Smart ways to deal with your house EMIs

Smart Ways to Deal With Your House EMIs | Hiranandani Communities

Smart ways to deal with your house EMIs
Hiranandani Communities | 23 April 2019

House EMIs

Getting approval on your loan calls for a celebration, as now you will finally be able to pay for your dream home. But what follows after you have made the payment and have shifted to the house, is not an easy task. Your home loan EMIs will start right after the purchase, which is a long journey in itself and you have to finish it anyhow. Here are a few tips to better manage your finances and deal with the EMIs.


Get your bank to automatically collect the EMI from your account 2-3 days after your salary day. Prioritizing the EMI is of utmost importance because if there is a delay in EMI payment due to any unforeseen reason, then there will be a fine charged on that. Try to never miss out on paying your EMI as it will keep adding on the interest for you to pay more. And nobody wants that. 


After taking the loan, you should focus on trying to repay it as soon as possible irrespective of the tenure. So, any bonus, monetary gifts, fund maturity etc. should be used to prepay the loan amount. If both, you and your spouse are working, so with both of your money, the loan can be paid in advance. Try making lump sum payments in the early years of the loan. 


After a certain period, every bank reduces the interest on the loan at which it was taken. The rate keeps fluctuating and after a few years of paying at the same interest rate, you might be able to pay your dues at a slightly lesser rate. Banks decide the interest rate reset period and the borrower needs to keep an eye on it and make a switch as soon as the option is available. It’s better for the payee to switch to a lower rate of interest in the long term. 


Once you start getting the hang of paying EMIs and you have some amount saved, try paying an extra EMI every year. Banks do not charge pre-payment fee on extra EMIs and it benefits you in the long term as your overall outstanding amount reduces. 


While deciding the overall tenure and EMI amount for your loan, try paying the larger amount as you will get the lower interest rate on that. For example, for a loan of 50 lakhs, if you have an EMI option of Rs. 50,000 to be paid for 20 years at 9% rent and another option is to pay Rs. 30,000 for 30 years at 9% rate, then don’t try and save those Rs. 20,000 now. As you will end up paying more than the actual amount in those 30 years. 

You must keep these points in mind while deciding on the EMI payment. Check out properties by Hiranandani Communities to invest in for your next home. Also, banks sanction loans faster if you’re investing in a property by a reputed builder. Check home loan options as well with the banks associated with Hiranandani Communities.