A Discussion on Step-up Loan

By Petra Amelia on November 14th, 2007

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Loan companies offer many types of loans for home construction or for buying a ready to shift home. The loan companies even re-finance existing loans that borrowers may have availed from other banks. The loan approved by the lender is based on the person’s age, salary, educational qualification, credit history and previous employment track record. If you want to increase your loan eligibility then you can club your spouse’s income in the loan amount. Some banks lend an amount where your monthly EMI outflow is 30 to 50 percent of your salary. When the EMI payment is made during the initial years, a large amount of money is made in the form of interest repayment. In step-up loan the amount of EMI is pretty low and is easily affordable for young working people. After some years the amount of EMI increases because it is assumed that the borrower will get promotion and earn more but still the amount of EMI looks affordable by the borrower.

Read: economictimes.indiatimes.com

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