Home loan and tips to choose its repayment

If you want to take home loan, you should have some documents to apply for the loan like tax returns, pay stubs or other proofs of income, bank statement and other assets if you have, credit and renting history, gift letters and photo I.D etc. Money lending is giving loans to the individual or other organization.

Home loans are available for working professionals and person’s age should be between 21 to 45 years.Money lending Singapore can be easy as there are many trustworthy, reliable, and licensed money lenders.

Loan repayment options to choose:

  • Home loan with delayed start of EMI payments: Some banks give loans with an option to go for moratorium period that means you will not have to make the repayment during that period of the loan. It can be anytime between 36 to 60 months.  In this period, you will have to pay only pre EMI interest. In this type of loan, you may get 20% more amount as compared to normal home loan.
  • By linking idle saving in bank account: In this your home loan account will be linked to your current account which is opened along with it. You can deposit or withdraw funds from the current account whenever required. You can calculate the interest rate of the home loan by subtracting balance of loan from balance in current account.
  • With increasing EMIs: In this, you can get higher amount and in your initial year you can pay lower EMI. The actual EMI begins from the first day as there is no moratorium period. It reduces the burden as loan finishes earlier.
  • With decreasing EMIs: In this, EMI is high during initial period and decreases afterwards. So, it’s better to have a repayment plan so that you can clear the loan soon once EMI starts decreasing.
  • Lump-sum payment in under construction property: You can only pay the interest amount till final expenditure and then you can pay the EMI afterwards. But if you want to start the principle repayment early then the amount will be adjusted first in the interest of the loan and then remaining will go for principal repayment.
  • With waiver of EMI: In this, you can pay 6 months EMI on the completion of 10 years and another 6 months of EMI after 15 years from first expenditure. Loan tenure should be of at least 20 years and minimum amount should be 30lakhs. The interest rate is same as that of normal loan.