Some lessons on loans


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 :

  1. 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.
  2. 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.
  3. 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.
  4. If you are salaried or self employed, then there is a cap on the EMI which can be drawn.
  5. Incentives are not taken into account while determining the eligibility criteria for taking a loan.
  6. There are no tax benefits for buying plots.

Look out for more such tips….

Till then…will be back soon….


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