Summary – Are you a CA and willing to avail a home loan or already serving one? Read on to get some insights on managing your home loan EMIs easily!
Mr. Harshit Saxena, a resident of Lucknow, and a chartered accountant by profession had availed a home loan for chartered accountants to purchase his dream home.
He had a decent Credit Score, strong repayment history and consistent income history which had helped him avail a home loan for CA from a leading non-banking finance company.
He was able to pay the home loan EMIs for last 1 year and he was sure that he would be able to repay the home loan for chartered accountants easily within the tenor.
However, destiny had some other plans which led to some other obligations coming up which started eating a considerable amount of his monthly income. He started faltering in paying the home loan EMI for the housing loan.
If you are in a similar situation and facing some issues in the payment of the home loan EMIs, here are some tips that will ensure you manage it easily.
Home Loan for Chartered Accountants – EMI Management Tips
These home loan EMI management tips are generic in nature and may or may not cover an exact case. However, these are standard tips which will surely help in managing the home loan EMIs.
Always do some research for a cheaper rate
Always know that home loans are always available at different rates of interest as per the policies of the lenders and eligibility of the borrower. Thus, it is always advisable to conduct your research to grab a better home loan EMI deal. Customers who are already having a home loan account may reduce their EMIs and interest rate by opting for the home loan balance transfer facility.
Keeping your EMIs higher help
Some people select a longer tenor to pay lower EMIs but that keeps the loan burden for a longer period. If any other obligation comes during that time, you will find it tough to manage the payment of the home loan EMIs. Hence, it is good to pay higher EMIs and pay off the housing loan in lesser time. What’s more, paying more EMIs for a shorter period helps you keep off from paying compounding interest rate unlike in a longer tenor.
Use home loan EMI calculator
Modern-day finance has helped borrowers know an exact home loan EMI amount even before applying for a home loan and determine their affordability. The availability of the home loan EMI calculator available on leading lender’s website can help you an EMI that you will pay, and know if you can repay it or not. Like that, you will be protected from opting for an EMI that you won’t be able to repay easily.
Keep you CIBIL score in order
When you have a strong credit score, it means that you have the creditworthiness to grab any loan. Also, lenders award borrowers with a higher credit score with a lower home loan interest rate which in turn help them pay lower EMIs. Thus, always ensure to have a robust credit score by paying your credit card bills, and other loans EMIs on time.
Opt for the home loan balance transfer
If nothing works, you can always opt for the home loan balance transfer facility to reduce your home loan interest rate and home loan EMIs easily. For availing the facility, you will need to pay your existing lender some processing charges and other fees. If you see that the fees are higher than what you will save on the EMIs, do not opt for it.
The Bottom Line
Be it the home loan for chartered accountants or anyone else, if you follow the discussed tips, it will easily help you manage the home loan EMIs affordably.
For best results, it would be better to assess your situation where to fall and implement the discussed tips accordingly.