According to reports, India witnessed a massive growth in the real estate sector, attaining around 6.26-billion-dollar investment. Especially with the PMAY scheme and several offers, people are now investing in housing properties more than before. Also, a slight shift in interest rates and these schemes have made it a perfect time to opt for a home loan and execute your long-awaited plans.
However, the challenging part arises while maintaining monthly instalments as those create an additional liability. Therefore, certain factors should be put in order before you go through the home loan EMI process so that it does not affect your regular lifestyle.
Top suggestions for managing home loan instalments
Managing the equated monthly instalment (EMI) requires efficient management so that you do not get burdened with penalty charges. With attractive schemes announced by the Government, people are getting subsidies on home loan interest rates, and that makes it even easier to manage these monthly instalments. However, one still needs to go through extensive research and calculate EMIs before taking a home loan to remain consistent.
Here are a few tips to keep consistency when it comes to paying your home loan EMI-
- Pay a larger sum instead of smaller EMIs
Initially, paying high monthly instalments can seem challenging since a major chunk of money from your income will be deducted each month. However, this is the best way to get rid of your financial liabilities since the loan tenure gets reduced by paying high home loan EMIs. Furthermore, the total interest against your home loan also goes down by going for this option, and you do not feel burdened whenever there is a shortage of funds.
- Make lump sum payments
After investing a bulk amount in your housing property, you might look for ways to reduce the home loan tenure and EMI since the goal is to reduce your financial burden. Another effective way to bring down the loan tenure is to make lump sum payments, especially during initial phases, when your principal amount is high.
- Look for lower interest rates
Even though several schemes and offers in home loans have made it relatively easier for borrowers to consistently pay monthly instalments, one also needs to look for lower interest rates. Several financial institutions revise home loan interest rates throughout the year, and individuals need to be attentive to choose the best rate among them. Using a home loan EMI calculator, you can easily check monthly instalment amounts whenever there is a slight shift in interest rates.
- Manage your expenses based on your income
For a borrower to be consistent when it comes to paying a home loan EMI, assessing the total income should be the first step. This allows one to check all the monthly expenses he or she has and whether it will be possible to bear these additional liabilities. Apart from the basic amount, borrowers are also charged for processing fees and other additional charged; therefore, all these factors should be looked upon beforehand.
- Avoid missing loan payments
One of the major issues borrowers face is when they miss their loan payments. It not only comes with penalty charges but also affects your credit score, which is an essential factor to be eligible for future loans. It also increases your loan tenure and as a result, getting rid of financial burden becomes more difficult.
An effective solution to this problem is to manage all the expenses at the beginning of each month and strictly follow a budget. Additionally, individuals need to be aware of the home loan foreclosure procedure and its process in case they decide to prepay the debt and save paying any home loan interest.
In order to make certain long-term goals successful, one needs to make investments, even if it comes with additional liabilities. Fortunately, with convenient schemes and attractive offers, one can easily get affordable home loan EMI and implement their plans.
Also, top financial institutions and NBFCs provide pre-approved offers to make the process of availing a loan less time-consuming. These offers are available on several financial products such as home loan, loan against property, etc. You can easily check your pre-approved offers by sharing basic information like name and contact number.
It is advised to opt for a loan amount on the basis of your lifestyle and regular expenses. This way, it is easy to evaluate whether you will be able to maintain the home loan EMIs every month. Even a home loan calculator comes as a useful tool before taking a large amount as it helps to assess the monthly instalments you will be paying, and the rest can be managed by following these above mentioned tips.
