Building the home of your dreams is an appealing yet overwhelming experience. You require months of planning and years of hard work to finally be the proud owner of your dream home. However, unlike earlier years, the EMI on home loan in the present date can cost one’s arm and leg. Protech Group understands such situations and hence, we highly recommend our customers to apply for home loans that best suit their needs. With this, you can put the worries at bay of high prices and plan to invest in the ideal property. We also have accumulated some simple tips from our real estate experts on how to reduce the EMI on your home loan.
Consider a Loan of Long Tenure
Ensure that you go for longer home loan tenure. This will prove ideal to reduce the loan’s liability and enjoy immense benefits. For instance, if you take a loan of INR 25 lakhs for 20 years at a 9% interest rate, the EMI will be INR 22,493 with you paying INR 53.98 lakh including principal and interest. On the other hand, taking the same loan for 25 years in the same interest rate will require you to pay only INR 20,980. To calculate the different EMI rates and get an indicative calculation of your EMI, try our EMI Calculator designed to calculate your loan amount, interest rate and the loan tenure.
Pay More for your EMI
Try to pay more the amount over your actual loan EMI amount each month. This will allow you to reduce the overall burden of the loan and get to repay the complete amount in lesser years. So, apart from your original EMI amount, try to pay at least INR 2000-2500 extra.
Switch the Loan
You should regularly check the interest rates offered by different banks when it comes to home loans. During the course of your loan from your current lender, if you come across another who is offering a better rate, it is wiser to switch. This step, however, should be taken if the tenure to repay the loan is still long enough.
Make Regular Payments
When you make regular payments, you can quickly reduce your home loan liability. You can take the help of your maturity proceeds from insurances or your additional investments. So for example, if you pay an additional amount of INR 21,000 each year for an INR 30 lakh loan of 20 years at the same interest rate as above, you can manage to pay off the complete amount in just 18 years. This will also help you save an additional amount of INR 4.1 lakh.
To get better results, we highly recommend that you do regular payments to pay off the loan. Properties come of various types and depending upon the infrastructure they receive, the rates vary. Additionally, the location of the properties too plays a great deal when it comes to price range. Hence, you can connect with the professionals of Protech Group by clicking here for a better insight into the available properties in Guwahati and receive guidance for the ideal loan amount.
