A maximum of 5 providers will compete to give you the best rates (Dec 2016)

Purpose

Loan Amount

Occupation

Property Finalized
Yes
No

Property Address

Possession In

City of Property

Property Value

Monthly Income

Co-applicant (if any)

Co-applicants Monthly Income

Preferred Banks

Any 5

INDIABULLS

ICICI BANK

HDFC

AXIS BANK

KOTAK BANK

DHFL

STAN CHART

HSBC

CITIBANK

RELIANCE

IDBI BANK

Name (as per PAN Card)

Email

Mobile

Residential Status

Date Of Birth:

City

Locality/Area

Locality/Area

I authorize the website and its partner providers like HDFC Ltd, ICICI Bank, DHFL and other banks/NBFCs to call or SMS me in connection with my application & agree to the Privacy Policy and Terms of use

A prepayment can save you from rising EMI burden

Pre-payment is a very good option to save yourself from the EMI burden

Apnaloan.com Research Bureau

10 Aug 2007

Mumbai: The Indian middle class is slowly realising the
implications of opting for floating interest rates on their home loans.

Persistent hikes in interest rates in the last one year is
threatening to upset monthly budgets of many middle class families.

Those in their late forties are getting calls from their
housing finance company, asking them to pay a higher equated monthly
instalment (EMI).

Their younger counterparts, on the other hand, are learning
that the tenure of their loans has gone up by a few years.

"People who have opted for a floating rate are really
worried. I have clients who are forced to cut down their expenses and
investments because their EMIs have gone up considerably in the last one
year," says a financial advisor. "I have asked some of them to liquidate their
fixed deposit and make a prepayment."

Harsh Roongta, CEO of apnapaisa.com/loan, too advises a prepayment
to keep the EMI and tenure unchanged. "For every 1% hike in interest rate,
roughly you have to pay around Rs 7,000 rupees for a Rs 1 lakh loan with a
20-year tenure," he says.

For instance, if you have a Rs 10 lakh loan with a tenure of
20 years, you can make a one-time prepayment of around Rs 70,000 to ensure
that your original EMI remains constant.

Also, if you have age on your side, you can ask the bank to
increase the term of your loan. "If the customer doesn't have the means to pay
a higher EMI, we increase the tenure of the loan. It becomes a problem only if
the tenure will extend to a period after retirement. In such cases, we have no
choice but to increase the EMI," says an official with a housing finance
company.

As for prospective home buyers, you should consider
postponing the purchase for the next six months. According to financial
experts, interest rates are likely to go up further, dragging property prices
down.

"The RBI (Reserve Bank of India) doesn't seem like done with
the policy rate hike. It may hold rates only after it achieves its inflation
target. If rates goes up further, it will definitely slow down demand," says a
senior banker.

"If one can afford to wait, it is better to postpone the
purchase by six months. Especially, those who are buying the property for
investment. However, if you are buying a place to stay, you can still go
ahead. Over a long period, the price would even out," says Roongta.

Financial advisors also have another solution for those with
a tight budget. "If you have an insurance policy, national savings
certificates, shares or mutual fund units, you can pledge them to get an
overdraft facility. You can use the money to make a prepayment or pay EMI,"
says Roongta.

Another way out would be to borrow more. "It is not a
preferred route. But if you don't have any other way out, you can ask the bank
to offer you a top-up loan to make a prepayment," says a financial
advisor