If you are planning to apply for a home loan then, you are one of the many individuals who are trying to make the most of the available opportunity to own an asset. But, you should also be aware of the fact that your home loan will have to be repaid in Equated Monthly Installments (EMIs) over its tenure. This, could potentially cause a huge dent on your financial goals and objectives. Hence, you must plan your EMIs efficiently in order to ensure that they do not become a financial burden.
A home loan can definitely come in handy if you do not have enough savings to buy your own home. However, a home loan should only be taken once you have considered some important factors such as: Repayment Capacity, Existing Expenditure, Loan Tenure, Interest Rate etc. Post this analysis, it is highly recommended that you calculate your EMI outflow in advance before applying for a home loan. This can help you gauge your current and future financial position and enable you to plan your finances better.
Tips to plan your home loan EMI
The stability of your income or job is one of the important factors when it comes to applying for a home loan. For a bank / financial institution, a stable income can assure them of an individual’s repayment capacity and subsequently lead to quicker approvals. And, for an individual, it means efficient EMI planning and lesser financial burden. Hence, only apply for a Bajaj Finserv home loan when you are sure about the stability of your job and income.
Cut down the expenses
From an expense perspective, it is critical that you consider your current, as well as, future expenditures before applying for a home loan. Going through this exercise will help you:
1) Maintain your current financial goals and savings schedule
2) Keep some finances parked to deal with any unforeseen emergencies.
Your age is an important factor to consider when applying for a home loan. This is primarily because your responsibilities increase with age and you will need to pay EMIs for a longer tenure to completely pay-off your home loan. On the other hand, when applying for a loan at a younger age, there is an option of paying higher EMIs and complete your loan quickly due to yearly income increments as well as less financial responsibilities.
The interest rate that you pay on your home loan has a direct impact on your monthly EMIs as well as the total amount that you end up repaying to the bank or the financial institution. Higher interest, higher EMIs. Hence, it is highly recommended that you compare the interest rates offered by different lenders before applying for a home loan. You can also opt for a home loan balance transfer facility in order to save cost on your existing home loan.
Keep these tips in mind when applying for a home loan and always consider your current financial condition before you agree for an EMI amount. Ensure that you never default in the payment of EMI over the tenure of the loan.
Now that you know how to manage your EMIs, head over to Finserv MARKETS and fulfill your dream of owning a house by availing a Bajaj Finserv Home Loan with us, today!
You can also read about tips for making home loan down payment.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”