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Thursday, 17 May 2018

3 Ways to Manage Your Home Loan EMI Better

Are you an existing Home Loan subscriber or planning to take one soon? Whatever is the answer, in both cases you need to have a viable repayment strategy in place. The following strategy will help you in two ways: make the loan repayment process easier and avoid any EMI defaults.

Moving further, once your Home Loan has been approved, the next task is to efficiently manage your monthly EMIs. Owing to that, below are five tips you can follow to manage your Home Loan EMI efficiently.


Make EMIs Your Priority

Paying EMIs on time boosts your CIBIL score and improves your creditworthiness. Place the task ‘paying the EMI’ on top of your priority list. Connect your bank savings account with your loan account for automatic deduction. However, schedule your EMI close to your salary date to ensure availability of funds in your account.

Use your Extra Earnings Wisely

Every employee is subject to receive an annual bonus and other windfalls like gratuity bonus etc can be used to prepay or part-prepay the loan and reduce the overall obligation. If that seems unrealistic, you can try to manage to pay at least one extra EMI every year.

Switch Lenders to Save Cost

Lastly, if you realize other lenders are offering lower Home Loan interest rates compared to your existing one, you can go for refinancing. However, make sure you take a deep look at the pros and cons act rationally before opting for Home Loan balance transfer. The move can backfire if not planned strategically.

In the end, be wise and choose an appropriate scheme. Back up your decision with proper research and an efficient repayment plan.

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