Home Loan: When taking a home loan, most people choose long-term loans to reduce EMI but let us tell you that taking a home loan for a long time can have both disadvantages and advantages. While taking a home loan, you should get information about interest rates, EMI (home loan EMI), and advantages and disadvantages. Today we are going to tell you about the advantages and disadvantages of home loans in this news, otherwise, you may have to face problems later.

Interest rates for home loans-

If you take a home loan, you can choose a short-term option, but long-term home loans have their advantages. If you take a home loan of Rs 50 lakh at a 9 percent interest rate for 15 years, then according to the calculation, you pay Rs 41.28 lakh as interest,

But if you decide to repay the same home loan over a long period i.e. 25 years, then according to the calculation, you have to pay interest of Rs 75.87 lakh (home loan ki by aj dare). Even though more interest has to be paid in long-term home loans. But it has many benefits. For this reason, long-term home loans can be chosen.

EMI should be this much for monthly income-

Some experts say that an EMI of up to 40 percent of monthly income (home loan EMI deferment) is considered correct, but sometimes it happens that customers want to repay the loan quickly and in this process, they choose a higher EMI option (Home loan EMI option). If a person invests a large part of his income to repay the home loan early, it can lead to cash flow problems. In such a situation, after taking the loan, if the person loses his job or decides to take a leave, if any expense increases in a month, then in such a situation it becomes difficult to manage the EMI of the house.

Benefits of taking a loan for a long period-

On the other hand, if you take a home loan for a long term, then the EMI is relatively low and the EMI amount is less on the loan of this period. In such a situation, if there is any problem related to cash flow, then it gives some breathing space to the family. You can prepay a 25-year home loan in 15 years while taking a loan, but you will have to contact the lender to extend the period of your home loan. You should try to contact your lender to extend the loan repayment period from 15 to 25 years and to do this you will have to go through the verification process once again.

Experts' opinion on emergency fund-

Not repaying the loan on time can cause a lot of trouble. If you do not pay the EMI on time, it can affect your credit score. While taking a home loan, the customer should first plan to repay it. If a person loses his job, in such a situation the lending bank does not give any concession on EMI payment.

Therefore, some experts have given their opinion that a person should maintain an emergency fund equal to 6 to 12 months of household expenses. If you take a long-term home loan, then a higher EMI on a short-term home loan requires a higher emergency corpus. Therefore, an emergency fund should be prepared for such a situation.

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