Nowadays, few people can imagine buying or building a house without taking a loan from banks and financial institutions. It is difficult for almost everyone to build a house without going to the bank as they have to save a lot of money.
It is also important to have skills in getting a loan from a bank. If you study hard enough to get a loan, you can save a lot of money.
Today we are going to give you some information on what to consider to reduce the debt burden.
- Compare the base rate of the bank and financial institution before you take a loan. Most of the time, banks are launching various home loan schemes.
- The price is relatively low when the scheme is introduced. At other times, you can see which bank’s base rate is lower.
- If you take a loan from a bank with a low base rate, you can get a loan at a low-interest rate. To reduce EMI, you should also go to a bank with a lower base rate. This is how money can be saved.
- As per the directive of Nepal Rastra Bank, the banks have introduced fixed and variable interest rates on home loans from November 1. According to the bank, fixed interest rate schemes are also different.
- You can save money even if you take a loan from the bank with the lowest fixed interest rate by comparing the fixed interest rate offered by the banks.
- Most banks usually charge a service fee when disbursing a loan. Recently, Nepal Rastra Bank has imposed a cap on service charges.
- At present, Class A banks are not allowed to charge a maximum of 0.75 percent, and Class B development banks are not allowed to charge more than 1 percent.
- You can bargain on service charges at the bank.
- Reducing the bank’s ‘processing fee’ also saves money.
- Even if the certificate and credit history is strong, bargaining can be done with the bank to reduce the interest rate.
- Even if the service fee can be reduced by only 0.25 percent interest, a large amount of money is saved.
The more down payments you can make, the lower the loan amount will be.
- This not only reduces the EMI but also saves a large amount of money to the bank in the form of interest.
It is beneficial to reduce the size of the loan ahead of time.
- This reduces the burden of debt and interest. Loans below Rs 5 million do not incur additional charges.
- However, loans above Rs 5 million incur an additional fee of up to two percent of the pre-payment loan amount.
- The biggest savings come from EMI. If the term of EMI can be reduced, a large amount of money can be saved as interest.
- Some banks are offering discounts on service charges, processing fees, and interest rates when giving loans to women.
- Banks and financial institutions