The down payment agenda

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Loan

   How can you devise ways to arrange for your down-payment? Keep the following pointers in mind before taking the plunge.

   In literal sense, down-payment means the initial payment made when something is bought on credit.

   While planning to buy a home, we should keep in mind of ways to finance the home in two parts, i.e. down payment and EMIs.

  The thumb rule says that higher your down-payment, the lower your loan and monthly payment would be.

Here are some tips:

* If you have applied for a home loan, try and set aside some money from that;

* Cut down your outings, vacations and frequent trips to malls. You will end up saving a lot of money;

* If friends and relatives are the ones who you can trust, try and borrow some money from them;

* Take up a part-time job for some time;

* Raising money by selling your investments is generally not a good idea. However, if need be, then you can opt for this option too;

* Gold loan is also a safe and simple way to arrange for finances. A gold loan is available for tenures starting from six months upto 48 months. As per prominent banks, one can avail a minimum of Rs 50,000 onwards. Gold loans for less than Rs 50,000 are also available for rural markets;

* Maintain a separate saving account as this is a convenient way to save. Ensure that you never use the savings for any purpose other than your down payment and new home expenses.

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source: The Times of India.

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