Planning to take a home loan? Step-up is a good option in difficult times

Real estate prices are reasonable. Loan rates are also affordable - as low as 7.9 per cent for certain banks

Bindisha Sarang
Last Updated at March 29, 2020 18:40 IST

Home Loan. Photo: Shutterstock

No one is going home shopping during a lockdown. But once things start returning to normal, home shopping would not be a bad idea.
Real estate prices are reasonable. Loan rates are also affordable – as low as 7.9 per cent for certain banks.
The maximum tenure offered by most lenders is 30 years, which makes the EMI much more affordable.
If you get a step-up loan repayment option, your EMIs will be smaller in the initial years of the tenure.
They will increase with time, but by then the economy would have recovered from the impact of the Coronavirus epidemic.
Since a step-up loan takes into account the future earnings potential of the prospective borrower as well, the loan eligibility also increases.

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