Home loan interest rates - killing us. Review on Taking a Home Loan

Do you have a home loan? Do you feel the pinch of latest

increase in the interest rates? Are you burdened with the increase in your EMI?

Are you worried about the future?

Well you are not alone. There are millions of people in India who are

stuck down badly by the increase in the home loan interest rates. Their EMI

have gone up or the tenure has increased badly. Either way there is a solid

blow to the finance of the middle class people who have taken loan for their

house at lower interest rates between 2004 -2006. I am one of them and I am

definitely shaken by the recent increase in the interest rates.

I had taken

loan of 20, 00, 000 for a floating interest rate of 7.25% and now the bank is

charging me 9.75%. My tenure has shot up from 15 years to 18.5 years. By the

end of 18 years I would be paying almost 40, 00, 000 to the bank. I am worried

about my future now. Though the salary does not increase much the loan interest

rates goes up drastically.

I been reading the various articles in different finance site

suggesting and advising how to cope with the increase home load rates. Few

authors have given a logical solution to minimize the impact of increase

interest rate by doing a part payment of the loan while some authors have

suggested the ultimate option by selling house and settling home loans. While

the former seems feasible provide you have access cash on hand but the later is

an ultimate step any house owners will do. We buy house to stay there. We

renovate and decorate the houses as per our style and comforts. Our mothers and

wives design their kitchen as per their comfort with lot of love. We all do

this as we love the place we live and we want to dwell in our house in

happiness. By selling this house to settle a home load will be like killing our

own self. A lot of emotion goes in making a house of four walls a home and it

will be very painful for any person to part with their house. Though this

option will definitely suit the house bought for investment and they might

actually make profit out of it.

Few authors have also suggested saving extra every month,

cut down on cost, decrease mobile bill, cut down on credit card expenditure,

cut down on vacation and keep away from luxuries. This option will work well

for a small extra saving in the house.

I have read comments of many peoples who are suffering from

this burden and they all are frustrated with this change. So I am. People are

blaming the government, finance ministers and bank for burdening them with the

increase in home load interest. But who will listen. RBI has taken this step to

cut down on the inflation which is at its peak now at the expense of common

man.

There are lots of suggestions by affected people to form a

forum or body and present our situation to the government. But will it really help?

While the common man is struggling to meet the ends the banks are laughing all

the way to book a good profit this year. No matter what we have to live with

this and wait for miracle to happen. God save us!