WHY EMI FOR LOANS?

Have you opted for a home loan and  EMI scheme recently?

Buying a home is lifetime event for most of people, and bank loan is the only possible way for the required finance. Most of the potential buyers not being able to gather the amount required in cash for the property purchase. And, in a situation like this, we would but obviously opt for a bank finance a.k.a loan. Loans have been playing a significant role in each of our lives, and a great help achieving our material goals without a single doubt. Buying a new car, expenditure on education of our children, going for a leisure holiday to foreign destinations, easy loan options have made them easier for us in the present day-and-age without much difficulties. In fact, getting a financial support is like a phone call away!

In this blog we will be discussing about the important fundamentals of Equated Monthly Installments i.e. EMI for any type of Loan. So, lets get started.

What is EMI and how does it help you with the loan repayment?

When you discuss about loans, you often associate it with EMI, which is the fixed monthly payments that you make to the lender of the loan that you have opted from. EMI is a compilation of the amount, that is to be paid towards both, the principal and the interest applied to the loan amount. However, the EMI mainly comprises of the interest component, which forms the major portion of the EMI payment during the initial stages. In due course of time, as we proceed towards the loan tenure, the majority portion of the loan amount shifts from the interest repayment to the principal repayment.

We shall discuss about the Loan Payment Schedule in our upcoming blog. Meanwhile, please let us know in case if you have any questions regarding the EMI payment or further details. We will be more than glad to assist you with the required information. Till then, be safe in all your financial transactions, and always make it a best practice to save for the rainy days.

Read More:-

1) WHAT IS LEASEHOLD PROPERTY?

2) FORMS OF OWNERSHIP OF A PROPERTY

3) KNOW THE FACTS BEFORE BUYING A PROPERTY IN PUNE

WHAT IS LEASEHOLD PROPERTY?

Are you in search of a property that you can take on lease? Are you having queries regarding buying a leasehold property? As discussed in our previous blog, let us help you find the answers to your questions, you have been looking for. The following section can help you with more clarity on leasehold property.

What is a leasehold property?

The meaning of Leasehold property is that, if you have taken a property on lease from the freeholder, or the owner of the property for a specific duration. The leases are usually for a long term however, they are customizable depending on the freeholder.

• There is a contract or an agreement that is made between the leaseholder and the freeholder, which defines the legal rights, and the responsibilities of both parties, i.e. leaseholder and freeholder. 
• Maintenance of common areas of the property is usually the responsibility of the freeholder. This would include, maintenance of the entrance and staircase, terrace and walls. Still, if the leaseholder claims the rights to manage the property, then in that case, it becomes the responsibility of the leaseholder to take care of the common areas of the property.
• Maintenance fee, annual service charges, and insurance of the property to be paid by the leaseholder only.
• The leaseholder is liable to pay the annual ground rent to the freeholder.
• The freeholder has the authority to grant permission for any major work that are requested by the leaseholder. 
• The freeholder can set restrictions for the leaseholder as per their requirements, e.g. no permission for keeping pets.
• In case, the leaseholders do not abide by the rules and responsibilities assigned by the freeholder regarding the property, e.g. not paying the rent or the maintenance charges, the leaseholder may have to face the loss. 

Now that you have more clarity on what leasehold property stands for, you may go ahead and buy your dream home with much confidence and general awareness. Hope this was pretty helpful for you. Stay connected and be safe.

Read More :-

1)  FORMS OF OWNERSHIP OF A PROPERTY

2)  KNOW THE FACTS BEFORE BUYING A PROPERTY IN PUNE