NEWS & ADVICE : HOME LOANS
Choose right repayment plan for home loans
By Joseph Samson
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While choosing a home, people keep in consideration many important factors like property's proximity to workplace, offered amenities, surrounding infrastructure, build up area, linked benefits etc. But often, one crucial factor goes amiss i.e. choosing right payment plan.

As we know, every individual buying a home has different financial backgrounds and different financial requirements. So, housing finance companies and banks offer various repayment options that suits buyer's need.

Usually, the repayment options are tailored according to a borrower's credit worthiness. They are designed to simultaneously benefit both the borrower and the lender. Lenders consider factors like monthly income, stability of employment, age of the customer and any other debts that are being serviced by him while deciding on which repayment plan to offer to a customer.

On the other hand, while choosing a repayment option, a borrower should keep in mind that the chosen scheme is affordable, increases his repayment capacity and gives him tax benefits. The main aim behind choosing a suitable repayment option is to make repayment of home loans easier. Before selecting a repayment scheme borrower should take some time to understand its features as it is a long term financial decision.

There are some innovative payment models, namely Down-Payment Plan (DPP), Construction-Linked Plan (CLP), Flexi Payment Plan (FLP) and Term-Linked Payment Plan (TLPP). Let us discuss these to find out, which one suits best to the needs and requirements of the borrowers:

Down Payment Plan (DPP)

A traditional, Down Payment Plan requires buyers to pay 10-15% of the purchase price in the form of advance booking amount (also commonly termed as `earnest money'). Thereafter, up to 80-90% of the balance amount is paid within the 45-60 days of booking. The remaining 5-10% balance amount, if any, needs to be paid at the time of possession, along with other charges. A hefty discount of 10-15% on the purchase price, given by builders, is a major pulling factor for buyers, which attracts them to go for DPP. The upfront payment taken by builders is generally used for construction purposes. The discount may also get higher depending on the bargaining power of the buyers. In other words, bargain as hard as one can to get the best deal out. Thus, the option happens to be the cheapest of all plans if one is planning to buy an already constructed property. In case of home loans, EMIs start once the bank makes the upfront payment.

However, the risk factor involved in DPP increases with under-construction property. In case of any delay in completion and delivery of a property, which sadly is a reality, the buyers find themselves at the mercy of builders. In such a case, they are not even able to move out of the project due to contractual clauses.

To reduce the risk factor involved in it, an option of ‘EMI sharing' (also called Deferred Payment Scheme) has been introduced. This concept is popularized by marketing people as ‘No EMI Till Possession', which works as an excellent sales pitch. The ‘Zero EMI' or ‘No EMI Till Possession' is where buyers are not required to pay monthly installment once the property loan has been sanctioned. Instead, the property builder will pay interest EMIs by issuing post-dated cheques for pre-decided tenure, ranging from 12 to 30 months. This method is lucrative as here buyers not only get a discount on the total purchase price of the house but also get time to save cash for a significant period. This is important to note here that the EMIs involved in EMI sharing method constitutes just the interest component, whereas the principal component still has to be paid by the buyers.


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(Comments Posted : 9) Post Your Comments
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Interested applicants should Contact us via email: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Interested applicants should Contact us via email: PergoCF@gmail.com
Kindly write us back with the loan information;
- Complete Name:
- Loan amount needed:
- Loan Duration:
- Purpose of loan:
- City / Country:
- Telephone:
- How Did You Hear About Us:

If you are interested to get a loan then kindly write us with the loan requirement. Interested applicants should Contact us via email: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Interested applicants should Contact us via email: PergoCF@gmail.com
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PergoCF@gmail.com
PergoCF@qualityservice.com
PergoCF@cheerful.com

We look forward to hear from you ASAP

Interested applicants should Contact us via email: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Interested applicants should Contact us via email: PergoCF@gmail.com
Mrs. Ceren (Posted: Apr 24, 2017)
2. Do You Need A Business Loan,Or A Personal Loan,At 1.0% If Yes? Name,Amount,Country,Loan Durations,Phone Mobile:Please, Interested applicants should Contact us via email: PergoCF@gmail.com , ( PergoCF@qualityservice.com ) , PergoCF@cheerful.com
Do You Need A Personal Loan Or Business Loans? If Yes Email: Your Name:Amount needed:Duration:Country:Mobile:Contact Us Via Email: PergoCF@qualityservice.com

Do you need Financial Assistance?
Do you seek funds to pay off credits and debts?
We give out loan with an Interest rate of 1.00%

Please, contact us for more information: PergoCF@gmail.com , ( PergoCF@qualityservice.com ) , PergoCF@cheerful.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Kindly write us back with the loan information;
- Complete Name:
- Loan amount needed:
- Loan Duration:
- Purpose of loan:
- City / Country:
- Telephone:
- How Did You Hear About Us:

Please, contact us for more information: PergoCF@qualityservice.com
Interested applicants should Contact us via email: PergoCF@cheerful.com
Yours Sincerely,
Mrs. Ceren Kelly
PergoCF@qualityservice.com
PergoCF@gmail.com
PergoCF@cheerful.com
We look forward to hear from you ASAP.
PergoCF@gmail.com (Posted: Apr 6, 2017)
3. I live in usa and life is worth living comfortably for me and my family now and really have never seen goodness shown to me this much in my life as I am a mother who struggles with three children and I have been going through a problem as seriously as my husband found a terrible accident last two weeks, and the doctors states that he needs to undergo a delicate surgery for him to be able to walk again and I could not pay the bills, then your surgery went to the bank to borrow and reject me saying that I have no credit card, from there i run to my father and he was not able to help, then when I was browsing through yahoo answers and i came across a loan lender MR TONY HARTON, offering loans at affordable interest rate and i have been hearing about so many scams on the internet but at this my desperate situation, I had no choice but to give it an attempt and surprisingly it was all like a dream, I got a loan of $ 50,000 and I paid for my husband surgery and thank God today is good and you can walk and is working and the burden is no longer so much on me more and we can feed well and my family is now happy today and i said to myself that I will mourn aloud to the world of the wonders of God to me through this lender GOD fearing MR TONY HARTON and I would advise anyone in need of loan to contact this God fearing man to financialhome@outlook.com contact his email now for any financial problem
mcao laro (Posted: Sep 16, 2016)
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