Understand How to Pay Your Home Loan EMI Properly

A responsible borrower is likely to be thinking and planning the repayment of a home even before withdrawing one. Paying off EMIs timely is a huge financial achievement. Repayment of housing loans might seem challenging to many because of the long tenor and debt burden. However, there are several ways to work around it. You can pay off the monthly installments easily with proper planning and smart spending habits.

Manage your EMIs and your personal finances better by using a home loan EMI calculator. It helps you to make informed decisions regarding your funds and pay housing loan EMIs properly.

Different options to repay your home loan

Before availing a home loan, borrowers consider various points including interest rates, reputed lenders, added benefits, customer service, and so on. After the disbursal of loan, he or she has to start considering specific points to ease the repayment of the advance. Here are some of the home loan repayment options to make the repayment easier –

Increasing the EMI amount

This concept is also known as step-up repayment. It allows you to pay back higher monthly amounts as and when your income grows. As your income rises, you might want to pay higher EMIs to reimburse the loan faster. It also brings down the overall interest you would have to pay otherwise. You can use the loan EMI calculator to evaluate the changes in EMI in terms of your income hike from time to time.

EMI holiday

Certain financial companies offer a special facility called EMI holiday on the housing loan repayment. It allows you to start your EMI payments after a delay of 3 months. This facility can be helpful for borrowers to overcome times when they have a tight budget. In the initial months of the loan withdrawal, you are likely to be short of surplus funds because of expenses like registration fees, brokerage for a new house, stamp duty, and so on.

Prepayment facility

You can reduce the total burden of home loan repayment by opting for a part prepayment facility from your lender. It lets you pay off your loan partly or wholly through your surplus funds. This way, you are liable to pay lesser interest and become debt-free faster. Enquire about the prepayment clause from your lender before you avail a housing loan.

It is wise to choose a lender who offers prepayment facility with zero charges on housing loans. You can also use a prepayment loan EMI calculator to have a better idea of the estimates and manage the burden of home loan repayment better.

How to use a home loan EMI calculator?

EMI calculator is a handy tool to check home loan eligibility, monthly installments, interest payable, and so on. You need to enter details of the following in the online calculator-

1. Your name
2. Mobile number
3. Total loan amount
4. The tenor of the loan
5. Home loan interest rate

After filling in the boxes, you will immediately find the estimated total payable interest, the aggregate amount payable, and the EMIs. Having these estimates is extremely important to make a beneficial change in home loan repayment. Through the EMI calculator, you can also get a visual representation of the monthly repayment schedule. This makes it way more useful.

Streamline your finances better, stay updated about your EMIs, be financially responsible to repay your home loan efficiently. Also, you can make use of the loan EMI calculator anytime to access your repayment estimates.

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