Best Ways For Lower Home Loan EMI: Everyone wants to buy their dream house, but to buy a house we often have to take a home loan. In such a situation, after purchasing the house, we remain stressed about paying its EMI for a long time. By using some smart and best methods, you can reduce the time of home loan installments and also the interest charged on them. Today we are going to give you information about some such best methods which are considered very helpful in working out EMI on loan.
Why are home loans becoming expensive?
In fact, to bring inflation under control, the Reserve Bank of India keeps changing the repo rate. Let us tell you that increasing the repo rate has a direct impact on the loan. Due to this, one has to pay more premiums, and the loan also becomes expensive. Due to the increase in repo rate, interest charged on loans also increases.
What are the problems?
Many times, people's CIBIL score is also affected due to delays in paying the installment. If this happens, banks charge penal interest as a penalty, which is one or two percent of the EMI. Not only this, if you are late in paying the loan then calls from the recovery agent also start coming continuously. If you do not want to study in such trouble or are thinking of getting out of it, then the EMI burden can be reduced by using some easy methods.
Try these methods for relief in loan and EMI
Transferring the loan can be a better option for you. Yes, many times it happens that the rate of the bank from which we take home loans is much higher than that of other banks. In such a situation, you can get your home loan transferred to another bank whose rates are lower. If you transfer the loan at a 0.8% lower interest rate, then your interest rate along with EMI will also be lower than before. The maximum benefits of loan transfer are expected in the initial years of taking a home loan.
We have a lot of expenses every month and our salary is limited. In such a situation, many times the home loan consumes a large part of our salary and it becomes difficult to manage the money throughout the month. If you are also struggling with such a problem, then you can reduce the installment by increasing the tenure of the home loan. This will reduce the monthly EMI burden on your salary, but you will have to pay interest for a long time.
If your repayment record is correct, you can talk to the bank and get an extra discount on your interest rate. Yes, banks sometimes give relief in interest rates to consumers with better repayment track records and high CIBIL scores. If you have maintained a good repayment record, you can also get a discount on the home loan.
If you have money, you can repay some of the loan amount at once, this will reduce the time of a home loan and you will also have to pay interest. To do this you have to talk to the bank. In this way, the home loan tenure can be reduced by refinancing. Prepayment significantly reduces your loan tenure in the initial years. It is also very helpful in reducing the EMI amount of the loan.
