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Reduce your Home Loan EMIs


Purchasing a dream home is one of the most costly and life time event for every home buyer. Mostly every home buyer chooses an option of Home loan for using to their dream home. This is the very common way to purchase a home. If you are going to purchase a home by taking a loan then you should know the whole procedure or the same. To get details for the same you can refer: Procedure of getting Home Loan . But at the time of the repayment of the loan, if you are unable to pay home loan EMIs then what should you do? To solve this problem Flatons Real Estate Advisors giving you the guidance through:  What you can do if unable to pay home laon EMIs?

When the real estate prices are sky touching and the interest rate is also very high the direct impact is on the EMIs which we need to pay monthly. The budgets are tightening because of the Monthly installments are increasing with the increased interest rates. In this case, do you have any idea that you can reduce your home loan EMI? Yes, there are many options to reduce the home loan EMI to maintain your monthly budget. Let’s have a look:

Pay High Amount of EMI:

If the RBI increases the repo rate, many prominent players are raising the interest rates on all the loan products. In this case, you can opt for paying higher EMI. Paying an extra EMI will definitely leads to reduce it in future. But, this option is suits you only if your income permits the extra outflow.

Rise Home Loan Tenure:

This is very simple option to reduce the monthly home loan EMIs. On increasing the tenure your current EMI will be reduced although the net repayment may be higher. The bank keeps your EMI same but increasing the number of EMI which you will have to pay by extending your loan tenure. However, this should be used as a temporary option only. Any increase in tenure will increase the total interest payout.

Negotiate with your Home Loan Provider:

It is always advisable to bargain with your home loan provider to come up with the lower rate of interest. They may have a better plan for their existing customers and banks are keen to retain existing customers. If the bank doesn’t want to lose the valued customer then it will offer low rate of interest. It is quick, and involves fewer formalities for reducing your home loan EMIs burden.

Refinancing from the Home Loan Provider:

The current rate of the home loan is cheaper than before, then why you should pay the extras? In this case, refinancing from the existing home loan provider or bank is the best option. It can help you reduce your interest rate in the long run. This leads to reduce your home loan EMIs.  Some banks don’t have this option open for customers.

Switching Home Loan Provider:

Even after the negotiation the home loan provider does not offer you the lower interest rate then it is advisable to switch another one. Compare the benefit you get by retaining and what you get in switching to new loan provider. If you get more benefit from switching home loan, go for it. Different lenders or banks have different interest rates and you can get a better bargain by taking your loan to a different bank.

Partial Prepayment:

If you pay the part amount o the loan at the time then your EMIs may be reduced as the principal portion of the EMI gets reduced. Usually, on prepayment, the EMI is kept constant but the term of the loan is reduced to reflect the reduced principal. It will help in reducing your financial burden and will help you to manage the monthly budget.

Before going to take a decision regarding the repayment of the home loan, check out all the option as well as their pros and cons. And choose which is suitable or you.



Category : Flatons Advisors Blog



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