An applicant has several choices in terms of finding the most suitable housing loan, similarly there are a number of repayment options too which can be explored as per one’s financial capacity of making timely payments to the bank. Choosing the right mode of repayment allows the applicant to avoid any hassles or stress related to delayed loan installments. Let us have a look at the various choices of repayment:

Accelerated Payment plan – This particular mode of repayment offers an applicant, the freedom to increase his/her EMI (Every month Installment) in order to close the loan as soon as possible. Accelerated Payment Plan is most suitable for those who need monetary assistance from the bank on an immediate basis but posses the ability to repay the loan within a short period of time by increasing their monthly installments.

Step-up Repayment plan – Applicants who have a stable career are most likely to receive this particular repayment option from the bank. Here, the bank verifies, the applicant’s current professional details and accordingly sanctions a certain loan amount for purchase of a residential property. The EMI’s within this plan rise over time as and when the applicant experiences a subsequent growth in his career. Depending on the applicant’s professional career, the bank can also decide on sanctioning a higher loan amount.
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