Applying for the loan without considering, how to return the amount is like pushing oneself towards the road of a defaulter. Here are a few tips to avoid being in such situations:
Know your Investments
Before taking a home loan, the first step that you should take is to recognize and understand the source for your investment and draft a worksheet containing all income and calculate the turnover. Once you have numbers in hand, you can then decide on the amount/extent to which you can afford for a loan. The best way to do this is by using/taking help/support of an online EMI calculator. The online EMI calculator can help you in knowing the amount that needs to be paid, without failing.
Look for options available
Another common mistake is not looking for options available. Look for a low-interest rate EMI loan and settle for it. You should compare the rates by the use of a third party app or by visiting various lenders website.
Make Prepayments
You can diminish the loan burden by doing some prepayments. Paying the EMI's with your yearly or monthly bonus is a fabulous step to avoid defaulting.
Change your Lender
Switching your lender for availing for the low-interest rates is a smart move. This way you get the advantage of lowering the capital that needs to be paid, hence reducing the risk factor.
Availing for a loan and not repaying the amount on time, is something which anyone would like to avoid, at any cost. Be smart by picking the right lender!
Reference Read: Tips to Avoid Defaulting on Your Home Loan EMI
