Buying property at a young age, especially when you are in your twenties, is a good idea as it allows you to create an asset for your future. To facilitate this purchase, it is likely that you will consider taking a home loan. If you have any doubts about taking a loan so early in life, set them aside, because now is the best time to do so! Take a look at the many advantages of taking a Home Loan in your twenties.
Avail the loan for a longer tenor, on a lower EMI
The tenor of a home loan should ideally end before you retire. So, if you are in your 50s when you take a home loan, you can avail a tenor of around 10 years to repay it, as this is the time frame in which you will retire. But, if you take a home loan in your 20s, you can avail the maximum tenor that the loan comes with. You can repay the loan in 15–20 years and then focus on planning for retirement. Also, if you take a loan with the maximum tenor, you can benefit from paying lower EMIs each month. This will reduce your monthly outflow and allow you to save simultaneously.
Outstanding debt with late EMI payment reduces your score
When you take a Home Loan from Bajaj Finserv, you can get up to 40 years as your tenor. This will help you buy an asset while keeping your monthly cost to a minimum. Besides, you can also avail features like a 3 EMI holiday and customised insurance schemes.
Access a high amount of funds
Your age and your employment status play a big role in determining how much you can avail as a loan.If you work at a reputed firm, for example, it tells the lender that you have the income needed to repay the loan and so, you may be able to borrow more.
Besides, since you are young, you have several decades in the workforce ahead of you. This indicates that your income is likely to grow over the years, which will build the lender’s confidence in your repayment ability.
Improve your credit score
With a long tenor and low EMIs, you can balance repayment with other financial obligations, without letting either suffer. As you steadily repay your loan in a timely manner, it will help build your credit score. Besides, if you use cash from bonuses to make part prepayments, this will further improve your credit history. To make the most of this, ensure that you pick a lender with convenient prepayment and foreclosure terms. For example, Bajaj Finserv doesn’t charge you an extra fee when you choose to avail these features. With a good credit score, you will find it easier to avail a loan in the future, if need be.
Secure your future
A home loan is a long-term commitment, and repaying it will bring discipline to your finances. Also with each EMI payment, you will get confident about the asset that you are building for your future. Moreover, real estate prices are always on the rise, so investing in a home in a good locality now will fetch you high returns, even decades after you have repaid your home loan.
So, taking a home loan in your 20s not only makes the loan easy to repay, it also builds your credit score and helps you create an asset that will secure your future.
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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