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!