Articles

Tips For Repaying A Property Loan

by Sagar Chauhan Digital Marketing Analyst

Buying a home loan is one of the biggest financial commitments in a person’s life. Taking one is easier said than done. A majority of the banks and loan providers in Delhi-NCR are eager to lend a home loan by continually ‘disturbing’ the people, the hassle lies in getting a home loan sanctioned. It is the right way of buying the right home without digging one’s own pocket. But when it is the payback time or paying the equal monthly installments (EMI), it isn’t always easy for a person to handle the situation. So, here is a quick summary of the tips that can help in repaying the EMIs of the home loan conveniently.


  • Pay A Higher EMI

The best way to ensure that a person is able to repay the loan, before the loan tenure expires, is to pay a higher EMI. By adding a few thousand to the EMI, depending upon the loan and its tenure, an individual can shave off many months or years from the loan period. Even the banks and loan providers in Delhi-NCR suggest the home loan buyer pay the higher EMI. Thus, the home loan buyer should invest the money prudently in generating an ample amount for EMI.


  • Consider A Bank Charging Lower Interest Rates

A person can save a huge amount of money by choosing a bank that charges lower interest rates on a home loan. This happens because the lenders lower their lending rates due to interest rate reset period. The loan purchaser can make the best use of it under the Balance Transfer Scheme (BTS) offered by banks. Under this scheme, the bank charges a certain fee and transfers a major unpaid loan amount to another bank for a lower rate of interest.


  • Pre-Partial Payment

The partial pre-payment is an easier way of lowering down the loan tenure and decreasing the obligation of the loan. It is beneficial as the bank doesn’t charge any fee over it. Furthermore, the pre-payment amount is usually low and doesn’t burn the pocket of the loan buyer. The bonuses, amount gained by selling a property, FDs on the way to mature etc., can be used for the partial pre-payment.


  • Never Miss/Delay Monthly Payments

Skipping the monthly payments can pull out the surplus cash and degrade the credit score. Banks categorize certain accounts as Specially Mentioned Accounts or SMAs when the liability remains outstanding between 30-90 dates after due payment date. Ensure that your account is never tagged under SMA.


  • Use Mortgage Calculator

A mortgage calculator helps in understanding how much loan can be sustained by the loan buyer. Using a mortgage calculator, a person gets the knowledge about the monthly mortgage payments, down payments that can be made in cash, and interest rates under different types of home loans. Moreover, people also get the right idea for buying the suitable home loan scheme according to their financial status.


It may take years to build a home but following these tips, one can purchase the residential property of their choice without any hassle. The person just requires purchasing the suitable home loan scheme.


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About Sagar Chauhan Senior   Digital Marketing Analyst

163 connections, 3 recommendations, 539 honor points.
Joined APSense since, November 30th, 2016, From Delhi, India.

Created on Jan 1st 2019 00:57. Viewed 201 times.

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