How Can you Reduce Your Home Loan EMI?
According to recent data, India’s home loan market is expected to witness a compound annual growth rate of around 22% between 2021 and 2026. Certain changes made by RBI, like repo rate cuts, alongside the launch of affordable housing schemes like PMAY by the Central Government have been key reasons to bolster this immense growth.
While the situation is ideal for most to invest in real estates, the lack of knowledge regarding handling EMI payments can become a hindrance for most borrowers. Therefore, it is wise to rely on a home loan EMI calculator to evaluate the EMI amount and other key factors beforehand so that difficulties can be avoided in the future.
However, in the case of an existing housing loan in India, individuals often look for ways to reduce their home loan EMIs in order to make the repayment process easily manageable. Following are some suggestions one can go through to enjoy a lower repayment liability.
- Make higher down payment: The best way to make your monthly instalments feasible is by making a substantial down payment so that both the principal amount and home loan interest rates automatically come down.
- Balance loan transfer: No matter how many months you have already paid the EMIs for, you can still save a bulk amount in interest outgo by opting for another lender who is offering lower rates. Make sure to compare the EMIs using the home loan instalment calculator before going for it.
- Choose a lengthy tenor: Opting for a longer repayment tenor helps to bring the EMI amount down. However, a downside to this is that one eventually ends up paying a higher interest amount overall.
Before availing home loans, it is advisable to come up with proper repayment strategies so that you can avoid late penalties. In this regard, a home loan EMI calculator works as a great financial tool to estimate the exact amount you will be paying for the entire tenor and stay prepared for financial contingencies.