Lower Home Loan EMIs
You can surely reduce your home loan EMIs by analyzing your financial condition, performing calculations and seeking sufficient guidance. You have several ways of reducing home loan EMIs by lowering the interest rates, prepayments and balance transfer to another bank.
A person having a home loan always thinks of the miraculous ways to reduce the burden. How can I reduce the burden? This becomes your recurring thought in the mind. Well, banks do have certain schemes but these are not promoted well. You must visit your bank or call the officer once to be aware about these schemes.
Some borrowers even think of increasing their EMIs and reduce the tenure. But now, we would be discussion of reducing your home loan EMIs and not repaying it soon. Let us study the following methods of reducing your home loan EMIs.
Never get dazzled by the wordings ‘Low EMIs’ – Look before you leap
If you are receiving calls from bank’s salesmen offering you with low EMIs loans, then always be alert and careful. It must be noted that if you are paying low EMIs for a considerable longer duration, then you are paying more interest amounts. Hence, you must always clarify with the interest component and the principal amount. You do not expect to waste lot of money with the tempting tagline of Low EMIs.
Shifting your loans to other bank
This is also known as balance transfer. This is an effective method of reducing your home loan EMIs. If you feel that your purse is not permitting you to pay the current EMIs, then you can go for these balance transfer. For that, a detailed research of the banks and their existing interest rates is essential. Search and research for the perfect bank. Then, follow their process systematically but do not forget to discuss with the bank about the interest rate component. If the bank is asking you to pay your affordable and desirable EMI, then go ahead!
What if – interest gets lowered and EMI remains the same
Let us remove the low EMI motive from our mind. Now, let us target that we must pay lower interest component to the bank. You can approach the bank with the lowest interest rate. But apply a trick. Do not reduce the EMI. In this scenario, you are brilliantly covering the principal amount component along with less interest component.
You win half the battle here. Whenever the bank offers you to pay lower EMI, and then do the math. You must not increase the duration and pay higher interest. In fact, you must concentrate on covering the principal amount component.
Making part-payments will help in reduction of EMIs
Whenever you get your accumulated savings or funds, you should make part-payment of your home loan amounts. With this, even banks may come to you with low EMI offers. You should be careful with the prepayment penalties. It is charged by some of the Indian banks.
Conclusively, you can skillfully reduce the home loan EMIs in several ways. But do the calculations carefully, seek appropriate guidance and take proper action.
Recommended Read :
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