Home loan is expensive: Understand these methods and maintain your financial condition.

Home loan is expensive: Understand these methods and maintain your financial condition.

 Whenever RBI increases its repo rate, its interest rates on the borrowers are also affected. In this way, if the RBI increased the repo rate by 0.35% this time, then it affects the EMI, that the interest rates increase, as well as your financial planning starts getting spoiled, know these 4 ways that can save the budget from getting spoiled.

 Thus, the EMI rate increases.

 When the loan rate of interest also increases, the EMI increases. Know from this example that if ever you have taken interest at the rate of 7.55% and now you have to pay emi rate of 16173, but if the rate increases by 0.35% to 7.90%, then you will have to pay Rs. 16605.

 1. Do refinance like this.

 Refinance is such a solution when there is a big difference between the rate at which you have taken the loan and the market rate, then you can do this, for example, understand that you had loan rates of 7.90% and the market rate was 7.90%. Time is 7.50% then refinance option is best for you. But here it is best only when your loan is due for a longer period than the installment, because some charges have to be paid for it. Such as transfer charges and processing fees, MOD refers to charges.

2. Increase EMI.

 It happens that if you have taken a home loan of 30 lakhs for 20 years, your income will increase in the coming time, but your EMI will remain the same, if you can increase it, then you can increase the EMI installment or make some prepayment. In which you have to pay less interest on any installment and it will be paid quickly in future.

 3. Make pre-payment.

 Sometimes it happens that the interest of EMI is high and you do not want to increase it much, then you can make prepayment once in a year. Most of the companies want that you pay the prepayment of EMI in 1_2 installments.

 Let us understand from the example that if you have taken a loan at the rate of 7.55% and had taken a home loan of Rs.30 lakh for 20 years. Now if you make your prepayment lakhs of rupees. So you will have to pay less EMI and the rate of interest charged on it will also be less.

 4. Increase the tenure of the loan.

 If the EMI of your loan is high due to which you are not able to make any other savings or income, then you can increase the tenure of EMI, but the disadvantage of increasing it is that you will have to pay more interest