IHF Increasing the EMI is better than Extending the Loan Tenor
No Comments Sub Category:Community,Uncategorized Posted On: Sep 17, 2011
Sachin Chaudhary the business head of India bulls Housing Finance has advised the loan borrowers not to go for fixed-rate loans or to extend loan tenors and he also reported saying that a high rate scenarios are increasing in the payment of EMI. The fixed rate loans are expected to soften. The India bulls Housing Finance head also explained saying that in the fixed tenor the effective rate is comparatively lower and the deductions on home loans result in tax benefits. The EMI amount on every Rs1 lakh increases rate of interest after six successive hikes by 9%.
However the EMI is fixed and the tenor keeps increasing and the interest rate is increased by 22%. Indian Overseas Bank chairman and managing director M Narendra reported saying that the banks are in a notion to wait till the month-end before the interest rate hike. Most of the banks offer ‘teaser loans’, that of fixed rate for the first few years compared to floating rate loans. The experts think that the interest rate hikes is not advisable. The fixed-floating hybrid loans favor the lender not the buyer, reported one of the an analyst.
Source: Personal Finance Magazine
Tags:
EMI, EMI payment, Fixed-floating hybrid loans, Fixed-rate loans, Indiabulls Housing Finance, Loan tenors
