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Why do we need to prioritize the requirements for home loan rates? Any home loan package is a multi-faceted product with several key components. You can never know which one will be crucial in long run. Will you need zero prepayment of floating home loan interest rates? Or will it be stability of hybrid interest rates that will serve your family better? So, as a multi-faceted product, prioritization is a definitely a challenge. So, here is a step-by-step plan for it.

Step# 1: Know thy self

It is a cliché but considerably applicable to today’s financial situation. You cannot undertake any financial decision effectively without understanding your finances for today and tomorrow. Home loan interest rates in India affect your EMIs and monthly cash flow, so take a stock of your current assets, liabilities, earnings and expenses. Make a smart judgement about the expected expenses, which will allow you to figuratively estimate the percent of your monthly income that you can set aside for home loan EMIs.

Step# 2: Reverse-engineer home loan rates

Home loan interest rates can be calculated with home loan EMI calculators. But, a bigger practical challenge is that it is hard to get idealistic and affordable housing loan interest rates in the current Indian economy. What you need is a roughly calculated range of EMIs that you can reasonably pay every month. This range must be reconsidered if you want to opt for a shorter home loan tenure. So, run multiple potential simulations where you have a decent understanding of what you can afford. This will help you to negotiate well with your potential lender and ask for home loan rates that you can actually afford; or and walk away if you do not get the offer that you can comfortably repay.

Step# 3: Be smart about customizable options

The borrower’s housing loan approval process should never stop at home loan interest rates. You may get the best home loan rates . But, they won’t be helpful enough to navigate through the ups and downs of the home loan tenure; if you do not have an understanding of how to use the customization options to your advantage. Therefore, consider how you want to fine tune options like the following for your loan structure:

• Processing charges
• Type of home loan rates
• Prepayment charges

Of course, it does not have as much bearing on your EMIs as the housing loan interest rates. But, you can be rest assured that ignoring these details can be an uneconomical decision for you. So, think long term and invest your time in making smart decisions. It will serve you well indeed.

The one issue that any start-up construction company faces is capital. The business is just getting off of its feet which mean money will not be easy to come by. But the paradox here is you NEED money to get your operations going. Those backhoes and diggers and other heavy duty equipment you need – they certainly aren’t cheap. Then there is the matter of you being a newbie in the industry which means that a business loan won’t be easy to obtain either. So how DO you get the ball rolling? What means do you have of acquiring the machines that are essential for you to deliver your services?

The answer is construction equipment financing.

There are various companies out there that are willing to take the risk of providing loans to start ups for their machinery and equipment needs. Of course their terms and conditions will be a bit different from what you would expect in a regular term loan. The equipment that you will buy will have to be mortgaged to secure your payoff. The financer will also perform a stringent analysis of your future business prospects. But this money can be the life-blood you need to kick-start your enterprise. Matching these eligibility requirements is something you should seriously look into.

So how do you ensure that you make the right decisions when it comes to heavy equipment financing?

• First you must understand that the financing you are about to avail can make or break your business. Be sure you are ready to take up the responsibility.
• Carefully go through the different construction equipment financing plans that different lenders offer. A thorough study of all the options is a must here.
• Look into their eligibility criteria next. That will narrow down your list of financers considerably.
• Always check the terms and conditions of the loan they are willing to offer, especially of the company that is offering a too-easy-to-be-true loan. Beware of falling into a trap which you are incapable of getting out of.
• Check their repayment terms carefully. Look for hidden charges and overheads.
• Scan through the experiences of past customers. How do they rate the lending company’s services? What do the review portals say about them? Or the social media? Look for any clues on their service quality.

Now comes the hardest part. Once you have found the right heavy equipment financing company and availed of the loan from them, the true struggle begins. You are a start-up enterprise. How on earth will you be able to pay back all that money?

Here are a few tips on making some smart savings

• Take a look at your buying habits. Do you buy construction material in bulk? Consider buying in off season?
• Think about a liaison with your local supplier and agree on terms that are easier than the market price.
• Keep an eye out on the market for any new deals, offers and clearance sales.
• Don’t overlook the small savings like on utilities and regular bills. Even if you save $100 a month it still totals out to $1200 for the year.