GET A CALL BACK

Want us to help you with anything?
Request a Call back

This field is required Only alphabetes are allowed
This field is required Only alphabetes are allowed
Please enter valid number
Please enter valid email
Please select product type
Please enter valid pincode

Thank you for your request.

Your reference number is CRM

Our executive will contact you shortly

THE
ORANGE
HUB

Blog
2 mins Read | 3 Years Ago

5 Helpful Tips to Reduce Home Loan EMI

5 tips to follow for Home Loan Repayment

Login Now   Know More

A home loan is a great form of financial assistance that can help you achieve your dream home. The loan is a long-term commitment, and repaying it is definitely a hassle rather than applying or getting a sanction from the lender. Let's get to know repayment tips to manage Home Loans better.

 

A Home Loan is the most convenient source of revenue for home buyers. When you're applying for a Home Loan, you're required to go through a rigorous documentation and approval process. Since the loan amount is huge, lenders follow a stringent procedure, as the slightest error can lead to a rejection of the application. It could cost you an arm and a leg to pay back the loan amount.

As a home buyer, the home loan repayment process can drain you financially, as you have to be regular with your EMIs. Moreover, the interest component of the loan further adds to your woes. But if you have a definitive approach, repayment doesn't have to be much of a hassle. Let's get to know about Home Loan repayment tips:

  1. Pre-payment of Loan: You can lower the interest payment by prepaying the loan amount. However, you need to confirm this with the lender as some of them charge a penalty or compel you to pay a fee, if the interest rate is fixed. In the case of the floating rate, there is no imposition of pre-closure charges.
  2. Do not choose a long loan tenure: The longer the Home Loan tenure, the higher the lenders' interest rate. Instead, choose a shorter tenure if you're financially stable. This will ensure that the Home Loan repayment process is faster and the interest rate will be low.
  3. Increase your EMI: If you're financially sound, you can opt for increasing the EMI by 5% every year or pay more than one EMI in a year. The interest outflow will decrease to a great extent. Estimate your financial needs and then calculate how much extra EMI you can afford if there is an increase in your salary or when you get an annual bonus. Even if it is a small amount, it can make a difference to your loan tenure.
  4. Look out for lower Interest rates: Research if lenders are offering lower interest rates, so you can easily opt for refinancing or home loan balance transfer. Refinancing can be a great decision as it reduces the interest burden, where the outstanding principal amount is transferred from the old lender to a new lender at a lower rate. This is an easy and effective way to save on interest and utilise it for managing other financial obligations.
  5. Down Payment: As a home buyer, you're typically required to make a 20% down payment at the time of home purchase. If you're able to shell out a higher amount for down payment, the loan amount can be reduced. This will further help lower the interest rate, and the Home Loan repayment can be quick.

Whichever option you choose from the above, you need to be cautious about your financial conditions first. You shouldn't stretch beyond your disposable income in order to reduce your Home Loan.

 

T&C

For disclaimer, Click Here.

Login Now   Know More

People who read this also read

View All

Recommended

View All
Blog
2 mins Read | 11 Months Ago
What is Money Saver Home Loan Scheme - ICICI Bank
Home Loan
628

Scroll to top

arrow