Buying a home or property is a dream for many people. But with property prices going up every year, most buyers cannot pay the full amount at once. This is where real estate loans, or home loans, come in. They allow people to buy property now and pay for it over time.
But the big question is: are real estate loans a smart move or a risky step? To answer this, we look at the views of Someshwar Srivastav, a well-known name in real estate and finance. With years of experience, he has guided many investors and homebuyers on how to make safe and smart property decisions.
In this blog, we will explain what Someshwar Srivastav thinks about real estate loans, the advantages, the dangers, and how to use loans in the right way.
Understanding Real Estate Loans
A real estate loan is money borrowed from a bank or financial institution to buy property. The borrower then pays it back over time in monthly installments (EMIs), with added interest.
For example, if a flat costs ₹60 lakh and you only have ₹15 lakh, you can take a loan for ₹45 lakh. You then repay the loan over 15–20 years, depending on the agreement.
Someshwar Srivastav explains that loans make property ownership possible for middle-class families who may not have full cash in hand. But he also warns that loans must be handled with care.
Why Real Estate Loans Can Be Smart
According to Someshwar Srivastav, loans are not always bad. In fact, they can be very smart in certain situations. Let’s see why:
- Making Dreams Possible
Without loans, many people would never be able to buy property. Loans bridge the gap between savings and the actual cost of the home.
- Building an Asset
When you buy a house with a loan, you are not just spending money, you are building an asset. Over time, property prices usually go up. By the time you finish the loan, the property value may have doubled.
- Tax Benefits
Home loans also give tax benefits. The interest you pay and the principal amount you repay can help reduce your taxable income. This means savings on tax while building wealth.
- Creating Discipline
Loans force you to save regularly. Since you must pay EMIs every month, you cut unnecessary expenses and focus on building a valuable property.
When Real Estate Loans Become Risky
Someshwar Srivastav also highlights the risky side of loans. If not managed well, they can create stress and even financial loss.
- Over-Borrowing
Many people take very large loans to buy luxury homes beyond their budget. This creates huge EMI pressure. If income reduces or jobs are lost, it becomes hard to pay.
- Interest Burden
The longer the loan, the more interest you pay. For example, on a ₹50 lakh loan over 20 years, you may end up paying almost ₹90 lakh in total. That’s nearly double the property price.
- Property Market Fluctuations
Sometimes property prices do not rise as expected. If you borrow heavily and prices remain flat, you may not get good returns on your investment.
- Stress Factor
Loans create long-term commitments. Carrying debt for 15–20 years can be mentally stressful for some families, especially if they already have other financial needs.
Someshwar Srivastav’s Golden Rules for Real Estate Loans
To balance the smart side and the risky side, Someshwar Srivastav gives simple rules that every buyer should follow:
- Borrow Within Limits
Never take a loan where the EMI is more than 30–35% of your monthly income. This keeps finances stable and avoids stress.
- Choose Shorter Tenures
A shorter loan period may mean higher EMIs, but it reduces the total interest paid. Someshwar Srivastav advises choosing the shortest term you can afford.
- Always Keep Savings
Do not put all savings into the down payment. Keep at least 6–8 months of EMI as an emergency fund. This gives safety in case of job loss or medical needs.
- Research Property Well
Before taking a loan, make sure the property is in a good location, has legal clearance, and has growth potential. A safe property ensures your loan works as a good investment.
- Compare Loan Offers
Do not accept the first loan offer you get. Compare interest rates, processing fees, and repayment flexibility from different banks before deciding.
Smart vs. Risky: Finding the Balance
So, are real estate loans smart or risky? Someshwar Srivastav says they can be both.
They are smart when:
- The loan is small and manageable.
- The property has strong growth potential.
- The buyer has stable income and emergency savings.
They are risky when:
- The loan is too large compared to income.
- The property is over-priced or in a poor location.
- The buyer has no backup savings for tough times.
In short, the loan itself is not good or bad. What matters is how you use it.
Someshwar Srivastav’s Final Advice
Someshwar Srivastav believes that loans should be seen as tools. Just like a tool can help or harm depending on use, a loan can build wealth or create debt traps.
His advice to buyers is:
- Be practical, not emotional. Don’t buy a property just to show off.
- Do the math. Calculate your EMI, future expenses, and possible risks before signing.
- Think long term. A property is not a one-year plan, it’s a 10–20 year journey.
- Stay disciplined. Pay EMIs on time and avoid missing payments to keep your credit score strong.
Conclusion
Real estate loans are neither fully smart nor fully risky, they are a mix of both. For many families, they open doors to owning a home and building long-term wealth. But they also carry dangers if taken without planning.
As Someshwar Srivastav explains, the key is balance. Borrow only what you can repay comfortably, choose the right property, and always keep safety funds. With this approach, loans can become a smart step toward financial growth rather than a burden.