Everybody wants to have a new home or their own home and for that, they need fund, at times funding, becomes tormenting if it’s not planned in a certain way. Majority of people go to the bank for the house loan but the down payment and the EMIs give them heartache. The amount you pay on EMI depends largely on the amount you have borrowed. Since EMIs takes a big chunk from your salary so try to save as much as you can before you apply for the loan. There are few more things to be paid heed to apart from saving and paying down payment from the savings:
1. Plan your expenses wisely. Cut down on the daily and luxury expenses in order to meet loan EMI every month. if you are married and both of you are earning then you can decide mutually that one will take care of home expenses and other will take care of travel and other luxury expenses, this way your financial burden will be narrowed.
2. Your earning plays an intrinsic role in deciding your loan amount. If you are earning decent and working in a stable industry with a stable job then the lender can estimate your earnings in a long time and it will increase eventually.
3. There is an option of Step-down EMIs, so in case you are going through a rough patch then you can check this offer with your bank and avail it. Once your salary is stabilised, you can come back to normal EMIs.
4. The best way to plan your EMIs is to check the interest rates offered by the bank and compare it with other banks and NBFCs and then go for the one which suits your need and repayment capacity with least burden of EMIs. Always opt for the lesser interest rate loan. Less interest means low EMI; Interest rate is directly proportional to EMI.
5. In case you have taken multiple loans then keep it your top priority to pay off the loan carrying highest rate of interest because
its EMI would be of a heavy amount. Low-interest rate loan would have low EMIs so paying them will not give you nightmare.
6. Many banks offer discounts and schemes to the loyal customer if you are the one then make use of it. It will reduce your financial burden
so ultimately good in the long run. Hence, it’s advisable to take heavy loans from the bank where you already have an account;
they might give you better interest rates.
7. The mutual fund is a smart move to spend your excess money. It gives a good return over the time.
8. Always keep a check on your expenses and make a separate account for loan repayment, EMIs and other expenses. So that unnecessary expenses can be given a red signal.
Comments are closed.