Why Salaried Professional Prefer 30-Year Loans?
But sometimes, such loans are also sanctioned to those aged more than 30, says Karnad. "For those above 30, we may approve the loan with a step-up repayment facility. Here, the lender reviews the borrower's repayment capability after fixed periods and increases the EMI. For instance, a borrower starts with an EMI of Rs 10,000, which is increased to Rs 12,000 after three years and to Rs 15,000 after another three years and so on, in a manner that the term does not extend into the post-retirement period," she said.
According to Deo Shankar Tripathi, president and chief operating officer of DHFL, the company doesn't lend to those with volatile incomes—stock brokers, freelancers and artists. But self-employed individuals could secure such loans even at the age of 35, as these individuals don't retire till the age of about 65. "We also see if the property being bought will be marketable in unforeseen circumstances," he said.
If you do not fall in the category of borrowers such products are meant for, lenders might seek a co-borrower because in a rising rate environment, tenures might stretch beyond 30 years. This might not be easy for some borrowers as banks do not allow extension of loans beyond 30 years. Thus in such cases, borrowers will be bound to prepay.
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