Monday, July 7, 2008

Managing repayment of home loans

In this article Shubha Ganesh discusses options available for the existing home loan borrowers to manage the additional cost of borrowings; means increased EMI because of the higher interest rates.

What should the floating rate borrowers do now? What are their options?

1) Pay higher EMI (equated monthly installments )

2) Increase the tenure of the loan

3) Prepay part of the loan to retain the original EMI.

4) Options for the new home loan borrowers.:
Shubha Ganesh - The Economic Times


  1. They could be dismissed as a nondescript group of people chatting on the lawns of an exclusive club or strolling down Marine Drive. Their clothes are quiet, their gait without swagger. Indeed, it's hard to believe that these are the very men who have a vice-like grip over some of the biggest builders in the country. They are India's wealthiest moneylenders who, even as the banks tighten their belts, loosen their own purse-strings. With financial institutions and banks increasingly restricting loans to developers, these moneylenders primarily belonging to the Sindhi, Marwari and Kutchi communities have stepped in to play their part. These moneylenders are mainly active in three cities Mumbai, Bangalore and Chennai. The loans are given to builders for short periods, from three to six months. The amounts could range from a couple of crores to as much as Rs 100 crore. If the amount is substantial, about 10 to 15 of those in the group are believed to come together to fund the project. But many diamond merchants have burned their fingers because of the crash in the stock market. Then there are the politicians. It's widely believed that many builders are being backed by politicians, including ministers, from different political parties. One construction group has seen its fortunes steadily rise over the last five years because of its political connections.For more view-

  2. You’re really adding a lot of value with these posts. Compiling all of this home loan information makes for a really useful reference as well. I’ve learned a lot from these and I appreciate it.

    Home Loans

  3. Though paying a higher EMI on home loaning is quite risky, I still consider this as one of the best option to use basing on what I have noticed it best. Their might be some other way I guess but for now I still stick on my choice first.