Home Loan: wants a roof over their head. Meanwhile, common people have to do so much to fulfill their dream of owning a home. But in this era of inflation, it is very difficult to buy a house of your choice. Many times, one has to take a loan to buy a house. If you are troubled by the increasing EMI of the home loan, then it can be reduced in some ways.
Very few people know about these methods. These methods give some advantages as well as some disadvantages. So choose them wisely.
Can loan EMI be reduced through these methods?
1. Credit score- Our loan and credit card usage affects the credit score. A good credit score makes it easier to get a loan. There are many other benefits available from banks. Along with this, you can also negotiate with banks for interest.
2. Increasing down payment- Under home loan, we have to pay some money in down payment. The remaining balance amount is given by the bank. Which we gradually complete by paying EMI. If you increase the amount of down payment here. Then the amount of money taken as interest gets reduced. Which also affects the EMI.
3. Pre-payment- You can gradually reduce the EMI by making prepayments before the loan tenure. But the bank levies charges or fees if you repay the loan before the tenure .
4. Compare different home loans- Before taking a loan, compare the interest rates offered by different banks. This gives you a lot of benefits. You can take a loan under floating rate. If the bank does not change its floating rate even after the change in repo rate, then do not choose such a bank. EMI can be reduced in this way.
5. Refinance- If you get a better option after taking a loan, you can refinance. However, you may have to pay pre-closure fees and many other charges for opening an account in a new bank.
Why is it necessary to take a home loan?
By taking a home loan, you can easily buy your favorite item or goods. Also, buying a new house does not affect your emergency or savings. However, apart from the price of the house, you also have to pay interest.
If you take any loan for a long period, its EMI amount reduces.