest rate won’t have an impact on the loan’s term or payment schedule. Keep in mind that sometimes the fixed rate is just a little bit more than the variable rate.

Change loans in low-interest rate banks
According to investment advisor Archana Pandey, there are past or present borrowers. In both cases, you should check the loan interest rate of all the banks. The interest rate offered by each bank varies. Some banks also waive processing fees. There won’t be any gain if the loan was already taken out at a low rate. since the rate will still be relatively low. But if you are paying a higher interest rate then you can switch it to lower rate banks.

NBFCs charge higher interest
Except for one or two non-banking financial companies (NBFCs), most NBFCs charge higher interest. because they pay a hefty price for their money.
If you have a good income, and a good CIBIL score, you can convert it to a bank. Keep in mind that the interest rates on each should differ by at least 0.5 percent.
If the credit score. CIBIL is very good, then you can also negotiate and take a loan from the bank at a lower rate.

Read More: ITR Last Date: Now these people will be able to file Income Tax Returns till 31st October, and will not be fined.

If there are old borrowers, then check EBR,

If the loan is before October 2019, it can potentially be in MCLR or Base Rate, or BPLR. Loans after October 2019 are given under External Benchmark Rate (EBR).

  • If the loan is old, check its interest rate. If there is high interest then you can bring it into EBR by paying a nominal fee. This will lead to some savings every month, which will be visible in the long run.
  • If the budget is disturbed due to an increase in installment, then you can extend the tenure of the loan. The loan’s term will be determined by the borrower’s retirement age, which is between 60 and 65.

🔥🔥 Join Our Group For All Information And Update, Also Follow me For Latest Information🔥🔥
🔥 Facebook Page                  Click Here
🔥 Twitter                               Click Here
🔥 Instagram                  Click Here
🔥 Google News                  Click Here

Subscribe to our magazine

More Like This

Here are the details for Bank of India recruitment, direct interview no exam

Leading public sector bank Bank of India has released a recruitment notice for the position of Specialist Security Officer in MMGS-II. Online applications will...

Lava O2 is now on sale! with a price tag of just Rs 7,999 with these features

The Lava O2 smartphone, which is priced at Rs 7,999 on Amazon, is being sold by Lava International Limited, an Indian smartphone company. Customers...

Samsung Galaxy S22 5G bumper discount! buyers would save Rs 46,000

The flagship smartphone Samsung Galaxy S22 is still in high demand. Currently, purchasing this high-end smartphone doesn't require spending a lot of money. The...

Force Gurkha 5-Door, new ‘enemy’ of the Mahindra Thar & Jimny, to launch soon

The 5-door Gurkha may soon be available in India thanks to Force Motors. The teaser has now been issued by the corporation. Within the...

Tata launched 5 new variants of Nexon at cheap prices! know details

Tata Motors has introduced five new Nexon versions to increase the range. The AMT vehicles are additional Nexon variants to the current petrol and...

LEAVE A REPLY

Please enter your comment!
Please enter your name here