You can repay your home loan until you are 75 years old in India

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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Home loan in India

Getting a Home Loan with Bad credit score?

Today, in order to avail of any loan whether it is secured or unsecured, you need a good credit score. Maintaining a good credit history is important for everyone. This helps in getting a good interest rate and possible waivers on many fees and penalties from the lender. This also applies in the case of a home loan.

Taking a home loan in India is a long term relationship for the borrower with the lender. If the person has a bad credit score, he/she might either not get a loan or might have to accept the loan at a higher rate of interest. This means there is a possibility of rejection to get a loan or paying higher EMI’s. In order to ensure this doesn’t happen, allow me to explain using 4 simple steps on how you can come out of this situation and get your home loan approved quickly;

Check your credit score – You need to understand your current credit score. Hence apply for a credit report and know your score. This helps you to understand your current condition and help you in planning to improve your score for future benefits.

This will be the first step in getting the best deal on Home loans.

Improve your credit score – After you make a plan, be disciplined and follow it. This will ensure that the credit score is improving within the planned tenure. You can opt for a credit card and a personal loan for help. Pay the bills and EMI’s on time without any default. Over a period of 6-12 months, this will help you increase your credit score.

Check for different lenders – There are many lenders in the market apart from the Banks like NBFC’s that provide you loans with average or bad credit scores. You need to understand that the rate of interest would be higher than other lenders but there is a possibility of getting a loan.

Correct documentation – Once you finalize on a lender and agree with all the terms and conditions mentioned in the loan application, keep all the necessary documents like income, personal details, property documents, etc ready to ensure the loan process goes through in a smooth way.

The importance of maintaining a good financial profile is needed for every person.

This can help you save money and get a loan approved quickly at a lower rate. Please ensure you read the terms and conditions in the loan agreement. Only after understanding them, sign it.


Can I get 100% home loan?

No, you cannot get a 100% home loan since the RBI passed a mandate. But you can get anywhere between 80-90% of the property’s value as the home loan amount. So all you need to do is save up to 20% of the property’s value!

Can I get a mortgage with a poor credit score?

No. If your credit score is below 650 it is difficult to get your loan application approved. If your CIBIL score is low then all you have to do is pay your dues on time and be a responsible citizen. Over time, your credit score will increase.

What kind of credit score do you need to buy a house?

In a country like India, any score above 750 is considered to be good to buy a house. If it’s low, then you might get the home loan at the highest interest rates. A higher credit score (above 800) will give you the lowest interest rates!

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Closing credit card and bank account isn't good

Why closing your old Bank account/Credit card is bad!

Financial knowledge is the need of the hour for all. It’s our duty to check current events in the market. As compared to the past decade, we’ve been pumping more money in the mutual fund market.

People now understand the importance of SIP (Systematic Investment Plan) and its benefits after 3-5 years.

Many want to invest in the stock market for a longer period and many want to invest in real estate. We now understand the importance of life and medical insurance.

Hence the average person today is informed, actively looks for more investment options and ways to strengthen their financial profile. We might consider closing our old accounts and credit cards that are not being used today.

Let me tell you why closing Bank account/credit card is a bad choice.

Your credit score is calculated for a long time and takes time to improve or fall. This credit score includes the history of all the loans you took using old accounts and credit cards. When you plan to close your old account or credit card, you need to understand that your credit score will reduce. Yes, on account closure, your credit history is wiped out. Hence if you had a good score, that will fall and you will have to begin building your score from scratch.

The same applies to your old credit card. If you close your old credit card because the new one has better benefits etc then the credit history attached to that card will be wiped out. Hence it’s very important to use and maintain your old accounts in case you plan to take a new loan/debt. In conclusion, I’d like to tell you that it’s best to think wisely, pay your bills due, pay loan EMI’s without defaulting and that will help you maintain a strong financial profile.

So we hope that after reading all these points, you won’t be closing Bank account/credit card anytime soon.

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