By Author: Fayeem
Getting a home loan is easy however understanding the EMI process is what is difficult. We should compare every bank and financial center before borrowing money. Each bank has different EMI based on their rules and regulations. As said earlier, the interest is higher than the home or business loans. The EMI will also be higher compared to the principal amount bought. Especially, if you are getting Loan Against Property, you should know the asset value too and the same is applicable for the Business Loan.
The EMI can either be reduced or increased by the time we take to pay off the loan. If the time has to be elongated, then the interest rates get increased, and it will lend you some extra time. If the period is short, then the interest rates will decrease eventually.
The EMI has a period of 12 to 60 months. This time can be extended if we have any problem in repaying the money. But the amount will increase due to the increased interest rates. The EMI must not be overbounded for more than three months. For the first two months, the bank will try to collect debts by sending the notice, and then it will directly affect your credit score. It is resulting in reduced support for loans from any bank or financial services.
Nowadays, EMI can be transferred from one bank to another. If a person has a short period to pay the EMI, then he can transfer it to another lender. The new lender will pay off his debt and makes the borrower pay him regularly. But the borrower will have some more time to pay the debts. It will help him to be stress-free. But there will be an extra tax applied for this debt transfer.
So select the EMI based on your convenience and pay them off regularly to have a clean profile so that you won’t get any restrictions in the future.
The only thing we have to take care of is the documents needed for a personal loan, but it will be simple in all banks. It consists of income proof, address proof, and identity proof. If you are planning to get a personal loan, then keep these points in your mind. Make sure you have all the documents before you proceed.