Home loans help many fulfil their dream of owning a dream house. One can choose from many options available to pay back the home loan per their convenience:
1.EMI Holidays: Per this repayment plan, lenders allow you to delay your home loan EMIs by a few months, typically around 6 months. The scheme is popular for under construction project. While the interest starts as soon as you get the loan amount disbursed, the lender offer home loan moratorium period to help home buyers plan better.
2. Construction-linked Plan: Many homes built by real estate companies take money from the home buyers per a pre-defined construction plan. Payments under this plan are linked to the progress of construction. The time gap between two EMIs can give home buyers time to plan for the payments.
3.Repayment with Fixed EMIs: One of the most popular payback scheme. In the option, the home loans come with fixed EMIs that remain constant throughout the tenor. Any changes in the interest are adjusted by moving the tenor, keeping per month EMI constant. One should be watchful of the total interest outflow in such cases.
4.Repayment with Increasing EMIs: Many people over the entire tenor of home loan prefer to increase the EMIs and close the loan faster than the original tenor. Part of EMI's go to towards principal repayment and if the home buyers income levels permit, many chose to increase EMIs with time. The scheme is offered with the expected growth of income of home buyer over time.