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05 October 2011

It Pays to Keep Periodic Checks on your Home Loan

Home loans as we know are a very long term decision and may involve at least 15 to 20 years. After you EMIs begin you are continued with a total amount for the EMI every month and this may go on for few beginning years. Many housing finance companies have kept a clause of change or subject to change in their home loans agreement and with this they can change some rules, EMI amounts and even time for repayment every month not only for new customers but also for existing home loan borrowers.
When you are a borrower of home loans it pays to keep a check on all yoru accounts and home loan documents. Always keep the record for every payment and eveyr EMI acknowledgement receipt in place. Fluctuating market trends and inflation times you never know when your existing home loan provider may change rules and you get a shock by seeing the raised EMI.
I know many times the amount may only change from a RS 500 to 1,000 but think long term and this slight increase in percentage of interest will make you pay heavy in the long term. With the Reserve Bank of India changing and increasing their interest rate for lending it is but natural for loan providers to increase their lending interest rates.

Periodic checks and being alert will help you to take a decision on the right time and your finances will not suffer long term. You may have the option to transfer your home loan to a better option with lowest interest rate and there are many lenders out there who are willing and happy to take over existing loans from borrowers of other housing finance companies. This is the market trend lenders need the borrowers as they have finances lying idle which can make money as interest on lending, and it is the borrowers who have the right to choice since they have the money!

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