5 Smart Ways To Manage Your Home Loan

Are you planning to apply for a home loan or already paying a home loan EMI? 

Well, if your answer is yes, then you need to evaluate your ability to repay the debt carefully.

A home loan is probably the most significant financial commitment, and you need to know to manage it well.

Though it is a smart way of converting your wish into reality, without digging much into your savings, when it comes to paying the home loan EMI, it isn't always an easy task.

Here are five ways that can help you manage your monthly EMI efficiently.

1. Pay a higher EMI if you can: 

Paying a high EMI can help you manage your home loan better. You might be thinking, how is it possible for you? 

Opting for a high monthly EMI reduces not only the loan tenure but also reduces your financial burden. So paying off home soon is the best way out to make way for other crucial things in life.

2. Manage your funds properly: 

While dealing with loans and investments, compare your monthly payments with monthly returns. For instance, if you find that certain investments are not giving enough returns, it is better to close those and clear the funds towards the EMIs of your home loans. 

3. Partial pre-payment:

A partial pre-payment lets you reduce the tenure of your existing home loan, EMI, or both as per your financial requirements. It will also provide you with a clear and better understanding of the savings you will have.

You could use those incomes to prepay your Home Loan. For instance, if you got a promotion recently or one of your Fixed Deposit just matured, you could use those funds and prepay your loan to save yourself from loan obligation and also reduce the loan tenure at the same time. 

4. Get the math right:

Do you know about the being of loan calculators? Don't worry! We are here to help you. 

You can check the monthly payments of your loan with the help of an online EMI calculator. Shubham Housing Finance helps you to understand the loan more efficiently and conveniently.

These calculators can help you understand what loan amount you can need to sustain. The best part? They are simple, convenient, and easy to operate. 

Calculating the EMI in advance helps to know the amount of money to be kept aside every month, helping you to manage your finances better.

What's better than getting to know everything about your monthly loan payments, cash down payments, and interest rate?

Since Home Loan EMIs are a critical part of your monthly budget, you essential be able to balance all your other financial commitments as well.

5. Do not miss your monthly payments:

Skipping or missing your monthly instalments will not only pull out the surplus cash from your fixed budget but also affect your credit score. Always ensure that you don't get the tag as the Special Mentioned Account (SMA). You must assess your appetite for loans and not take a new one till you have repaid the older ones.

If you have any more queries, do let us know in the comment section below.