1.In the rising rate of interest scenario the individuals who have availed floating rate of interest are in fix as the burden is becoming unbearable.
2.Options are being presented below to fight rising rate of interest.
3. TWO YEAR OLD LOAN:In past two years seven rate hikes have taken place and increased rate of interest by 4 percent leading to unbearable EMI and tenure.The best option is to prepay the loan by using all your assets earning interest at lower rate of interest.Early repayment make sense as initial period of EMI accounts for more interest paymrnt.
4. FOUR YEAR OLD LOAN:You have benefitted as you had borrowed at higher rate and enjoyed lower rate of interest scenario prevailing in past after you had availed your loan.Presently due to increase in rate of interest your tenure must have had increased by approximately 11 months.You have two options either to prepay by dipping in your savings yielding lower rate of interest or get your EMI or tenure increased but make sure that EMI outgo should not be greater than 40% of your gross monthly income.
5.SEVEN YEAR OLD LOAN:Your bulk of interest repayment has taken place .You have benefitted most from falling rate of interest as your rate of home loan interest was much higher than prevailing rate of interest.So you can continue with your home loan.
6.FRESH HOME LOAN SEEKERS:Wait for some time as it is expected that either property prices will fall or rate of interest for home loan will fall as such higher rates is not sustainable.However if cannot wait than scout for cheapest floating home loan from public sector banks like Canara Bank (9.75%),Bank Of India(7.5%),Punjab National Bank(10%).Private sector banks like HDFC (11.25%) and Icici Bank(12%) rate of interest are higher but their service is better than PSU banks.
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This blog is a personal blog written and edited by me. For questions about this blog, please contact me.
This blog accepts forms of cash advertising, sponsorship, paid insertions or other forms of compensation.
This blog abides by word of mouth marketing standards. We believe in honesty of relationship, opinion and identity. The compensation received may influence the advertising content, topics or posts made in this blog. The owner(s) of this blog is compensated to provide opinion on products, services, websites and various other topics. Even though the owner(s) of this blog receives compensation for our posts or advertisements, we always give our honest opinions, findings, beliefs, or experiences on those topics or products. Every effort is made to make the sponsored post identifiable but at times due to advertisers restrictions the same may not be feasible all the time.The views and opinions expressed on this blog are purely the bloggers' own. Any product claim, statistic, quote or other representation about a product or service should be verified with the manufacturer, provider or party in question.
The owner(s) of this blog would like to disclose the following existing relationships. I have a interest in real estate field which may influence the style of writing.
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