Tips To Limit Your EMI Burden
Despite the availability of home loans, many individuals still put off their home-buying plans, fearing the EMI burden that can take a toll on their finances.
A home loan is an excellent credit option for aspiring homebuyers who have put off their home-buying plans because of budget constraints. Be it for new construction or a property resale, a home loan can offer loan sums worth as Rs. 5 Crore* or higher, based on your eligibility, giving you the freedom to choose a property that aligns with your family’s needs or investment plans.
Despite the availability of home loans, many individuals still put off their home-buying plans, fearing the EMI burden that can take a toll on their finances. While being financially conservative can serve you well, home loan repayment can be easily managed if planned for properly.
Lenders today have a host of home loan offerings that are competitive and lucrative to one’s financial standing, such as Bajaj Housing Finance Limited. The lender offers home loans with EMIs starting as low as Rs. 679/Lakh*, making it easy on the pocket and cost-effective. Apart from springing for the right lender, the home loan EMI burden can be managed in numerous other ways.
If you are still on the fence about applying for a home loan, this article can help you prepare an EMI repayment plan that is feasible and sensitive to your finances.
Ways to Control Your EMI Outflow
Aspiring homebuyers can consider any of the following ways to limit their EMI burden, once they take on a home loan.
- Make a Sizeable Down Payment
Indian home loan lenders are permitted to offer up to 90% of the property’s value as the home loan sanction, leaving you to fund the rest. Homebuyers are expected to pay this as a token sum at the time of booking the property, and the higher your down payment is, the lesser you have to borrow from your lender.
Borrowing a smaller sum will bring down your EMI amount directly. Not just that, but making a sizeable down payment also elevates your home loan eligibility, as it projects you as a prudent borrower with financial stability.
- Choose the Right Repayment Tenor
Selecting the right repayment tenor can help you size your EMIs correctly, in line with your present finances. Most lenders, including Bajaj Housing Finance Limited, offer up to nearly 30 years so borrowers can repay the home loan amount at their own pace, without any hassles. A lengthy repayment tenor is beneficial for those who want to make smaller EMI payments, despite the additional interest build-up. It takes the heat off your EMI burden and makes repaying the loan more manageable.
However, choosing a shorter repayment tenor also has its benefits, the most notable one being the speedy repayment of the loan without accumulating additional interest over the principal loan amount. Those who can afford larger EMI payments can consider opting for a shorter tenor, thereby limiting their total interest outflow.
- Share Your EMI Burden
Availing of a joint home loan is another way to ensure that your EMI payments don’t overwhelm your finances. With more than one co-applicant responsible for the repayment of the loan, the EMI burden is split evenly amongst all applicants, allowing you to breathe easy while enjoying the benefits of the home loan.
Making a joint application for a home loan also has other benefits, especially if one of the co-applicants is a woman. Female co-applicants can avail of additional stamp duty rebates, bringing down your total cost of buying the property.
- Negotiate Better Lending Terms
One of the best ways to ensure that your EMI payments remain well within your reach is by negotiating your home loan terms with your lender. Be it the home loan interest rate, repayment tenor or the loan sum itself, having a strong credit profile and high home loan eligibility allows you a lot more say in the loan terms offered to you.
Above this, keep a keen eye out for seasonal and festive promotional offers that help borrowers land better deals on their home loans.
- Transfer Your Home Loan Balance
If you are struggling to keep up with your EMI payments with your current lender, you have the option of switching lenders and transferring your outstanding home loan balance to them at a lower home loan interest rate.
Market leaders, such as Bajaj Housing Finance Limited, offer balance transfer facilities starting at just 7.35%* p.a., which can significantly bring down your cost of borrowing. Above that, you can also avail of a top-up loan of Rs. 1 Crore* or higher, depending on your needs and eligibility, to address expenses that are not strictly home-related.
Closing Thoughts
Having a comfortable EMI repayment plan is of utmost importance, as this alone can decide how easy or tedious your home loan repayment can become. Minimise the chances of delaying or skipping your EMI payments by ensuring that the amount fits into your monthly budget before you apply for the loan itself. You can even use the Bajaj Housing Finance home loan EMI calculator to help you tailor your home loan application to suit your repayment capacity and financial standing before applying for the home loan.
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