EMI will last for 33 years instead of 20 years! Home loan will become a big hassle, do not make this mistake, even by mistake.

Whenever banks change the interest rates, the period of repaying the home loan increases. Most people do not pay attention to this in the beginning, but later, when they come to know about it, they complain about it to the bank.

Everyone wants to buy a house, but no one is able to buy a house without a home loan. The price of houses is so high that, apart from a few rich people, everyone else needs a home loan to buy a house. However, most people often make a mistake after taking a home loan, due to which their loan, which could have been repaid in 20 years, takes them 25 to 30 years to repay it.

Whenever banks change the interest rates, the period of repaying the home loan increases due to this. Most people do not pay attention to this initially, but later when they come to know, they complain about it to the bank. Many times, by the time they notice this, it is too late and you suffer a huge loss.

Let us understand with an example

Suppose you took a loan of Rs 30 lakh at the rate of 8 percent for 20 years. In this way your EMI will be around Rs 25,093. Let us assume that after 5 years of taking a home loan, the rate of your home loan becomes 11 percent. At this time, the outstanding principal amount of your home loan will be around Rs 26 lakh, because in the initial years the interest part is more in the EMI, while the principal amount part is less.

In the situation after 5 years, you will feel that now 15 years of EMI are left, but this does not happen. Actually, as the interest rate increases, the tenure of your loan is adjusted keeping in view the EMI. Due to this, your EMI remains the same, but the tenure of your loan increases.

So if your EMI is kept the same as before, i.e. around Rs 25,093, then the remaining period of your loan will not be 15 years but 28 years. Here, if your EMI is seen on the basis of 15 years, then it will increase to around Rs 29,500. In this way, what you were going to repay in 20 years, it will take you about 33 years to repay it.

What to do in such a situation?

If you do not want the period of your home loan to increase, then whenever the interest rates increase, you will have to talk to the bank and get your home loan restructured. You will have to tell the bank not to increase the period of your home loan, but to increase or decrease the EMI according to the new interest rate. Most of the customers make this mistake and do not get the loan restructured from the bank, due to which they have to face problems later.