Building/ owning a home is considered to be one of the important financial decisions one can make in his lifetime. Most importantly building a home with a home loan is yet another bigger financial decision, as it can turn out to be the biggest financial liability for him, as the loan has the biggest repayment time from 10-30 Years.

However the home loan repayment process can literally drain the borrower financially, as EMIs need to be paid regularly, added to this the interest component of home loans can make things much more complicated. For instance if you fail to pay EMI dues on time, banks may penalize you with a whopping amount, and also you may get a better interest rate compared to the already availed home loan interest rate.

It’s only with a definitive approach, and perfect planning, Home Loan repayment can be handled better. Here are few tips from our Loanzzones experts on handling Home Loan Repayment effectively.

#1. Go For Prepayment:
Few banks allow them to reduce the interest rate of home loans, if their customers are ready to prepay the loan amount. However the catch here is that, borrowers need to confirm with the banks before they go for prepayment. Banks may levy a penalty charge, or prepayment fee in case of prepayment, in case of fixed interest rate.

In case the loan is availed on floating interest rate, you need not pay the pre-closure charges

#2. Short Tenure is Sweeter:
Choosing a longer home loan tenure can put you at the risk of higher home-loan interest rate from banks. Borrowers can choose a reasonably short tenure of loan, if they are financially stable. Summing up, a shorter loan tenure can help in closing your loan earlier with a less interest rate.
#3. Increase the EMI Amount:

Some banks allow their home loan customers to increase their EMI amount by 5% every year, or increase their EMIs in a single year. Choosing this type of an option, can help in reducing your “Interest Outflow”. However a careful assessment has to be exercised before choosing this option, this option has to be availed only when all the financial commitments can be fulfilled, and any other income can be expected in advance.

For instance an employee, utilizing the annual bonus or any other income other than your main occupation for loan repayment can help in making a lot of difference in your loan tenure.

#4. Home Loan Transfer:

Home loan business these days is the most competitive one, go for a research to know about the lenders of home loans with low interest. Refinancing/ Home Loan Transfer can surely reduce the interest rate burden on you. In this process the outstanding loan amount is transferred to a new lender with a better interest rate. Utilizing this option can not only help you in reducing the interest burden, but also in managing the saved money for other obligations.

#5. Increase Your Down Payment:
Most of the banks ask for a 20% down payment from borrowers at the time of loan disbursal, however if you can afford more than the specified % of down payment go for it, as it can reduce the principal amount. This automatically can help in reducing the interest rate, as well as faster repayment times.

Loanzzones.com is one of the best online loans service providers. Our Home Loan products can saves your time, gives you more choice in getting your desired loan. We give our best service, and pride ourselves on excellent advice.

Our flexible, affordable home loans with more features and lowest interest rates in the market. You can also rely on being encouraged both today and later on by a Home Lending Advisor who’s always approachable and available.

Looking for more details? Please reach us at https://www.loanzzones.com/home-loan-in-hyderabad, you can also reach us at lnfo@loanzzones.com

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