Must know important tips to lower the burden of home loan EMIs - Loan Trivia


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Monday 8 November 2021

Must know important tips to lower the burden of home loan EMIs

reduce housing loan EMI
Availing a high-value credit like a home loan obligates borrowers into a long-term repayment structure. Therefore, it is essential to compare different lenders and their policies before making an application.

This would help in reduce home loan EMI burden and allow borrowers to maximise savings. 

Here are some additional steps to bring down the repayment obligation efficiently.

What are the methods of reducing home loan Emi burden?

  1. Make prepayments

A great way to deal with hefty EMIs is to make prepayments. Individuals can use their additional earnings to make the payment. This reduces the outstanding balance and simultaneously brings down the EMI obligations on a home loan. 

In this regard, using a home loan prepayment calculator would be a smarter choice.  One can evaluate the savings made from the entire process and proceed accordingly.

  1. Compare lenders

It is always wiser to calculate EMIs levied by different lenders offering home loan in India. This would help in making the right borrowing choice. Moreover, individuals can easily receive better terms and customised facilities. They can also convince a lender to levy a nominal interest rate with high eligibility. 

  1. Making a bigger down payment

Making a sizeable down payment also helps in reducing the principal amount. This naturally brings down the monthly instalment burden. It is important to know that higher down payments lessen home loan interest outgo.

  1. Refinancing

Transferring the outstanding balance to a lender levying nominal rates better than the current home loan interest rates also helps in reducing the EMI burden. However, individuals should opt for this option during the initial tenor. This will help in making significant savings on repayment. 

These are some of the proven methods that help in bringing down home loan EMI burden efficiently.

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