How Can Students Best Manage their Money After Graduation?
There has been a substantial increase in the numbers of first-generation and low-income students in India,with many relying on student loans to obtain their degrees. If you have recently graduated and you are healthily employed, paying off your debt regularly, and thinking of investing in property or buying your first home, you may have asked yourself the question: ‘Would I qualify for a mortgage’?
The truth is that you aren’t the only adult who has an existing loan when applying for a mortgage. Provided you have the required ingredients to successfully meet your monthly payments, there is no reason why you cannot take on additional financial obligations. There are many steps involved in making the decision to buy a home. Take LOANYANTRA’s online eligibility test, which well let you know (in less than a minute!) whether or not the timing is right. Speak to their professionals and find out about how you can shield yourself from unexpected rises in interest rates.
It’s a Good Time to Buy a Home
According to the Economic Times, there has never been a better time for the housing sector in India than right now. New government programmes such as Flagship government schemes like the Pradhan Mantri Awas Yojana (PMAY) and the granting of infrastructure status to affordable housing, they note, plus attractive subsidies for first time home buyers are creating both supply and demand. Interest rates are also low, standing at HDFC 8.55% (8.50% for women). Therefore, although you may have student loans to pay off, not buying a home now could end up costing you considerably more in the long run, since your mortgage loan will be for a much higher amount than your student loan, and you will have to pay it off for considerably longer.
How Can LOANYANTRA’s Organic Home Loan Help You?
An organic home loan takes plenty of the work off your hands. For starters, it removes the necessity of having to go from bank to bank to compare their products and make the right choice. LOANYANTRA lets you know which banks are interest in you, providing you with a knowledgeable Relationship Manager, who will guide you and answer all your questions regarding payment terms and times. Once your loan is approved, you will obtain a .10% discount on your first year from the LOANYANTRA.
Additional Benefits from LOANYANTRA
With LOANYANTRA, you also enjoy a wide array of benefits, including loan rate monitoring, part payment alerts, and a comparison of bank offers. When you apply for a home loan, you shield your home loan from periodic rises in interest rates. This is especially important if you are a new graduate, as you need to ensure that no nasty surprises will stop you from fulfilling all your financial obligations. The one proviso is that you do have to be over 22 and you must be earning a steady income.
What Factors Will Affect Your Eligibility?
To work out whether or not you are eligible for a loan. LOANYANTRA uses a formula which works out whether or not your current income covers your monthly mortgage payment, taking into account factors such as your student loan, plus the costs of your principal, insurance, the interest rates of the mortgage, etc. There are other important factors that may be influential in deciding whether or not you are a good candidate for a mortgage. These include your salary, the amount you can put towards a downpayment (which can potentially reduce the amount you actually need to borrow), and the length of time you have been employed/the time you have worked at your present company,
Student Loans Aren’t Everything
The fact that you have a student loan will not in itself disqualify you for a mortgage. You may have read shock stories about students in countries like the U.S. being denied mortgages, but it is important to remember that in the U.S., the average student graduates with a loan of over $37,000. In India, the maximum loan recommended by RBI/IBA for study in India is Rs.10 lakh, and Rs.20 lakh for study abroad. As such, loans are normally paid in 15 years maximum (compared to a 25-30-year maximum in the U.S.).
If you are interested in buying a home, you are over 22 and you are employed, LOANYANTRA’s services can help you pay your loan at a predetermined rate and enjoy additional services, such as part payment alerts and more. You can pay off your mortgage and your student loan, as long as you are earning enough income to make more than one major financial obligation feasible.