People that are planning to borrow a home loan might be in dilemma to go pr not to go for the loans due to the continuous hike in the lending rates that has made home loans far more expensive then they used to cost a couple of years earlier.
The lending rates have gone up by 200 basis points in the last two years and the rates and the rates are further expected to up in the future. It can be very difficult for a borrower to decide make a decision of borrowing loan at this instant of time.
A person can not do much about the soaring rate but he must do whatever he can do to counter balance the effect of the inflated loan rates. It is very necessary for a borrower to evaluate himself the time he plans of borrowing home loan.
A loan is meant to get benefits out of it in the broader frame of time but if the loan has potential to cause loss or if the loan leaves a person bankrupt then there is no use of borrowing, hence he must avoid, borrowing the loan.
The best thing at this point of time is to wait, and if a person really needs to borrow a loan then he must ensure that he is financially sound enough to handle the loan. Hence financial planning holds prime importance here.
Even for the people that have put their borrowing plans on hold must start planning; they must try to repay their current borrowings as soon as possible and keeping their future requirements in mind they must start saving the finds that cab later be utilized while borrowing other loan as there is certainty that the loan rate will fall and even if they fall any one is not really in a position to predict the time.
To make the most of the time that he gained by delaying his borrowing schedule he can make use of the fixed deposits and the recurring deposit schemes, that can help him to earn some interest on the finds that his saving that can come quite handy at the time of borrowing even if the loan rates do not fall even then.
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