Are you feeling anxious about committing to a long-term home loan? Concerned about how to manage repayments or pay it off early? Don’t worry! We’ve got some simple tips that can help you lower your home loan EMI quickly, allowing you to pay off the loan gradually.
Make Pre-Payments
One of the easiest ways to cut down your EMI is by making pre-payments whenever you can. If you have some savings left over after your monthly expenses or receive a lump sum from somewhere, use that to make pre-payments. Each time you do this, the amount goes straight towards reducing the principal, which in turn lowers your monthly payments.
Extend the Loan Tenure
Sometimes, your monthly budget can feel tight because of the home loan EMI. If you’re unable to increase your income or save more, consider extending the loan tenure to reduce your EMI. Just keep in mind that this might lead to paying more interest over time.
When selecting a bank for your home loan, always compare interest rates. Opt for the bank that offers you the best deal. It’s not uncommon to find that another bank has a lower rate after you’ve already taken out a loan. If that’s the case, think about transferring your loan to take advantage of the better rate. Always aim for the best deal and don’t hesitate to switch if it benefits you!
Banks frequently offer lower interest rates to customers who have a strong repayment history and a good CIBIL score. If you have a solid record, consider discussing with your bank to negotiate a reduction in your home loan interest rate, which can lead to a decrease in your EMI.
Increase your down payment
When applying for a home loan, aim to make a larger down payment. Contributing an additional Rs 1-2 lakh can lower your EMI by Rs 2-3 thousand. Additionally, this approach helps you save on interest costs.