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4 Reasons Your 20s are the Ideal Time for Taking a Home Loan

  • Highlights

  • Get access to a lengthy tenor by starting young

  • Avail funds as high as Rs.3.5 crore with Bajaj Finserv

  • Observe a repayment schedule to boost credit score

  • Develop financial discipline by taking a home loan

Property purchase at a young age, especially when you are in your twenties, offers rewarding benefits in the long run. With age by your side, you can seek a lot of flexibility on the repayment and tenor of your home loan along withgetting a sanction on a high loan amount. Also, purchasing a home will mean buying an asset that you can use towards tax exemptions and enjoyinga lifetime of security too.

Take a look at the advantages of taking a home loan in your 20s.

Avail the Loan for a Longer Tenor on a Lower Emi

Lenders calculate the tenor of a home loan backwards starting from your retirement age. So, if you are in your 40s or 50syou have less time to repay your home loan, whereas if you are younger you get a longer repayment duration. Lenders like Bajaj Finserv give you up to 20 years to pay off your Home Loan. So, you can pay off your home loan with greater convenience, without feeling a financial strain on your income.

Further, you can opt for the Flexi Hybrid Home Loan, which allows you to pay interest-only EMIs for up to 4 years. This allows you to manage your cash flow better. As your income increases with work experience, you can shift to paying EMIs that comprise both interest and principal components. You can also increase your EMIs after talking to your lender after the first few years in conjunction with your salary increase. This way, you will be able to repay your home loan faster.
Additional Read: Home Loan Tax Benefit

Access high amount of funds owing to your age and earning capacity

Your age and your employment at a reputable organisation make you eligible for a larger corpus of funds for a home loan. Being young permits you to work for more number of years, which creates a bigger earning portfolio for you. Lenders consider such profiles as ‘low risk’ and alternatively will give you a sanction of up to Rs.3.5 crore for your home loan at an attractive interest rate. You can also access further benefits like a top-up loan, 3 EMI holiday, and customised insurance schemes along with the sanction when you choose lenders like Bajaj Finserv.

Repay the loan on time to improve your credit score

A longer tenor of repayment gives you the freedom to balance your EMIs alongside other financial obligations. Creating a breathing space for your finances will help you plan your savings and expenditures in a better way keeping long-term goals in mind. Moreover, a healthy financial history and a good repayment schedule will help build your credit score. You also have the option of making your home loan repayment more affordable by using your bonus to make part-prepayments towards your loan. Lenders like Bajaj Finserv charge nothing extra when you make such prepayment. This will further reflect positively on your credit score and help you decrease your interest obligation.

Additional Read: Types of Home Loans

Home Loan EMI Calculator

Become responsible by securing your future

A home loan is a long-term commitment, and repaying it carefully will make you more disciplined towards saving and spending. With each EMI that you pay, you will get more confident about the asset that you are creating for your future. Moreover, real estate prices are always on the rise, so investing on a home at a good location will fetch you good returnsdecades after you have repaid off your home loan.

Getting a secured loan like a home loan in your 20s is a wise financial move, as it offers myriad benefits including tax savings and repayment flexibility. Find out if you are eligible by using this home loan eligibility calculator.

Additional Read: Home Loan Without Down Payment

Bajaj Finserv brings you pre-approved offers for personal loans, home loan, business loans and a host of other financial products. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
Need instant financing? Think it. Done with Bajaj Finserv.

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