home loan rate of interest, got stuck! Thought home loan would be repaid while in job, EMI will have to be paid even after retirement due to rising interest – home loan emi biggest challenge for home buyers
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Will not stop chasing even after retirement
The home loan you had taken thinking that you would be debt free by repaying it while working, your hopes have been dashed. You may not have even noticed this. The interest rate charged on your home loan is continuously increasing. The loan you took a year ago at an interest rate of 6.5 or 7%, after one year it has crossed 9.5% and 10% in many banks. Loan interest rates are increasing, but your EMI is not increasing. Just think why? Instead of increasing the EMI, the bank keeps on increasing the tenure of your loan without informing you. The tenure of people’s home loan has increased by 2 years. That is, the loan you had taken for 20 or 30 years, now it has increased to 22 and 32 years. If you understand in simple language, the home loan EMI is not going to leave you behind even after retirement.
The pain of private employees
The condition of those doing private jobs is even worse. The loan tenure has increased from 2 to 2.5 years. Rohit Jaipal, a private employee, had taken a home loan of Rs 50 lakh from HDFC Bank in April 2022 at the rate of 6.5 per cent. Today the rate of interest has reached 9%. Due to the increase in interest rates, the tenure of his home loan has reached after his retirement. Lakhs of people like Rohit are getting surrounded by this problem. Now just imagine that after retirement, when your monthly salary stops, your income will decrease. How will you be able to bear this burden of EMI. How will the burden of EMI be borne amidst all the expenses in rising inflation?
How will this burden be reduced
- To reduce the burden of home loan, you can keep a few things in mind.
- If you transfer your loan to a bank where loan is available at low interest, then you can get some relief.
- You can reduce the loan burden by prepaying some part of the loan principal.
- You can negotiate to reduce the home loan interest rate by going directly to the bank.
Home loan interest reaches 6.5 to 9% in a year
A year ago, home buyers were getting home loans at the rate of 6.5%, but in the last 10 months home loan interest rates have shot up tremendously. Those who had taken loan at the rate of 6.5% in April 2022, now they have to pay interest at the rate of 9%. The tenure of loan repayment has reached after retirement. The rapid increase in the repo rate by the RBI is the reason for the jump in home loan interest rates. In today’s date, it has become difficult for people to buy a house. Many such cases have come to the fore, in which the loan maturity period has exceeded even the retirement of the borrower. Those people who have taken home loans on floating rates are in for a shock. Floating rates means the tenure or EMI of the loan increases as the interest rate increases.
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