Taking a housing loan can help you purchase a home when you do not have the immediate funds to do so. However, taking the right loan and planning repayment beforehand can help you have the most convenient loan borrowing experience. For instance, leading NBFCs like Bajaj Finserv offer you Home Loan up to Rs.3.5 crore at nominal home loan interest rates. Furthermore, you can avail a 3-EMI holiday, get customised insurance schemes and manage your loan online. You can also save up to Rs.2.67 lakh when availing Pradhan Mantri Awas Yojana (PMAY) to buy a home.
Now that you know where to get the best loan with added benefits, look at how you can plan your EMIs.
Use an EMI Calculator to Pre-plan Finances
By using an online home loan EMI calculator, you can not only get accurate results and experiment with different combinations when it comes to the tenor and principal, but you can also plan your financial strategy in advance. This helps you remain one step ahead and always be prepared for every EMI. Using this calculator also helps you find the ideal tenor and EMI amount to suit your monthly budget.
Choose Higher EMIs If You are Financially Capable
The higher your monthly EMIs are, the shorter your tenor will be. This also means that your total interest payable will be significantly reduced. So, if your monthly budget can handle it, opt for higher EMIs to get debt-free faster. Use a housing loan EMI calculator to forecast this.
Schedule Repayment for Each Month
Even though your monthly EMIs automatically get deducted from your account each month or are cashed in by the cheques you have given your lender in advance, it is essential you schedule the same. Opt for a date that is close to your salary date. If your salary date fluctuates or you want to be certain of funds in your account despite weekends, choose a date 2 or 3 days after your salary date. This will ensure that you do not miss out on EMIs and have sufficient funds to pay the same.
Pre-pay when You have Excess Funds
It is always better to prepay when you have excess funds instead of storing the same for future payments. Not only will this significantly reduce your owed principal amount, but it will also reduce your EMIs as your interest will be applied to a lesser principal amount. So, the next time you get a bonus or have excess income, make a part-prepayment. To make the most of this facility, choose a lender that does not charge you for making part-prepayments. You can also use a part-prepayment calculator to calculate your advantages.Bajaj Finserv’s Home Loan don’t have additional part-prepayment or foreclosure charges on floating rate interest loans.
Transfer Your Home Loan Balance, if need be
If you find a lender offering you better home loan interest rates, decreased charges and other added benefits, you can simply choose to transfer your home loan balance to the new lender. Bajaj Finserv offers you home loan balance transfers with minimal documentation and less processing time. Additionally, you can calculate your savings on the same with a home loan balance transfer calculator.
Use the above tips to efficiently plan your home loan EMIs and make repayment comfortable and easy. If you are applying for a home loan, don’t forget to use the home loan eligibility calculator to check your eligibility with just a few clicks.