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The home loans obtained in the early twenties can have a long tenure for the repayment of the loans. The loans can be availed for a tenure of a maximum of 30 years. The banks charge an interest rate starting from 6.50% per annum. The banks are keen on extending the loans to achieve their financial targets and thus expect the borrower to have a good credit score and proper source of income. Banks preferred customers are the ones who are amongst the salaried ones; however, banks may approve the loans of the self-employed people and the ones who have proper business registration, have a profitable balance sheet, and the ones who file proper GST & income tax. The 20’s age group includes those in the age group of 20-29 years. It is very difficult for people in their early twenties to avail themselves of home loans as people are just at the beginning of their career and do not have adequate savings or income. The banks prefer the younger age groups as these people are amongst the long-time payers of the loans.
The borrowers of the age group of the ’20s are amongst the very few ones for the home loans borrowers. As the decision making for the purchase of the house is very difficult and thus the borrowers amongst these categories are very less. The very few people who become successful in their careers are the ones who can buy the flats at least in their late twenties. The early age borrowers get a longer period to repay their loans, and thus the monthly installments being charged are also low. For a longer duration, when the loans are taken, the banks charge lower monthly installments, thus making it convenient for the borrower to repay the loans. The major hurdle while applying for loans amongst the age group of the ’20s is the need for appropriate income to avail of loans. Banks approve the loans of 40-50% of the monthly salary as an installment for the loans. The borrower should also have the income tax receipts while applying for the loans. The ones who have the family business and thus have higher income are also the better target segment for the loans. And also the ones who are passed from the premier institutes and thus have a great start at the beginning of their careers.
Benefits of taking loans by the people in their early twenties:
- Higher amount of loans eligibility:
As the people in their twenties have long years of service available thus the banks are keen on extending the higher amount of loans to such borrowers. The longer amount of loan is extended to such people who have huge years of service; thus, the repayment of higher loans is easy for the beginners of their career.
- Longer tenure of home loan EMI:
Also, along with the higher approval of loans, the higher tenure of loans is another benefit for the borrowers of the twenties age group. The banks approve loans for longer tenure as there is a large span for the people to retire and thus have long years of service available. So longer tenure benefit is applicable for the people amongst the twenties age group.
- Higher eligibility:
The future rise in income possibility is very high. Thus, borrowers in their 20’s have higher chances of the loans getting approved easily with the high amount and flexible repayment options.
- Better & bright future:
The loans may be approved easily as the young borrowers of the loans can have a far better and brighter future than the higher-age people. People belonging to higher age groups are amongst those whose income may have reached the saturation point, while those at younger ages have a brighter future, and the chances of income growth are high. In that case, the borrower may also pay higher amounts of EMI’s to become early debt-free. Thus the banks are keen to extend loans to the youngsters.
Conclusion:
Thus the people amongst the twenties are the ones who have easy access to loans due to long years of service and an estimated hike in the income due to long years pending for the service or business. Banks always target the younger age group for the disbursement of the loans as people are amongst the ones with very high growth potential.
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