Taking a conventional Home Loan is one of the largest long term investment you are going to make in your life. Generally speaking, the equated monthly installment or EMI is one of the largest expense in a given month of a borrower. Borrowers need to pay the EMIs for a period of ten to twenty years or so as to ensure timely repayment of Home Loan.
Here is how to handle your Home Loan repayment:
Consider opting for MCLR- After taking the woes of the borrowers regarding lenders neglecting their needs into consideration the RBI has made it mandatory since April 2016 for banks to switch to Marginal Cost Based Lending Rate or MCLR. If you are an existing customer you can also switch to MCLR
You can reset your Home Loan to a reduced interest rate- Housing finance institutions and Non Banking Finance Companies or NBFCs are not yet covered into MCLR by the RBI. You can reduce your Home Loan EMI rates by paying a conversion charge of 1% of your outstanding principal amount
You can consider paying your debt off before time- Borrowers can always opt for this option of prepayment in part or in full and lenders do not have any authority to charge any penalty for the prepayments.
Learn the details of making your Home Loan repayment here: https://www.gethow.org/easy-home-loan-repayment-options-debt-free-faster
