# How to build a house without taking a loan

One of the things that everyone wants is to own a home. But we often find that we have to spend a lot of money to buy household items. Most of us have choose home loans and KSFE chits.but later it would be a burden for us. here’s how to build a house the way you want in your mind without taking a loan and without any chit.

There are three main methods that people adopt to find the financial source needed to build a house. The first of these is to rely on bank loans. The second method is to find chits like KSFE. The third method is the WBS method.

Bank loans are one of the most popular methods of choice. This is because of the fact that a large amount of money can be obtained quickly in a very short period of time which attracts everyone to opt for bank loans. But if you look at the interest rates charged by different banks for home loans, it is around 7 to 10 per cent. The only difference is that in each bank this amount goes back and forth a bit. This means that when you take a loan from a bank for a fixed period of time and walk a fixed amount as an EMI every month, the amount you pay at the beginning only goes to interest. The amount going to be very small. So what happens here is you have to take out a loan and double the amount you have to pay in the end.

To give an example, if you take a home loan of Rs 20 lakh at 8% interest for 10 years. The EMI to be paid every month will be Rs.24266. At the end of ten years, the total amount you have paid in this way will be Rs. 29,11862. That means you have to pay extra around Rs 9 lakh here. Also, when you rely on the bank for a loan, the bank will determine how much you owe and the interest. Therefore, it is often not possible to rely on home loans to build a home.

That is, a bank decides how much to lend you based on your monthly income and annual income. That is, if your monthly income is Rs. 40,000 and your annual income is Rs. 480,000, then the cost of living is estimated at 40 per cent of the amount i.e. Rs. 19,2000 and the remaining 60% and the balance of Rs. 28,8000. If the bank estimates the monthly balance as Rs.836.

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In other words, if you divide the repayment by your balance to see the loan amount,24000/836=28.7 lakh will be the repayment amount. Also, it is often not a guarantee that you will be able to repay this EMI amount accurately. Therefore, you should know such things before taking home loans.