COVID Crisis: The Four Best Ways to Reduce Your Home Loan EMI Payment

With the Covid-19 induced lockdown affecting cash flows, making regular loan payments has become challenging for many people. For those who have taken home loans where the EMIs are high, this challenge becomes tougher. As a borrower, if you are looking for ways to make your home loans easy by reducing your EMI payments, follow the tips given below.

 

Change your lender:-

It is incredibly easy to shift lenders, and all you need to do is approach your current and new lenders and request a swap of the loan balance.

While taking a loan, choose a lender, who provides a low home loan interest rate. If you have now found a new lender willing to pay considerably lower interest rates, consider changing your mid-credit loan. And if you can't find a lender with a lower interest rate on home loans, you can try one willing to extend your term on repayments. Before you change lenders, use an online home loan EMI calculator to know precisely by how much your EMIs can go down.

Pre-payments help:-

Previously loan pre-payments had come with lots of fees. However, most NBFCs & HFCs such as Shubham Housing Finance and many other housing finance companies don't take pre-payment, enabling borrowers to repay substantial amounts of their home loans before the tenure ends. If you want to lower your EMIs and the amount of interest paid, prepay online, or offline your home loan at the beginning of your repayment tenure.

Make a bigger down payment:-

A higher down payment reduces the amount of the principal loan, which means that the interest payable and the EMI charged also decrease automatically. If you have some extra savings, you can use while apply for a home loan to make a substantial down payment.

Choose longer tenures:-

If no other option works for you, extend the tenure of your home loan. With a longer-term on loan repayment, you'll have to pay more interest, but your EMIs will come down dramatically. Negotiate with your lender to prolong your term on repayments. Determine the exact amount of interest you will pay using an EMI home loan calculator before you make this decision.

 

Before selecting a lender, read the home loan eligibility requirements for tenure extension, refinancing, or pre-payment. Using clever financial planning and pounce on opportunities for EMI reduction whenever possible.

  

However, be wary about EMI reduction methods which require higher interest payments on home loans. You can easily apply for a home loan with reduced housing loan EMI burden with proper preparation, and keep your savings secure for emergencies.