Once agrrement is signed about repayment of loan any variation in imposing interst come to force to should not distrubed the exsiting people who availed the loan before enforcing the new rate. The new EMI imposed for the applicants who availed loan after enforcing the new rates only so that they can make their budget easier to face the repaying burdens, Or extent the period of repayment duration.
every one should becAUSE OF RAJEEV FORESISHT AND MANMOHAN SINGH IMPLEMENTATION OF REFORMS BOUGTH U THESE RICHES AND HOMES OTHER U PEOPLE LIVE IN THE SAME LOOKING FOR rs5000 JOB OR FOR A GOVT JOB. U DISCUSSING ALL THESE BECAUSE OF CONGRESS PEOPLE ONLY.
The Best Solution to save oneself for rising the Intrest rate is to pre pay the loan as early as possible, the interest levied is compund intrest which for longer duration is very high in absolute value, so pay early save the interest and save emi. Take care of Taxation aspect otherwise you may loose as well by prepaying the loan
As far as my knowledge is concerned, the developments which are happening in india now are only because of BJP government. This congress government enjoying the fruits from BJP governments seeds. Regarding inflation, Both of them ( PM & FM ) are never prepared a budget for middle class people. Laloo is also not performing well. He increased the hidden charges like parcel rates, Cancellation charges, food cost, and etc.. The efficiency rate of accident free trips and life if the trains are reducing.
RE:Re:Re:Vote BJP
by Abhishek Rajput on May 04, 2007 09:15 PM Permalink
I don't feel any sane persone in India would have voted for Congress and I hope God will provide sanity to more Indians and BJP will be back in Power.
RE:Re:Re:Vote BJP
by Vikas Vadgama on May 03, 2007 03:25 PM Permalink
I agree Sudhan. Congress is just enjoying the fruits of the seed sown by BJP. But this Congress govt has made the common man's life more miserable. First place, I didn't understand why people voted Congress in 2004 elections when BJP was doing so good. If it was a mistake, let's rectify and re-elect BJP.
RE:Re:Re:Vote BJP
by ravi on May 05, 2007 07:35 PM Permalink
I don't like BJP either. But one thing for sure: BJP will never bring this OBC reservation and caste politicd
CONGRESS YOU HAVE TO PAY YOU PLAYED WITH THE FUTURE OF THE INDIAN YOUTH YOU ARE PLAYING WITH INDIAN MIDLE CLASS I DIDN'T BOTHER TO CAST MY VOTE LAST TIME THIS TIME I WILL AND MAKE SURE CONGRESS LOSES I DON'T CARE WHO IS THE WINNER CONGRESS HAS TO PAY
I have read most of the comments here. Would like to add my own experience. I had taken my first home loan in the year 1999 for a tenure of 15 years at 14.5% interest!!! Over a period the rates started moving souhwards and I eventually paid up the loan in half of the time. Now I have taken one more loan. The rates have moved up now. However it will definitely cool down in the next year or so. Some of the readers have advised to liquidate other investments and repay the loan. Based on my experience this is not a wise option. If one selects long term equity linked products, it is possible to earn almost the same or higher rates than what you pay on your home loan. If you add up the tax benefits you will definitely gain. Therefore whatever may be the trend in interest rates a home loan is always a good product. It is very important to assess your long term capacity to pay the instalments and restrict your loan amount. Most of the persons who are facing the problems probably had gone for costly houses in upmarket areas. Sometimes it would be much better to have one bedroom less than having all the woes of higher EMIs!
I borrowed Rs. 10,000,00/for the purchase of a flat at an interest rate of 7.5% annum. Now it is almost 10.5% annum.
As the EMI increased at this exorbitant mode, I started redusing the expenses like mobile phone, electricity, travel, vocation etc. Apart from the same I even tried to alternate medicines to avoid the heavily charging alopathic treatment. Also re-arranged the house-hold budget. But paying some part amounts are not feasible as we are not able to save that nuch.
Increase in interest rates is a big inconvenience for any kind of loan borrowers. The only solution would be, making part payments over a period of time and reduce the loan amount which inturn reduces the EMI.
I think it is all related to politics.It is nothing to do with RBI.Wait and you will see that all Interest rates will come down in next 1-1.5 yrs. Because elections will be in the corner and government will low down interest rates for public votes.So don't worry too much and wait for some time
Hi , Its very true dayb by day rates of interest are increasing.So you should be very carefull when take home loans or very big amounts of money from the bank.U should be carefull/
In my openion only fools will take loan and construct house. if you really look at the cost of the house and the interest it will be more than double the ordinary cost. because you are getting money with out hard work you dont feel the pinch and you help the cheaters to loot the poor and the middle class people.
RE:EMI and interest hike by banks.
by on May 02, 2007 01:49 PM Permalink
While calculating interest for home loan, inflation which is a major factor in affecting money value is taken for calculation. You should consider what will be the value of money after 15 or 20 yrs.
RE:EMI and interest hike by banks.
by sivakumar m on May 06, 2007 06:15 PM Permalink
george , I suggest you not to forget your limits, I'm wondering whether you have any awareness on finance sector. Consider these factors, you will know how best is the Home Loan 1) Money Inflation rate 2) Value of the asset after 15- 20 years 3) Tax benefit 4) At this rising world, check your comfortness in living in your own house rather than a Rental one.
