Financial management helps in the purchasing of the best plots for sale in Hyderabad. One has to ensure that defaulting of loans is avoided and be able to invest in the best plots in Hyderabad.
Nobody likes to default on repayment of home loans as it not only spoils one’s credit score but also a person finds it difficult to borrow money in the future from banking as well as non-banking institutions. Till the time a person has not repaid the entire loan amount the lender owns one’s property and the original property documents remain with him.
When you take a home loan you have to repay the total amount including the principal and interest in Equated Monthly Installments (EMIs). One’s relationship with the bank does remain intact till a person continues to pay their EMIs on time. The same applies to purchasing the best plots in Hyderabad.
There are difficult times when a person is unable to meet one’s financial liabilities, like for instance during COVID-19. To avoid payment defaults by loan borrowers, the Reserve Bank of India has rather given a six months moratorium for all term loans, but the uncertainty happens to be when will this situation does become normal. Pay cuts, as well as job losses, also do pose a risk of borrowers defaulting on loan repayments.
With this backdrop, it is indeed necessary to know how to handle a situation where repayment is stretched for a longer period of time. An investment in the best plots for sale in Hyderabad can be done if finances are well managed.
Loan becoming NPA
When a person has delayed the repayments for 90 days, the loan does become a Non-Performing Asset (NPA). Banks do treat any sort of loan as NPA only when a person has failed to make a payment successively for about three months. In fact, banks do not immediately seize the assets of borrowers after default.
Impact on credit score
Defaulting on repayment of the loan leads to imparting of one’s credit score. Without a favorable credit score, it is rather difficult to borrow money from any lending institution in the future. And also, since the property is mortgaged to the lender, they can in fact repossess the property and auction it. This applies to the purchasing of the best plots in Hyderabad.
What are your options?
Often people tend to switch off their respective phones and stop communicating with their banks. This leads to problems.
If facing any issue in repaying one’s loan then the person can opt for the moratorium scheme to avoid default. Yet, in case a person has already defaulted on the loan or may in fact become a defaulter in the future due to job loss or even pay cut then it is better not to stop communicating with the lender.
A customer does have the right to
(i) The bank/financial institution to give proper notice and opportunity to pay the arrears before enforcing the security;
(ii) Ensure that the asset has been correctly valued, and
(iii) Requires any excess proceeds from the sale of the asset after satisfying the claim of the bank/financial to be paid over to him/her.
It is better to create an emergency fund that can be used to repay loans in case of financial issues.
Rather than switching off one’s communication channels, it is better for one’s relationship manager at the bank/financial institution and finds out various options available for oneself. Based on this a person can decide what is required. Financial standing can be improved by managing the situation well. This enables the purchasing of the best plots in Hyderabad.
