Thumb Rule: You should keep a few things in mind before taking a loan. In such a situation, today we will tell you about such a rule, which you can put in your situation and see how when you should take a loan.
Keep this thumb rule in mind before taking a loan, the budget of the house will never deteriorate
Thumb Rule:It is everyone’s dream to have their own house, car or live a life of luxury. However, it is very difficult to achieve, not everyone is able to do it. The first reason for this is inflation and the second Loan There are increasing interest rates on (loan). Accordingly, people’s income is not able to compete with fulfilling their dreams. But, it is not that it has become impossible to buy a house or a car in today’s time. with changing times affordable loan Has made it very easy for people to buy all these.
Nowadays it is very common to make your dreams come true by taking loan. But, before taking a loan, you should keep some things in mind. In such a situation, today we will tell you about such a rule, which you can put in your situation and see how when you should take a loan.
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Keep these things in mind while taking loan
Before taking a loan, you should ask yourself some questions keeping in mind your pocket. Like, how important is it to take a loan. How much loan can you afford. How much loan would be right to take? Salary-debt ratio should not exceed 40%. Where can I get cheap loan? Is your credit score maintained or not? Also, always keep in mind that you have to repay this loan in full one day.
rule of 40
At the time of taking a loan, the bank asks you about your current liability, such as personal loan or car loan EMI ie monthly installment. Keep in mind, the bank will never give you a loan of such an amount, whose EMI is 45 to 50% of your take home salary. Therefore, it would be better that you take such a loan that the EMI does not exceed 40% of your monthly income. At the same time, the total EMI ie car and home loan EMI should not exceed 50%.
short loan duration
Instead of taking a long duration loan, you should take a loan for the short term. By doing this you can get rid of the burden of EMI quickly.
To avail the loan, you have to maintain your credit score. A credit score of 750-900 is considered good for taking a loan. With this score, it becomes easy to get a loan. After this 700-749 is also a good credit score. Credit score of 650-699 is average, having such a score, you may face difficulty in getting loan.