Home Loan: 5 Ways to Reduce EMI Before RBI Repo Rate Decision
By Lokmat English Desk | Published: December 4, 2024 03:30 PM2024-12-04T15:30:58+5:302024-12-04T15:34:57+5:30
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If your home loan interest rate is high, refinancing could be a beneficial option. Through loan refinancing, you can secure a new loan with more favorable terms, including a lower interest rate. This can significantly reduce your monthly EMI payments.
Whether you're employed or running a business, if you've received a substantial bonus or profit, consider using that money to prepay your home loan instead of spending it. By making a prepayment, you reduce the principal amount, which in turn lowers your monthly EMI payments.
If your EMI is too high and is affecting your home budget, you can opt to extend the maturity period of your loan. This will lower your monthly EMI payments. However, it's important to note that this will also increase the total interest paid over the loan's duration.
If you have been consistently repaying your loan on time for a long period, you can request your bank to reduce the interest rate. In some cases, banks offer lower interest rates to loyal, long-term customers as a benefit.
If you are purchasing a house for the first time, take advantage of government schemes like the Pradhan Mantri Awas Yojana (PMAY), which offers interest rate subsidies. Additionally, try to make a larger down payment when borrowing. This will help reduce your EMI from the very beginning, making it more affordable.
