Every person dreams of having his own house one day. For this, he works hard all his life. However, when it comes to buying a house, 80-90 percent of people need a home loan. Not only this, they also invest their savings in it. Most people often make a mistake after taking a home loan, due to which their loan which could have been repaid in 20 years, takes them 25-30 years and sometimes even more to repay.

How does the tenure of a home loan increase?
When there is a change in interest rates, due to this the tenure of repaying the home loan increases. Most people do not pay attention to this in the beginning. Later when they come to know that the tenure of their loan has become very long, they complain about it to the bank.

Why is the tenure of home loans increased?
The EMI of home loans is not changed by the banks. In such a situation, they increase the duration of your home loan, so that money can be taken from you according to the increased interest rate. Due to this, many times a home loan that ends in 20 years continues for 30 years.

Let us understand with an example
Suppose you took a loan of Rs 30 lakh at the rate of 8 percent for 20 years. In this way, your EMI will be around Rs 25,093. Let us assume that after 5 years of taking a home loan, the rate of your home loan becomes 11 percent. At this time, the outstanding principal amount of your home loan will be around Rs 26 lakh, because in the initial years, the interest part is more in the EMI, while the principal amount part is less.

This way the duration will increase
In the situation after 5 years, you will feel that now 15 years of EMI are left, but this does not happen. If your EMI is kept the same as before, i.e. around Rs 25,093, then the remaining period of your loan will not be 15 years, but 28 years. Here if your EMI is considered based on 15 years, then it will increase to around Rs 29,500. In this way, the loan which you were going to pay in 20 years, will take you around 33 years to pay it.

How to protect yourself from such situations?
If you do not want the tenure of your home loan to increase, then whenever the interest rates increase, you will have to talk to the bank and get your home loan restructured. That is, you will have to tell the bank not to increase the tenure, but to increase the EMI according to the new interest rate. Most of the customers make this mistake and do not get the loan restructured from the bank.

PC Social media