NEWS & ADVICE : HOME LOANS
The right age for home loans!
By Joseph Samson
Print    Email    RSS   

A person generally buys his/her dream home only once in their lifetime. These days, most of the people buying their house, do that with the help of a home loan. However, what are the important characteristics of a home loan?

The answer to this question brings us to two very key terms: interest rates and home loan tenure. Generally, the home loan tenure isn’t given as much importance as the interest rate, or even the repayment options. However, the point of this article is to emphasize on the importance and utility of the home loan tenure, which is the need of the hour given the current rise in interest rates by banks and other lenders.

The focus of this article would be to on one of the most important yet not known aspect that helps in deciding home loan tenure: the age of the borrower.

AGE CRITERIA

If you have ever wondered why banks are keen to know the age of the borrowers, it’s because of this reason. Banks have a policy that the younger the borrower, the higher is the loan tenure available for him/her.

According to the eligibility criteria decided by banks, the age of retirement is 60 years in case of a salaried individual, while it is 65 years in case of a self-employed individual. According to this, if one decides to take a loan in his 30's, the maximum loan tenure offered to him/her would be 20 years. Even though, some banks offer home loans for 25 years, but that is an exception rather than the rule.

These days, due to the inflation and the monetary tightening installed by the Reserve Bank of India, banks have been revising the interest rates charged from their customers. Before taking a home loan, one must always take into account the fact that interest rates fluctuate during the loan tenure. These fluctuations and revisions also have an impact on the home loan EMI, irrespective of the face if one takes a loan at a fixed interest rate or floating interest rate.


Page  | 12 |  
(Comments Posted : 2) Post Your Comments
1. dont listen to this scrap guy- amit. He has dual standz. I think amit is a sick moron. If loan goes well its the credit of the person and if gone bad its banks issue. what a funny chap. Why blame banks if financial desciplne cannot be maintained by loanee. Take loan with fullest confidence with FOIR not over 70-80%. Meet the obligations on time and have a better credit history. Earlier is better whether it's investment or loan.
sumesh (Posted: Aug 2, 2011)
2. What a stupid article. Though the things mentioned are true but what abt the burden on young folks. Taking loan at young age puts undue pressure on individual, just to increase the tenure taking loan is utterly stupid.
Once you are earning a decent salary with some good down payments only then one should go for a loan, at taht time anyways you will not need a tenure more than 20 years. This article again seem to be a paid one by banks who wants more and more income by distributing loans at high rates to young individuals
Amit (Posted: Feb 25, 2011)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
NRI Banking in India
Stop worrying for your home loan: Get it...
Refinancing your home loan: is it a...
NRI Home Loan: A friend for the non-residents
Identify the cheapest home loan offer


HOW CAN I GET MY LOAN A/C STATEMENT
my home loan A/C is 33019926786. want to view status...
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive