With the current economic crisis-induced due to the Covid-19 pandemic, managing loan payments and other monthly fees have become a frightening task for ordinary humans. This is mainly because of salary deductions and layoffs that occur in most industries. Fortunately, there are several ways to reduce your home loan EMIS during this pandemic season. Here are some smart ways to reduce home loan EMIS in the Covid crisis. If you still plan to buy flats the do check these 2 and 3 bhk flats in jagatpura Jaipur.
The RBI has announced a total of six months of a loan moratorium starting from March 1, 2020 on 31 August 2020 in an effort to overcome the financial crisis. The moratorium period refers to the period of time where you do not need to pay EMI on the loan taken. He is also known as Emi’s vacation.
For the benefit of buyers of home loans, we have identified several smart ways that you can reduce the burden of the monthly loan. Let’s discuss each in detail.
Choose Different Lenders Offering Lower Interest Rates
Financing your home loan with a lower interest rate is one of the simplest ways to save EMI payments. So, if you are wondering how to reduce your home loan amount, consider changing your lender. It is possible that you might have taken a loan of a house many years ago and at that time interest rates were on the higher side than now. Changing lenders is not a complicated process. Start looking for new lenders that offer lower interest rates and you can easily get home loan transfers from existing lenders. Experts also suggest you choose a lender that offers marginal costs of fund-based loan interest rates (MCLR) because you can benefit from a lower repo level. You can use the EMI Calculator to check the amount you will pay at the reduced interest rate.
Take Advantage of Pre-Loan Payment Facilities
Given the scenario of Pandemics, most non-banking financial companies (NBFC) have ignored pre-loan payment costs that allow borrowers to pay a large amount of money to pay for previous loans. Home loans, overdraft facilities that are linked to your bank account can be used to deposit a higher amount of EMI. This will be used as pre-payment for a home loan so as to reduce interest on the amount of loans circulating. You also have the flexibility to attract this extra number, then in an emergency and the number of loans circulating will be adjusted.
Consider Making Greater Advance Payments
Paying a higher amount of down payment for your home loan will reduce the number of interest and EMI. Take advantage of your savings and consider making greater payments if you use a home loan. In addition, the government has now relaxed the rules for the withdrawal of funds from the Providence (EPFO) fund organization account. In March 2020, the Ministry of Labor has issued a notification that allows 60 million customers to attract up to 75% of their retirement savings or up to three months of salaries and deafness deviations (DA) from their lower fund accounts. Utilizing all these facilities is a wise decision to pay a higher down payment for your home loan.
Request for Extension of Payment Workers
Another alternative is to find the extension of payment periods from your existing home lenders. Although mastery of loans longer means you have to pay more, you can get a significant reduction in your monthly EMI number. If nothing works, this is the best option you can consider. Approval for extensions depends on your age because usually the loan period is only allowed until your retirement age and does not exceed that. However, you can approach your lenders and send requests.
As a borrower, if you are looking for ways to reduce your home loan load, follow the tips mentioned above. With intelligent planning and some tactical movements, you can easily manage your home loan EMI during this test period. If you plan to take a new home loan, make sure you choose a lender that can be offered with a lower interest rate. Also, you must review and understand the rules and feasibility criteria given by the lenders before signing any documents. Be aware of interest calculations, loan mastery, pre-payment options, refinancing and extension policies, etc. will help you make a decision based on information.
We hope this article is useful to you. If you need help with home loans or EMI payments, don’t hesitate to talk to financial experts or real estate advisors because they will be able to guide you further.