In the past 10 years, whenever you get a call in your mobile, 90% of that is from banks or financial institutions to give loans to us or for credit cards. Up to some extent if it is necessary, then there is no harm in getting loans from banks. But the financial crises which started in early 2007 in USA is due to this loans and mortgage only. It spread to other countries also. But we are one of those countries which were not affected by this financial crisis. The reason for this our careful approach to finances and proper repayment of our loans.
But repayment of loan is not easy in any time. But if we do the calculations and mathematics before applying the loan, repayment is easy always. Before applying for loan keep in mind the following points.
• Home loan – your EMI should not be more than 40% of your income.
• Vehicle loan – your EMI should not be more than 15% of your income.
• Personal loan – your EMI should not be more than 10% of your income.
Our elders taught us a good way of living. Don’t go beyond your limits. In Hindi as the saying goes “jitni chadar ho utna hi pair phailana chahiye” it is same as ‘cut your dress according to your cloth’. Don’t borrow more than your repayment capacity. By that you will repay the loan easily.
Repayment of loan is always not easy. You have to calculate it before applying the loan. Plan your sudden expenses also when calculating EMI amount.
If you keep the loan tenure period short, you will be relieved from your loan quickly.
Don’t borrow for others or for investment.
Search for better options with low interest rate and other benefits while thinking about loan.
Take some time and read the application form of loan and understand it correctly.
Discuss with friends or family who have already applied for loan.
Now as the interest rates for our deposits are very low, consequently borrowing rate is also low. So you can get loans easily at very low interest rate and can repay it easily. Provided you are not impressed by the way of repayment chosen by Modi or Malya !