Hi….remember you got a Surplus or a Shortfall….!!!! What if you get a shortfall !!!
If there is a shortfall, then it would mean your expenses are more than your income…which is not a good situation financially. There is also a possibility that you have taken a loan …..a Home Loan, a Personal Loan, EMI running on your Credit Card or a Car Loan. There could be also an Educational Loan which would eat into your income. It could be single or multiple.
There are a few important points to be kept in mind while taking a loan. The largest number of loans taken are mostly Home Loans.
Some tips while taking a Home Loan :
- If the loan is in joint ownership, it is important to take a legal advice before going in for a co-ownership. In a joint ownership, it is recommended that you keep an account of how much each one has contributed should a dispute arises in the future.
- Shop for a competitive interest rate. Remember you can always negotiate the interest rate and bring it down by .10-.50 basis points. It sounds very little but if you compound it for a long period, it is quite sizeable.
- You must take an Amortization schedule from the bank/ financial institution offering the loan which gives a break up of Principal and Interest schedule payable till maturity.
- If you are salaried or self employed, then there is a cap on the EMI which can be drawn.
- Incentives are not taken into account while determining the eligibility criteria for taking a loan.
- There are no tax benefits for buying plots.
Look out for more such tips….
Till then…will be back soon….