Tips To Manage Your Home Loan EMI In India

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I won’t be wrong in saying that a home loan is probably one of the major financial commitments most of the people make. Well, home loan EMIs can stay with you at least for a decade and it easily consumes most of the monthly expenditure. Therefore, borrowers are always on a lookout for some or the other way to bring down the burden of home loan interest. If you are one of those borrowers, then you can make the most of the following tips to manage your home EMIs.


Compare Different Loan Options
If a 20-year fixed-rate loan scheme worked for one of your friends, this doesn’t mean that it will work the same way for you as well. May be a flexible loan term will prove more suitable for you. While some people prefer to have those same fixed-rate loan offers, others favour an adjustable-rate loan having lower initial payments. Every home buyer has a different financial condition, so it is important you have made a choice as per your needs and requirements.

Know Your Credit Score
Remember, your credit score plays a pivotal role in acquiring the best home loan deal, so make sure you have a respectable credit score. While you are in the process of home buying, it really helps to carry your credit report. You can check how your potential lenders will see your credit profile and take steps to make improvements in your credit score accordingly. Are you wondering from where you can get both your credit report and credit score? Well, you can have both of them from CIBIL (Credit Information Bureau India Ltd) by paying a nominal fee. 

Pay Higher EMIs
While paying higher EMIs will mean that you will be spending a considerable amount from your salary, however, this is one of the best methods to pay off your home loan much earlier. You can do this in different ways without facing any financial burden.

In case your bank offers you a home loan having a blend of regular term loan or credit line facility, you can reduce a considerable number of months and even years from your loan term. You just need to pay a slightly higher interest rate. Generally, the banks allow Rs. 10,000 as prepayment amount and they don’t levy a charge for it. 

Go For Home Loan Balance Transfer
As per this option, you have the facility to transfer your pending home loan balance to another lender at a reduced interest rate. Make sure you have opted for this facility only if your lender is against reducing your interest rate. Current borrowers from non-banking finance companies (NBFCs) and housing finance companies (HFCs) can make the most of this option to transfer their home loan balance and take advantage of MCLR-based interest rates.

Manage Your Funds Wisely
If you really want to manage your Home Loan EMIs, it is important you have increased your cash flow. In case you have taken more than one loan, then make sure you take some time out and compare them with your savings and investments.

Making cash down payments is one of the effective ways of managing your loan payment. Entirely depending on your lender and the type of loan, the down payment can vary from 2.25% - 20% of the purchase cost of the home. In order to bring down the burden, it is important to ascertain a monthly budget that will help you to keep a major chunk to make the down payment.

Content Written By - Deepali Sharma

Deepali is a freelance writer. She is an expert in inbound marketing, content marketing, and lead generation.

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