Repay Home Loan Until You Are 75 Years Old!

A home loan is a long commitment. For some, it is a relationship that lasts more than their marriage too. 

Funny as it sounds; home loans in India are a serious affair that requires a lot of effort from you in order to ensure that you stay happy. These loans can be paid in different tenure options and until you reach the age of retirement.

These numbers are decided by the Bank/NBFC that deals with providing the best home loans to you. Generally in banking terms, minimum loan tenures range from 15 years and the maximum tenure would be of 30 years. On average, the retirement age is 60.

What is Home Loan Tenure?

Loan tenure is the period you get in order to repay the home loan amount back to the Bank/NBFC. This tenure is decided firsthand before your loan application is approved.

Which is better? Long home loan tenure or short tenure?

Loan tenure depends on a variety of factors of which the topmost is your loan eligibility. What tenure suits you best also depends upon your income level and how much money you can dedicate to repaying the loan amount. You can use a home loan calculator and check if the reduction in tenure is required or no.

Can we change home loan tenure?

Yes. If there are situations where you are not able to repay back the loan EMI on time due to budget constraints, then you can discuss with the bank regarding the possibility of increasing your home loan tenure. If the Bank/NBFC approves, then your loan tenure can be increased, and accordingly, your loan EMI amount will reduce.

How Can I Repay Home Loans until I’m 75 years old?

Usually, Banks allow maximum home loan tenure of 30 years to customers. In rare cases like the Oriental Bank of Commerce, you can also get loan tenure of 40 years. Now, LIC Housing Finance (LICHF) has partnered with India Mortgage Guarantee Corporation (IMCG) and they offer a special loan scheme that allows the customer to repay the home loan until they reach the age of 75.

Here’s an example to help you understand how Home loan tenures work;

Mr. ABC who is 30 years old gets a home loan worth 40 lakhs at 8.5% interest for the tenure of 15 years. Here we will show how much monthly EMI he will pay if the loan tenure kept increasing;

Monthly EMI:

15 years = 39390

20 years = 34713

25 years = 32209

30 years = 30757

35 years = 29874

40 years = 29324

45 years = 28974

So you can see that earlier Mr.ABC would only get maximum loan tenure of 30 years which would help him repay the monthly EMI of 30,757 rupees by the time he reaches the retirement age of 60.

Now with this scheme, he can repay the monthly EMI of 28974 rupees by the time he reaches the age of 75. That’s almost saving 2000 rupees per month.

Overall, a scheme as such does help you, in the long run, to manage your finances and repay a home loan with ease. Be a reliable customer, pay your bills on time, maintain a good credit score and all this will help you get your dream of owning a home turn into reality.

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What is Pradhan Mantri Jan Arogya Abhiyaan?

Yesterday India celebrated its 72nd Independence day. The Prime Minister, Narendra Modi unfurled the national flag at Red Fort and addressed the country for the fifth and last time this tenure. He mentioned about how his initiatives on Clean India, Pradhan Mantri Fasal Bima Yojna, Mudra Loans and GST have been successful in moving India forward. Keeping this in mind, his government now has shifted its focus on “Health For All”.  

The Pradhan Mantri Jan Arogya Abhiyan (Ayushman Bharat) is a new large scale health insurance initiative which aims to benefit many rural citizens of India. This scheme will be launched on September 25th, 2018 which also happens to be the birth anniversary of Pandit Deendayal Upadhyay.  With this scheme, coverage of 5 lakhs will be provided per family annually which benefits many of the poor Indians in the rural and semi urban areas. According to the latest Socio-economic caste census data, there are around 50 crore people who will benefit from this scheme.

 Why is this scheme needed?

Our PM rightly mentions that in poor families, when someone falls sick, it hurts the balance of the entire family’s income and savings. Hence this scheme will aim on such families and reduce their burden as much as possible.

What is covered?

According to a study by the Public Health Foundation of India in May 2018, Indians pay more than three fourths of the total healthcare costs all by themselves.  Due to this, many are pushed below the poverty line. Hence more than 1000+ medical and surgical packages which fall under 25 specialties are covered.

These specialties include chemotherapy, neurosurgery, cardiology and many more. Out of the few benefits, fees such as consultation fees, medicines, diagnostic tests, food for patients, basic hospitalization expenses will be covered. This scheme will be implemented by a joint effort of central, state and district level.   

Who has signed up for this?

For the first stage, Manipur, Himachal Pradesh, Nagaland, Andhra Pradesh, Haryana, Daman and Diu, West Bengal, Chattisgarh, Uttarakhand and Chandigarh. This program will be tested on these states and union territories. Slowly, the whole of India shall be covered. If a state wishes to opt out of this, they can do so. Currently only Odisha has opted out of this scheme.

Overall, this scheme which is also referred to as “Modicare” does look promising and if executed well can shape healthcare in India. With access to such quality healthcare, the country will now be able to work on its way of progress.


Wonder Home Finance – The Solution to efficient Home Loans in India

The word “Loan” plays a huge part in more than 60% of a middle-class Indian’s life. A home finance loan is one such product.

Whenever you want to opt for a home loan to purchase a new home, renovate the old home, or invest in an under-construction property, the main concern we have is toward the correct lender.

With the best deals in the “Home Finance in India” market being offered by every lender, it is a tough choice for the average customer to make. Hence we must place more emphasis on finding that correct lender which can solve all of your problems.

Wonder Home Finance event unveiling

Hence keeping the needs of the customer as the highest preference, RK Group has ventured into the Home Finance in India business by launching “Wonder Home Finance Ltd.” under a license received from the National Housing Bank.

With this, Wonder Home Finance can now help customers in purchasing their dream homes. They will commence their business by setting up 29 new branches across the state of Rajasthan. Post that, they will begin operations in Gujarat, Maharashtra and Madhya Pradesh till the end of this financial year 2018-19.

The main panel discussion during the Wonder Home Finance event

RK group has been in the industry for a very long time and hence they will use their name and history to their advantage to gain customers. Their work is in line with the Pradhan MantriAwasYojana where they aim to provide finance to lower and middle-class segments of the society in semi-urban and rural areas.

The launch was held in Jaipur in a press conference with the media where Shri. Ashok Patni, Chairman of the RK Groupmentioned about their plans to deliver the best services to their customers and give them a good experience.

This home finance group also supports the vision of the government of “Housing for all by 2022”.

The main speakers at the Wonder Home Finance event

Sanjay Singh Rajawat the CEO and Director of WHFL mentioned their aim of maintaining a customer-friendly process. They aim to expand their services in the neighboring states near Rajasthan and soon all over India. They believe that the process of getting your dream home is tough and hence they would be with the customers on each step of the process to make it simple for them.

Raunak Singh Mohnot, CFO, Head – Strategy & Marketing of WHFL in his speech mentioned about the confidence they have with their brand and how soon their customer-centric approach would take them way ahead in this business.

Overall, purchasing a home is not an easy task. The same can also be said about choosing your lender. WHFL can solve both these problems as they not only have a user-friendly process but also help you every step of the process in order to ensure that you get your dream home quickly.

The whole WHF team at the Wonder Home Finance event

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