Turning the vicious home loan circle into a virtuous one3 min read . Updated: 16 Apr 2014, 06:33 PM IST
There are three effective ways of avoiding getting into home loan debt trap
It was a lazy Sunday evening and I was getting ready to watch “Koffee with Karan" when I got a frantic call from a friend. I put the show for recording before proceeding to listen to her agonized conversation. She was extremely upset upon discovering that her home loan—which had an outstanding of 50 lakh in January 2008, a tenor of 156 months then (13 years) and a loan rate (floating) of 8.25%—had increased in tenor drastically, even after paying equated monthly instalments (EMIs) for 5 years 2 months without a single default. The outstanding tenor on her home loan was still 200 months (nearly 16.7 years) as on February-end 2014. Why this shocked her was because she had expected it to be less than eight years.