Here Are 4 Smart Ways To Manage Your Home Loan EMI Effectively
If you recently got your home loan sanctioned then you must be worried about how to manage the home loan effectively. Managing a home loan requires nothing but some discipline and these four plans. These tips should be followed if you wish to pay the loan quickly and without any trouble.
Pay your EMIs on time
If someone fails to pay the EMIs of the home loan on monthly basis then this problem may attract penalties which eventually leads to an increase in interest rates. So, before taking a home loan check that the size of the EMI isn’t disturbing your monthly budget.
Try and fix a date to pay the EMI near your salary date so that any delay is avoided. Paying the EMI on time has its own benefits, for example, it increases your credit worthiness and the decreased burden is a plus point. But, there is a major possibility that someone doesn’t have a regular source of income to pay the EMI every month regularly. In this case, a fund with an amount of at least three-month EMI should be maintained.
Prepayment of the loan
Let’s suppose, you received bonus money or incentive in your job then you should use that money to prepay a part of your home loan. This option subsequently reduces the burden on the person who has, for example, a large amount of 50 lakh and at least 20 more years of loan left to pay.
Increase your monthly EMI as your income increases
The option to pay a large amount of home loan by opting for a longer tenure which is meant to reduce the burden. But there is a possible way to pay off the home loan in shorter period time and that is possible if you increase the amount of EMI paid when your salary increases.
Rather than paying the same amount of money for a longer period of time, increase the time amount of money and pay it off quickly. But before doing this check your bank’s policy if there are any penalties involved.
Change the bank if needed
When the home loan that you have taken from the existing bank doesn’t seem to be providing you with better offers then you can switch your home to some other bank.
Banks tend to change the rates at different intervals but before switching your home loan to another bank, check the cost of switching if any because it may entail paying for the processing fee, inspection fee, etc. If it still benefits you then make your move to switch the banks.