5 Pro-tips for Better Management of Home Loan EMIs

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So, your bank has just sanctioned your home loan, and you have crossed the first-ever hurdle. But your excitement should not negatively impact your future decision. Since taking a loan means pressurizing yourself with financial commitment, you must select the most suitable lender to own your dream home. If you are already accustomed to managing huge debt and timely payments, paying Equated Monthly Installment seems easier.

Your life decision can be obstructed by uncertainties and face financial stress over time. Buying a house is a long-term financial responsibility that can even drain your emergency funds in extremities. Therefore, it is vital to practice money management to make your home-buying experience enjoyable.

  1. Utilize the Festival Bonus in Prepaying Your Loan

You should target lump sum partial payments in the early phases to bring down your loan tenure and outstanding. Before you decide on partial payments, it is best to know the banks’ terms and conditions to prevent facing any unwanted penalties. In unexpected gains, check with your lender and put the amount to use for part payments.

  • Repay the Instalments Higher Than the Usual

If you want to save on your interest payments, opt for higher EMI. Since home loans stretch for about 20 to 30 years, your interest might come out much more than the standard amount. Taking the burden of additional EMI payments might be challenging, but it won’t harm you in the long run. Therefore, use the online EMI calculator to compare the monthly accountability and end your repayment journey long before the ending period.

  • Emphasize More Down Payment

Keep yourself prepared for associated expenses that come with availing loan like title deed, down payment, home registration, interior designing, etc. Embrace the popular thumb rule of financing property and lessen the loan burden to the minimum. Financial institutions usually offer 80 percent credit of the total property cost.

The rest you have to pay as a down payment. The more you make the down payment, the lesser it will put the burden on your shoulder. Therefore, maintain a savings account dedicated to only the loan and EMI expenses.

  • Increase Your Overall Earnings to Meet Your Financial Commitments Easily

These days, cost cutting doesn’t only help you out in managing your finances. It is worthwhile to take financial advice from credible loan agents to distribute the financial commitments among your family members and opt for better payment plans.

Upskill yourself and expand your income by freelancing, tutoring, start-ups,or simply making YouTube videos. Even if your partner takes charge of paying internet bills, domestic help can help you out paying your housing loan like a pro.

  • Never Delve Into Contingency Funds

Take an emergency fund as your last resort. Don’t ever dare to dig into this fund to help you out in paying EMIs. Family emergencies can emerge at any time, which immediately needs finances. Therefore, you must prepare a separate fund for managing such extremities. Manage your home loan in the best possible way to not make them impact other financial obligations.

You don’t have to wait long to avail housing finance since many companies are ready to offer you the best loan deals. Take an appropriate financial decision to get the maximum advantage in the future.