Want to reduce the burden of home loan EMI? These tips will work for you

Home Loan Payment: It is everyone’s dream to have their own house. If you do not have enough money to buy a house, then with the help of home loan, you can fulfill your dream. Banks or non-banking finance companies can give you long term loans. In return, you pay a fixed amount in the form of monthly installments to the bank or NBFC for a specified period (10, 20 or 30 years), in which you repay the principal amount and interest of the loan. This is home loan. However, repaying the home loan installment is a big responsibility. Today we will tell you about some such tips, with the help of which you will be able to lighten your EMI burden.

partial prepayment

  • You can make a partial prepayment during your tenure to cover the EMI.
  • If you make a partial prepayment, it helps to disburse a part of the total loan amount and this will reduce the EMI.
  • Simple methods like saving extra income can help in making prepayments.

tenure

  • You can extend your tenure to reduce the EMI burden.
  • If someone has a big loan then this is the best way to get some relief from it.

Fixed and floating rates

  • Lenders charge around 1-2% more for fixed rate home loans.
  • Therefore, taking a floating rate loan from the very beginning is a good option.
  • If you have taken a fixed rate loan in the past, you can switch to floating rates in between, but for this it is necessary that your lender gives permission.
  • If your lender has this provision, keep a close eye on the floating rates and make changes based on it.

loan transfer

  • Most of the lenders and financial institutions give the option to the borrowers to transfer their loan to other banks or lenders.
  • After getting the loan amount, one should keep comparing loan offers from different lenders.
  • It is important that you keep checking other interest rates during the tenure and transfer your loan to that lender accordingly.