All
the customers who purchase property with the help of a home loan are requested
to make down payment or margin money payment towards the sale consideration of
a property. Usually before buying any property the vendee(purchaser) will finalize
a property and pay some advance amount and get into agreement of sale with the
Vendor(seller). Then purchase after applying for a home loan and at the time of
disbursement bank will ask the purchaser to pay complete margin money which is done
for payment to the vendor through bank. The margin money which the customer
pays will stand as his own contribution in purchasing the property other than
the bank loan.
It
is always advisable to each and every customer to make more payment towards the
margin money as it will reduce the EMI burden which the customer need to pay on
Month on month basis. If the customers make more margin money payments he will
have more no of benefits of which some are stated below.
- Higher the margin money Lower will be the EMI
- Can opt for lower repayment period
- Interest Rate hikes will not affect the customer at any point in the repayment period
- Can save money and make part payments which saves interest on the paid amount
- Can avail home loan linked insurance at a lesser single premium
- If affected by any financial circumstances then customer can avail top-up loans on the property for a period of 10 years
- Lessee will be the banks processing fee
- Can avoid tenure hikes which happens by the interest rates revision
So
plan accordingly before going for a home loan to make maximum down payment to
be liability free for the complete home loan tenure.
