Smart Tips To Reduce Your Home Loan Burden

With the rise in the real estate prices, it is difficult for most of the Indian to buy a house on one's savings. However, availing a home loan is the only option for most to achieve this goal. The large-ticket size and long tenure contribute to higher EMI, leaving little space for other financial purposes. Besides, any upward home loan interest rates or EMI can deteriorate your finances.

Here are some of the ways how a new borrower or an existing borrower can reduce the home loan burden:

1. Compare interest rates online

In today's world, one of the best ways to check home loan interest rates is to go online. You can check for the various websites to get a summarised view of interest rates, fees, and other charges included by various lenders. Therefore, it is essential to do proper research before availing a home loan to ensure you get the best deal.

There are also few banks and housing finance companies that provide the best interest rates. Shubham Housing Finance is one of them, which offers home loans to customers at a competitive interest rate. Based on the distinctive requirements of the customers, Shubham offers tailored home loan solutions to all.

2. Opt for longer repayment tenure of your loan

Before opting a home loan one should calculate the tenure and corresponding charges accessible to you. Therefore, it is recommended to choose the longer tenure because the longer the tenure, the lower will be the EMI payable every month. So you should choose the home loan tenure carefully as this impacts the amount of EMI you will be required to pay every month.

At Shubham Housing Finance, you can get a clear understanding of the amount that you need to pay towards your EMI. They also help their customers make an informed decision about the monthly outflow towards the home loan.

3. Make a bigger down payment

A down payment is the upfront payment the borrower makes to the financial institution. In India, lenders can provide 80% of the property value as a home loan, while the borrower has to arrange the rest 20%.

Thus, if you contribute a higher amount as a down payment, the lower will be your Loan to Value ratio, which in turn enhances the loan eligibility and also increases the chances of loan approval quickly. But remember while trying to make a higher down payment, don't overstretch your finances as it may hinder the achievement of other important goals.

4. Make home loan prepayment

If you have disposable cash, then you can use the amount to prepay 5 - 10% as the principal amount. As prepaying a minimum percentage of your loan would significantly reduce the total loan outstanding, thereby lower your EMI payments. You can request the lender not to lessen the repayment tenure but instead reduce your EMI amount.

Banks generally charge a prepayment penalty fee, but with Shubham Housing Finance you don't have to pay any hidden charges.

We believe, now you have a proper understanding of reducing the burden of your home loan. If you still have any doubts, you can always write to us. We have got your back!