Key Points
You can buy stocks by paying only 15-20% of the transaction value..
Two months ago, the RBI directed lenders not to extend loan tenures, but give borrowers the choice to increase their EMIs or make a part payment to counter the impact of the increase in rates..
With home loan rates touching 9%, prepayment of outstanding loans could be the best investment right now for those with long-term loans...
Till now, the default option was to extend loan when interest rates went up.RBI has now directed lenders to give borrowers the choice to increase EMIs to retain tenure.Borrowers can also make a part prepayment to reduce the Floating rate outstanding amount...
Sometimes it becomes necessary to go for a longer tenure to fit the EMI into a tight budget. If you are forced by circumstances to take a home loan for the long term (15-20 years), try and increase the EMI amount every year in line with the increase in your income..
