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Author: Admin | 2025-04-28
Loan EMI?If you are searching for ways to lower your home loan EMI payments, consider the following practices to reduce your home loan EMI burden:Make Part Prepayments whenever PossibleWhen you make a part prepayment, you pay a portion of the outstanding principal early, which in turn gives you an option to either reduce home loan EMI or tenure. Choose lower housing loan EMI only when you are striving to make loan payments in full.A home loan generally has a lock-in of about one year after which you can fully or partially prepay the home loan amount. Also, unlike before, banks and NBFCs cannot levy foreclosure charges/ prepayment penalties on floating rate housing loans sanctioned to individuals, for purposes other than business.Opt for Home Loan Balance TransferYou can transfer your outstanding loan amount to lenders offering lower home loan interest rates, longer loan tenure, or both. However, before going for a home loan balance transfer, do a cost-benefit analysis using calculator to ensure that your interest savings outweigh the transfer costs. Also, use an online home loan EMI calculator to know exactly how much your EMI’s can go down on a lower home loan rate.Can Home Loan EMI Amount Change During Loan TenureYes, even though your housing loan EMI is usually a fixed amount, it can change during the loan tenure but under certain circumstances, listed as below:When you have step-up or step-down loans: If you have opted for flexible EMI such as in the case of step-up or step-down property loans, then there will be a change in your housing loan EMI. In the case of step-up loans, your EMI will gradually increase over the tenure. In the case of step-down loans, your EMI’s will decrease as time passes.Partly disbursed loan: In the case of partly disbursed loans, the pre-EMIs
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