Curated By: Business Desk
Last Updated: September 04, 2023, 20:41 IST
People take home loans in hopes that they will own a home, and will be able to repay the money on time. But paying a home loan can become a big hassle and tension for anyone. So, it is important to know how to choose the right tenure for your home loan repayment. Let us take a look.
To start, it is important to know about your financial situation and you have to make sure that you are financially capable of getting a home loan. For this, you have to remember what is your salary, monthly expenses and savings. Taking into account all this, you have to choose a tenure that does not disrupt or put pressure on your salary.
A home loan tenure depends on many things apart from finances like age and retirement time. Many banks offer home loans on a period of repayment of about 30 years. However, the banks also require their borrowers to complete the loan payment before their retirement.
Taking a longer tenure, as mentioned above, reduces the monthly EMI and it becomes easily manageable. But since it is a long-term tenure, the interest in it becomes high. You should opt for this tenure only when you have a limited budget and other expenses are high.
If someone has a good and stable monthly income, they can go for short-term tenures to get rid of the loan in less time. They will have to pay less interest on this type of loan.
So, it is very important to evaluate every aspect of your financial situation to get a home loan. To do that, you can take the help of an online EMI calculator. It helps to ensure that your loan borrowing and repayment schedule remains undisturbed. The calculator generates the EMI using only your tenure, interest rate and loan amount. Through all this, you have to keep in mind the pre-payment options, and the changes that could come in your salary during the tenure of the loan payment.