Are you moving into your new house you just purchased? Did you apply for a Home Loan to make your dream come true? That’s great! However, while you plan for your housewarming party and make a list of people to invite, know these smart ways to manage your home loan EMIs.
1. Learn a Little About Money Management
Maintaining a balance between your income and expenses is extremely crucial to manage your money. But now that you have Home Loan EMIs to pay, it becomes even more significant. Get your money management abilities in place by following these tips:
- Make a list of all your investments and know where all your money is.
- Close down any high-interest loans or liabilities
- Make a budget and find out where you are spending your money unnecessarily.
- Find out areas where you can reduce your expenses, such as dine-outs, vacations, entertainment, etc.
- Limit impulse purchases with credit cards.
Saving every penny at random places can give you good returns while you are paying your home loan EMIs.
2. Opt for a Short Loan Tenure
While lenders like Clix Capital allow you to take a home loan for up to 25 years, you must opt for the shortest loan tenure possible. A short loan tenure will not only help you to get rid of your home loan sooner, but also save your interest outgo.
You may use a Home Loan EMI Calculator to calculate the amount of EMIs you have to pay every month on a particular loan tenure. Look into your monthly budget and know the maximum amount you can pay towards Home Loan EMIs within the shortest period of time.
Paying off your housing loan sooner will give you extra time to focus on other things in life, such as retirement planning. You deserve a worry-free, happy life, isn’t it? So, paying off your Home Loan sooner can be the best way to make the most of your valuable life.
3. Make Partial Pre-Payments Whenever Possible
Apart from following your Home Loan EMI schedule and making your repayments in time, try to make pre-payments whenever possible. Spend annual bonus, investment maturity amount, and other lumpsum amounts towards Home Loan EMI pre-payments. Doing that will not only reduce your EMI amount in the future but also shorten your loan term.
4. Opt for a Home Loan Balance Transfer with Lower Interest Rate
If you think your Home Loan has a much higher interest rate than other lenders, look for a lender with a lower interest rate and opt for their Home Loan Balance Transfer offer. Even if the difference is just a few percentage points, it may help you save money over the entire loan term.
5. Never Ever Miss Your Home Loan EMI Repayments
Even if you are going through a financial crunch, you should try your best to make all your Home Loan EMI payments on time. Missing EMIs can negatively affect your Credit Rating, which can further ruin your chances of getting more finance in the future.
A good credit score is crucial to your financial life. Lenders judge you largely based on this 3-digit number. They look at your credit history to determine your creditworthiness as a borrower. If you fail to pay your Home Loan EMIs on time, your score gets a blow, and you may have your loan applications rejected in the future.
If you follow these smart ways to manage your Home Loan EMIs, paying off your Home Loan will become as easy as 1-2-3 for you. The key is to manage your money right. If you succeed in doing that, you will never miss your Loan EMIs and you will end your loan term gracefully. Haven’t applied for your Home Loan yet? What are you waiting for? Get the best offers at Clix
Capital and get the home of your dreams now!
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