Not able to pay the home loan EMI to Finance Company? Now Here what to Do

The biggest financial decision one takes in his/her life is of buying a house as it involves a significant chunk of one's savings and investments. If you are buying your home on EMIs, then it is important to gather sufficient funds for it.

Even if you buy it on EMI, you'll still need to pay some down payment. There could be several reasons why one cannot pay the EMIs; it could be due to sudden job loss, reduced savings, major medical expense etc.

But if you fail to pay EMI for six months, then the bank can take over your house. But this is not the case with Shubham Housing Development Finance Company as they allow you some time to repay the money; also, the representatives will get in touch with you to know why you are skipping to pay back your loan on time.

Here are four options to help you pay back your EMI home loan in difficult times.

1. Utilize your emergency fund

Income shortages are the biggest obstacle to repaying your home loan. If you lose your job or other sources of income savings dry up, you might face this problem. Hence, maintaining an emergency fund is advisable either by keeping the amount in a savings account or in some debt instrument such as fixed deposits.

To avoid such situations, you should always save a bigger amount to your emergency fund savings so that it can help you pay your EMIs and keep you from defaulting.

2. Always prefer to take loan insurance

There are various loan insurance plans provided by different lenders that can cover your EMIs for a short period. You can consider buying such a plan along with your home loan.

3. Raising funds through the disposal of assets

If your income and savings have been exhausted and you are unable to repay the loan, then you can look at other options to raise some cash. You can dispose of your assets like gold, a car that now seems like a luxury, electronics that you don't need, or withdrawn from long-term investments like the Public Provident Fund (PPF).

4. Contact your lender to find a solution

You can discuss the matter with your lender if you are unable to pay EMIs. It would help if you gave them a genuine reason for not paying the loan, such as job loss, a severe medical condition, or short-term difficulty. You can try to convince your lender to understand your challenges and convince them that you will be able to resume re-payment of your loan soon.

The best solution would be not to get first into this situation. But once you're in it, remember panicking won't take you anywhere. At Shubham, we take care of our customers first. If you are facing problems, do contact us or speak to us, we are there for you.