Lenders today have relaxed home loan approval requirements, and this helps you capitalize on funds for home purchases without jumping through tires. In addition, you now have access to a range of digital offerings and features such as online loan application make it much easier to apply for a home loan in India.
While it is true that it is easier to access funds today, you need to remember your responsibility to repay the loan in a timely manner. Many borrowers are quick to accept loan agreements but end up struggling with repayment. It is possible to address such issues with ease, and to get some insight into the subject, take a look at these reliable ways to reduce the EMI burden on your home loan.
Pay a larger sum as a deposit
Although a higher LTV (Loan to Value Ratio) offered by many lenders can attract you when you get a larger loan amount, paying a large sum as a down payment will reduce the burden of paying a high EMI on home loans. Because when the loan amount is low, repayment is easier. Paying a higher down payment also increases your chance of sanctioning the loan quickly and at a lower interest rate.
Communicate and negotiate with your lender
If you maintain a higher CIBIL score greater than 750 and have high income with less existing debt, your home loan eligibility will increase and you can get lower interest rates from lenders. Use this information to discuss and obtain affordable loan terms that will make it easier for you to manage your EMI home loan.
Repay loan early with excess funds
Home loans have a long term that adds a long term liability to your list of financial obligations. So you have to plan in advance. A partial prepayment can be a good idea to lower the EMI amount of your future home loan. Make sure you plan to do this during the initial term of the loan when the interest portion of your home loan EMI is higher. Also, instead of using your emergency funds, use excess income from investment disbursements or bonuses.
Share the EMI burden with a co-borrower
When you apply for a joint home loan with a co-applicant, not only do you increase your home loan eligibility, but you also have the opportunity to share responsibility. Apply for a home loan with your spouse or family member to pay half of your home loan EMI at a time, if possible. This only works if your co-applicant also has a stable income and good credit. So consider these issues before proceeding. Remember, women today also get a lower interest rate when taking out a home loan in India, which can further help you reduce the EMI amount on your home loan.
Consider doing a credit transfer
If you find that your current lender is charging you more interest than someone else, you can always refinance your loan. However, you should also consider the costs involved. If the interest rate advantage is higher than the cost of transferring the credit, then take it. If so, use the home loan EMI calculator to check the new amount and use the home loan balance transfer calculator to plan your move.
With these tips, you can ensure that your EMI home loan fits in your pocket and that you have a hassle-free repayment experience. To get lower interest rates right from the start, apply for the Bajaj Housing Finance Limited Home Loan. The interest rate starts at only 6.75% and offers enough financing to buy your dream home. In addition, it is very easy to apply online by meeting simple criteria and providing basic home loan processing documents so you can access the funds you need within 72 hours of approval. To begin your homeowner journey, apply online by completing the quick and easy form.