Home loans are big loans which involve huge amounts and long tenures. When availing a Home Loan Repayments mistakes. it is always advised to ensure that the repayment of the loan would be affordable on your pockets. That is why there is an online home loan EMI calculator which help you find the most affordable EMI before you apply for the loan. However, even when you are sure about the affordability of repayments, there are times when paying the repayment, becomes a burden. If you face a financial crisis, your Home Loan Repayments can prove to be a struggle. However, there are some tips which help you manage your repayments even when you are in a tight financial spot. Here they are –
Request for extension of the loan tenure
You can request the lender to extend the repayment tenure of the home loan. An increased tenure would bring down the home loan EMI and you would be able to pay the loan easily. Lenders also allow such negotiations when the borrower is struggling with the loan. It is in the lender’s interest too as it ensures repayment of the loan. Moreover, as the tenure is increased, the lender can also earn a higher interest.
Use your savings to repay the loan
When you get a bonus in your salary or earn a surplus profit from your business, direct these funds to prepay your home loan. Part prepayment of home loan is allowed by every lender. Through prepayment, you can get rid of your debt easily and would also save on the interest payment.
Try increasing the EMIs when your income increases
If your income increases over the years you should also increase the Home Loan Repayments EMI. Increasing the EMI would help you pay off the loan quickly and it would also save the interest outgo. As your loan burden would reduce, in the case of financial contingencies the loan would not prove to be unaffordable.
Go for balance transfer
If you find a lower home loan interest rate offered by another lender you can transfer the balance of your home loan to that lender. Home loan balance transfer is available with almost every lender and it helps in saving the interest payments. As the interest component is reduced, the home loan EMI becomes more affordable and easier to pay.
Cut down on your expenses
Shuffling your monthly budget is also an important tip if you are struggling with the repayment of your home loan. Scrutinize your expenses and cut down on expenses which are unnecessary. As your expenses are reduced you get disposable funds in your hand which can be used to pay your home loan EMI.
Get rid of other debts
If you have other loans their EMIs must be eating into your income. So, you should get rid of multiple debts to free up your income which can then be used to pay the EMIs of your Home Loan Repayments.
Missing home loan repayments not only hamper your credit score but also attract higher costs in the form of interests and penalties. So, use these tips to make it easier to pay off your home loan EMIs.
Additional Reading:- How Can You Choose Best Home Loan Rates?