With the property prices increasing day by day, it has become extremely expensive to buy a home of your own. This is especially true for metro cities, where property prices are skyrocketing. In such a scenario, most people resort to availing a home loan for buying a home.
Home loans are secured loans that require a collateral against them. Most loan providers have a set basic eligibility criteria for taking a home loan, which makes the entire ‘loan availing process’, less of a hassle. However, repaying the loan is another matter. The interest rates on home loans are considerably higher than those for unsecured loans as there is collateral involved. Moreover, the loan tenure for such type of loans also extends for long as compared to personal loans. As a result, most borrowers often feel the burden of paying the home loan EMIs (Equated Monthly Installments). If you are someone who is planning to take a home loan but are afraid of the hefty repayment installments, here are some quick tips that can help reduce your home loan EMI burden-
Increase your loan tenure
Opt for Prepayment
Compare the interest rates
Switch to MCLR
1.Increase your loan tenure
When you opt for a maximum loan tenure, the repayment amount gets distributed over the long length of the tenure. This automatically reduces the amount that needs to be paid as EMI every month. You can always use a home loan EMI calculator to determine your loan tenure and the subsequent difference in the EMI amount.
2.Opt for Prepayment
Some loan providers offer the facility of prepayment on your home loan. Prepayment facility allows the borrower to make early payments on his/her EMIs. Thus, in case you come across any extra funds or a big bonus, you can direct that cash to prepay your loan. This would bring down the repayment amount, while subsequently reducing your future EMIs. A Hybrid Flexi Personal Loan on Finserv MARKETS comes with benefits like flexible repayment tenure, flexible part payments and unlimited withdrawals.
3.Compare the home loan interest rates
Before applying for a home loan, it is important that you compare the home loan interest rates offered by different loan providers in the market. You can check which loan provider offers the lowest EMI home loan and whether the other features and benefits offered on the said home loan suits your financial needs or not. Bajaj Finserv personal loan on Finserv MARKETS offers competitive rate of interest for personal loan and other benefits like instant approval, flexible repayment tenures and minimal documentation.
4.Switch to MCLR
On 1st April 2016, the Marginal Cost of Fund based Lending rate (MCLR) was introduced to replace the earlier base rate system. This new system dictates for banks and financial providers to adhere to the repo rates stated by the RBI. No loan provider can charge a higher interest rate than the dictated terms. Thus, in case you had availed a home loan before 1st April 2016 and are paying higher interest rates, you can switch to MCLR and lower your EMI amount.
Loan refinancing allows you to take a new loan to pay off the dues of your existing loans. The basic concept behind loan refinancing is to enjoy affordable interest rates on your new loan. The new loan can be availed at lower interest rates, making the EMI payments much more affordable than earlier.
You can easily bring down the EMIs on your home loan by implementing some of the tips mentioned above. A lower EMI can considerably reduce the strain on your monthly budget and help you manage your finances better.
For affordable EMI options on your home loans, visit us at Finserv MARKETS today! The Bajaj Finserv Home Loans offer complementary value-added services at minimal documentation. Moreover, our flexible home loan part-prepayment options make repayment of loan extremely easy. Apply now and make the dream of buying your own home a reality! For more details, get in touch with our representatives at Finserv MARKETS today!
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere”