Get To Know Home Loans
It’s nearly impossible to ignore the struggles that aspiring homeowners face. With multiple challenges to get on the housing ladder, repaying a home loan is a serious commitment that can extend for 20 or even 30 years. The other challenge for borrowers is the high EMIs if chosen for a shorter tenure.
New-age financial institutions understand this financial and psychological burden that a consumer goes through. To reduce the burden, banks keep coming up with new facilities. One of them is an overdraft facility on a home loan.
Home loan overdraft is a type of loan that allows borrowers to borrow money from their home equity, which is also called short-term credit. This facility can be helpful if you need to make an emergency purchase and don’t have the cash on hand. But it can also be expensive. So, it’s important to know how much an overdraft will cost before you use one. Let’s read below to know the pros and cons for the same and who should go for it.