Home Loan Repayment Options You Can Consider
Home loan is the most important financial assistance during the time of purchasing a home property. But availing a new home loan is as important as repayment of the loan borrowed. Thankfully, in India, banks have come with tailor made repayment options to help borrowers repay outstanding loans without hassle. Typically, a home loan borrower considers numerous things like age, financial status, repayment capacity and other factors before choosing a home finance. The article highlights such repayment options mentioned in the following lines.
Step-up Repayment Option
The underlying objective of this repayment option is to lend borrowers more loans as compared to other prevailing home loans; however, the borrowers have to pay lower EMIs in the initial years which increase according to growth in income. In other words, this repayment option allows borrowers disbursal of loan at lower EMIs initially and the same EMIs will increase as per the growth in annual income of the borrower.
Flexible Loan instalments Option
In the context of flexible loan instalment option, it is tailor made for those borrowers with high probability of change in repayment capacity. At the retirement age of a borrower, the expected repayable loan is designed with higher EMIs in initial years but it subsequently decreases according to the reduced income of a borrower. Unquestionably, such repayment option is ideal for long term home loan where in the borrower can combine income and pay back the loan without any hassle at the retirement age.
Balloon Repayment Option
This option helps borrowers repay loan with low EMIs in the initial years. But at maturity of loan, borrowers have to repay lump sum amount. This concept of repayment option is derived from balloon swelling at the top. However, borrower has to ensure bank that he/she will be capable to repay the loan with a lump sum amount.
Accelerated Repayment Option
According to this method of repayment, borrowers can increase their EMIs as per the growth in income. Hence, this option allows borrowers repay the loan much faster by increasing EMIs rate according to the growth in income. Hence, with this option, the borrower is at its sole discretion to repay the loan followed by hike in income.
Based on the above-mentioned repayment options, a borrower has various ways to repay their home loan. Choose any one of the mentioned options as per your requirement and pay back the loan with ease and comfort.
A home loan borrowed involves various repayment options for its final disbursement. There are various such options by which a borrower can repay home loan without any hassle. However, choose your option as per your requirement.
Step-up Repayment Option
The underlying objective of this repayment option is to lend borrowers more loans as compared to other prevailing home loans; however, the borrowers have to pay lower EMIs in the initial years which increase according to growth in income. In other words, this repayment option allows borrowers disbursal of loan at lower EMIs initially and the same EMIs will increase as per the growth in annual income of the borrower.
Flexible Loan instalments Option
In the context of flexible loan instalment option, it is tailor made for those borrowers with high probability of change in repayment capacity. At the retirement age of a borrower, the expected repayable loan is designed with higher EMIs in initial years but it subsequently decreases according to the reduced income of a borrower. Unquestionably, such repayment option is ideal for long term home loan where in the borrower can combine income and pay back the loan without any hassle at the retirement age.
Balloon Repayment Option
This option helps borrowers repay loan with low EMIs in the initial years. But at maturity of loan, borrowers have to repay lump sum amount. This concept of repayment option is derived from balloon swelling at the top. However, borrower has to ensure bank that he/she will be capable to repay the loan with a lump sum amount.
Accelerated Repayment Option
According to this method of repayment, borrowers can increase their EMIs as per the growth in income. Hence, this option allows borrowers repay the loan much faster by increasing EMIs rate according to the growth in income. Hence, with this option, the borrower is at its sole discretion to repay the loan followed by hike in income.
Based on the above-mentioned repayment options, a borrower has various ways to repay their home loan. Choose any one of the mentioned options as per your requirement and pay back the loan with ease and comfort.
A home loan borrowed involves various repayment options for its final disbursement. There are various such options by which a borrower can repay home loan without any hassle. However, choose your option as per your requirement.
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