The equated monthly instalment and timely repayment are more crucial than choosing a housing loan.
The Reserve Bank of India hiked the repo rate on February 8th, 2023, which led to increasing the home loan EMIs, personal loans and more. Given the tremendous demand for luxury or cheap luxury properties in the real estate market today and the consequent rise in property prices, obtaining a housing loan is relatively frequent in India. Obtaining a loan is by no means difficult if a down payment is prepared and the eligibility requirements are satisfied.
However, managing the equated monthly instalment (EMI) and making on-time repayments are more crucial than choosing a house loan. Skipping an EMI is a dangerous move because it might result in fines and damage to your credit report. There are certain ways to effectively manage money for your loan EMI.
Comprehensive research:
There are several options available in the market with different interest rates, eligibility and more. To make a decision regarding home loans do comparative research and check the pros and cons of each option before finalising.
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Prioritize payment of loans:
Avoid late payments on home loans because the penalty will add more liabilities to your debt. In case you are facing issues with making the payment, inform the lending bank so that they can provide you with possible choices.
Maintain a higher EMI amount:
It is always recommended to keep a higher EMI amount so that you can pay your dues as soon as possible and improve your equity to be able to increase your EMI amount. Always evaluate your budget, and finances before confirming your EMI amount.
(Also Read: Provident Fund: Want to earn maximum interest on your PF balance? Know about Voluntary PF scheme)
Use EMI calculators:
Numerous banks that provide home loans also have an essential function, their EMI calculator, which aids in estimating the monthly payments you can make on your home loan based on your income, expenses, and a number of other factors. Additionally, it offers precise information about EMI payments, interest rates, and cash down payments for loans. Utilizing this useful tool is advised because all of this makes selecting the best home loan programme easier.
Switch lenders if required:
It's likely that you'll find the cost of servicing your mortgage to be too expensive at some point. As different lenders drop their rates at different times, it is advised that you hunt for a lender that offers a lower rate at this period and switch.
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