Every time you think of getting a home loan, you have to rethink your monetary strategy because of the hikes in home loan rates in India. Many are actually dealing with loads of problems as they realize the interest rate is not comfortable to pay.
So here come some easy ways that could make your home loan burden a little comforting.
Plan For Refinancing
If your existing lender is not able to provide you a suitable interest rate, you can switch to another lender. But for this, you need to find the proper loan provider whose interest rate is comparatively lower. As the repo rate goes up the interest rate of each bank will increase. And this means the borrower will be facing issues all of a sudden. Thus changing your lender is a good option. If you find that your lender is taking more interest rate than the standard policy, it is always advisable to plan for a home loan balance transfer.
There is another helpful way to lower the burden of increased home loan rates in India. This is the part prepayment scheme where the borrower can pay a part of the percentage of the main amount to reduce the EMI. this will lower your overall EMI. but you need to make sure that your lender offers this service.
Always ask your lender to increase the EMI in time of the hike in home loan rates in India instead of the tenor, as with increased tenor your interest will be automatically compounded and will reflect your interest payable. Take the help of an EMI calculator and know how much EMI you would be paying with the same tenor and increased rate.
Apart from these, one has to be very particular in managing their budget a methodical manner to avoid delay in home loan repayment and getting burdened.