Losing a job and its resulting financial restraint can make it difficult for borrowers to repay their home loan EMIs on time. Under such circumstances, there are a few options that can be explored by individuals to manage their home loan EMIs. Customers should calculate their exact expenditure using a house loan calculator before opting for either of them.
Balance transfer:
This is an option that not only allows a borrower to delay their home loan EMI for a few days but also allows them to restructure their repayment tenor. Additionally, it also allows an individual to avail lower rates of interest on the remaining balance of the line of credit. Usually, financial institutions charge a processing fee for this facility which can go up to 1% of the loan amount.
Along with rescheduling the repayment, balance transfer also provides borrowers with an insurance cover in case of unforeseen mishaps. Customers should calculate their exact expenditure with a loan EMI calculator before opting for it.
Deferral:
This is a comparatively less popular option. It involves discussion with the relevant agent or manager of the financial institution to reschedule the EMIs. Additionally, borrowers can also seek to extend the tenor of repayment so that they have to pay a lower amount in every EMI. However, in case they choose this option, they might have to pay a higher rate of interest.
Any individual who has suddenly lost his or her job can try for either of the methods discussed above. They should be cautious to reconstruct their financial planning and follow the simple steps for effective home loan management.
Similar Read: Lost Your Job? Know How to Manage Home Loan EMIs
