5 Things To Remember When Taking Education Or Home Loan
Take notes!
In life, people have many dreams and goals to achieve. With time people are learning the importance of education and the youth of today no longer want to burden their families with the rising education expenditures. Another dream goal one set in life is to have a house of their own. Well, both are achievable with the option of loans lend by various banks. But there are a few points that an individual needs to be careful about before signing up for education or home loans. Since these things involve a lumpsum amount, it’s essential to be considerate about many aspects of it. Some of the well-known finance influencers have also shared their inputs for the same.
Interest Rates
Firstly, it is very important for an individual to check the interest rates that the banks are offering and accordingly decide. Finance influencers Shreyaa Kapoor and Anushka Rathod, both agree that one should check whether the interest rates are floating or fixed. The first kind does not vary but the latter varies with market rates. Anushka Rathod further added that irrespective of the type, an individual should choose offers that give them a competitive interest rate after comparing a few lenders.
The Loan Amount
An individual should be very careful about the final loan amount that will be offered by the lender. Making things a little easier for all of us, finance influencer Anushka Rathod shared her knowledge on the same. As per Anushka, the thumb rule for the load amount is 3-30-30-20. Explaining the same, she added, that the loan amount should be 3 times more than a person’s annual income, 30 per cent EMI, 30 per cent down payment and 20 years time period for the loan to be repaid.
https://giphy.com/gifs/fire-death-dead-xUA7aUWKEX02XdBp7y
Also Read: How To Negotiate Salary With HR? Remember These 4 Tips Because Yeh Skill Bhi Zaroori Hai!
Explore Options
Shreyaa Rathod reminded everyone that before jumping on any education and home loans, always explore the options because there are many in the market. The more one explores, the better chances are for ending up with a good deal.
https://giphy.com/gifs/soulpancake-youtube-travel-A01J1PFAXrvLa
Tax Advantages
Finance Influencer Chandralekha also shared her input on the topic. As per her, students studying abroad should ask their parents to pay and use tax advantages on education loans effectively. She further added that by doing this, one can cut down on interest costs.
View this post on Instagram
Prepay Home Loan
Chandrelekha also shared her financial knowledge on home loans, as per which, an individual should try and prepay the home loan in the early years when there is an increase in the interest rates. She further added that one should also keep proper track of the interest rate cycle and save money for the prepayment.
https://giphy.com/gifs/MyLeadGlobal-cash-bank-bogactwo-8xoZGp16eCZoN7KJ1d
First Published: June 28, 2023 2:36 PM5 Saving Options If You Earn A Minimum Salary Of 25K Now But Want A Luxurious Future
