According to a recent report, Indian home loan market is expected to grow at a CAGR of around 22% from 2021-2026. Due to RBI's certain changes regarding repo rate cut, existing home loan borrowers can be benefited from the reducing margin of home loan interest rate.
The demand for home loans is rising rapidly due to the lucrative schemes offered by several financial institutions. If a borrower is concerned about their financial burden, one can use several methods to reduce home loan EMI using EMI calculator tools. Hence, before applying, individuals can check out how to make EMIs more affordable and simplify repayment procedure.
Tips to reduce your home loan EMI:
Make a higher down payment: Financial institutions generally do not sanction the total price of the property. NBFCs offer 80-90% of the property price, and the rest of the amount is arranged by the borrower. However, if borrowers can arrange the maximum down payment, EMI will reduce significantly.
Home loan balance transfer: If individuals have been punctual about EMI payment, they can negotiate the home loan terms. Alternatively, if borrowers find another lender who offers housing finance at a lower interest rate, he/she can switch lenders to reduce home loan EMI.
Choose lengthy tenor: Top HFCs allow borrowers to choose a home loan tenor of up to 360 months. Since home loan EMI per lakh depends on the interest rate and tenor of the credit amount, choosing a longer repayment tenor brings down your monthly EMIs and increases the total payable interest.
Hence, before availing of a home loan, it is advised to the borrowers to compare financial lenders to pick the most competitive interest rate.
