New Delhi | Jagran Brand Desk: The first home purchase is a joy like no other for most of us. Your home not only serves as a place for you and your family to live in but also serves as an assurance that your finances are secure for a long time. However, achieving this goal is difficult. The high prices of properties and homes in India make buying a home quite a difficult task. You can achieve your dream of owning a home, but you might require a home loan.
A home loan is one of the best solutions to the current inflation challenge in India. But, while it's true that a home loan can provide you with a home, you must consider the home loan interest rate applicable to your home loan. Applying for a home loan from a trustworthy lender like Bajaj Finserv ensures that you enjoy pre-approved loan offers and the lowest home loan interest rates available. Using our online home loan calculator guarantees that you get accurate information about the Equated Monthly Instalment (EMI) you will pay for your home loan.
Read on to learn about the home loan EMI and how it affects your home loan.
What is Home Loan EMI?
A home loan EMI represents the fixed amount of money payable on your home loan. This home loan EMI comprises part of the principal loan amount with which you purchased the property or home. It also comprises a part of the interest which you pay too. Some EMI payments tend to be higher than others.
Sometimes, you get lured into a home loan deal with a high home loan interest but you do not discover it until the deal has been signed. Using a home loan EMI calculator helps you select a home loan deal that favours your pocket. We recommend that you select a long-term home loan if you want a lower EMI amount. But if you have the means, then move on with a short-term home loan. We advise that you only select the short-term loan offer if you have the means to complete the high home loan EMI payments that will follow.
Sometimes, the burden of high home loan EMI payments may seem heavy. To lessen the heat of loan repayment, we offer some ways to reduce this burden.
Ways to Reduce the Burden of Paying Higher Home Loan EMIs
To lessen the burden of paying higher home loan EMIs, there are a few methods you can use to achieve a reduction in what you pay monthly. Remember that lower EMI payments allow you to save money for future purposes. Here are ways to lessen your home loan EMI burden.
* We advise that you consider switching your interest pricing system. The lending institution’s lending rates sometimes change. An increase in that rate will cause an increase in the amount you pay as home loan EMIs during your home loan repayment process. To forestall this, simply call on your lender, whether a bank or Non-Banking Financial Company (NBFC), for a move between interest pricing systems. Note that they may charge you a small fee, but that is little when compared to the low home loan EMI payments you stand to enjoy.
* Apply for a home loan balance transfer. Several banks and affiliate financial institutions may offer home loan deals with varying home loan interest rates. You may just be suffering from a high home loan EMI burden because your lender’s housing loan interest rates are unfriendly. You are allowed to seek a move to a different lender whose services you prefer. We recommend that you run a background check on your lender before considering this option. Once you learn that their housing interest rates are not good enough, apply for a balance transfer switch. It only costs a token but saves you a lot more. A quick tip: Ensure that you have paid off your home loan EMIs for up to 12 months before applying for a home loan balance transfer.
* We recommend that you make a partial loan prepayment to adjust the current EMIs. If you have a floating rate home loan, your chances of making partial prepayment to lower your home loan EMIs are higher than those on a fixed rate home loan. Every prepayment you make affects the duration of your loan. Making partial prepayments helps lower the remaining loan principal amount. We also advise that you negotiate with your lenders to lower your home loan EMIs upon making a significant prepayment towards your home loan.
* Seek an extension on your home loan. If the burden of the home loan EMIs has grown beyond your control, then you can extend your home loan's duration. Doing this will afford you some space to repay the loan and set aside some money for personal savings. It helps reduce your home loan EMIs significantly.
Now that you know the ways to reduce the burden of your home loan EMI payments, wouldn't you like a lender that offers the lowest home loan interest rates? Check out Bajaj Finserv's home loan offers today.
(Note: The article is written by the Brand Desk.)
Posted By: Aalok Sensharma