5 Best Tips to Manage Your Home Loan EMIs

1. Prepare an Investment Plan Before Getting the Home Loan

An investment plan is the backbone of making any kind of investment. Without a plan like this, you may end up buying a house that is way beyond what you can truly afford. So, draw up a plan and find out how much EMI you can comfortably pay each month. This can help you take a loan accordingly.

 

For instance, say you can afford to pay an EMI of up to Rs. 30,000 per month, and if you need to borrow Rs. 30 Lakhs for buying your dream home. So, if your banker offers you a home loan interest rate of 8% per annum, you need to choose a tenure of 14 years or more. A home loan EMI calculator can help you out here. 

2. Choose a Home Loan That Offers Affordable Interest Rates

This is another smart way to pay home loan EMIs that are easy on your finances. It goes without saying that the lower the interest rate on a home loan is, the more affordable the EMIs will be. So, shop around for interest rates and compare offers from different lenders before you decide on a lender. 

 

If you have a long standing relationship with your banker and if you have a good credit score, you can use this to your advantage and negotiate a lower interest rate too. This way, you can make your home loan more affordable. 

3. Look for Flexi Hybrid Home Loans

A flexi hybrid home loan can also help you plan your home loan EMIs according to your income. In these loans, you only pay the interest component on your loan as the EMI for the first few years. Then, after a while, the EMIs increase slightly to accommodate the interest and the principal components. 

 

You can use this kind of a loan to align your EMIs with your income. This is because initially, the EMIs will be lower. And a few years later, as your income increases, your EMIs also go up slightly. But your higher earnings will ensure that you can afford the loan repayment easily. 

4. Make Prepayments to Cut Down on Your EMI Burden

A home loan is a long-term commitment. The repayment tenure can go up to 30 years or so. Over this period, you may earn a bonus at work, or you may receive a lump sum amount from another source. 

 

You can use this sum to prepay a part of your home loan online. This reduces the amount of principal remaining to be repaid, and in turn, brings your home loan EMIs down. If you already availed a loan without planning your home loan EMIs, this tip can help you reduce the EMI burden on your income.

5. Opt for Home Loan Balance Transfer at Better Interest Rates

A home loan balance transfer is the procedure of transferring the outstanding home loan principal from your current lending bank to a new bank. Typically, this is done if the new lender is offering you lower interest rates or better terms and conditions. 

 

By transferring your home loan to a new lender who offers lower interest rates, your home loan EMIs become more affordable. You can use the money saved in the process to partly prepay your loan. Needless to say, this is one of the many smart ways to pay home loan EMIs off sooner than later.

 

As you can see, these techniques can answer your question about how to plan your home loan EMIs correctly. By adopting some or all of these measures, you can ensure that your home loan does not become a financial burden. 

 

If you want to borrow money at affordable interest rates or avail the home loan balance transfer facility, you can check out the options on Bajaj Markets. With home loans starting at interest rates as low as 6.99%, managing your EMIs gets much easier.