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Few Tips To Make Your Emi Payment On Time
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Having ownership rights on your home is a proud feeling. However, it is also a necessity. All banks provide home loans with the condition that the EMIs will be paid without fail throughout the tenure of the loan. Your EMIs is calculated on the basis of your home loan interest rate and your total loan amount. In case you fail to pay your EMI for three months consecutively, the bank lists you as a loan defaulter and will take over your property to recover their loan amount plus monthly interest. Thus it is essential that you pay your EMI consistently and regularly. Some smart and easy ways of doing that are as follow:
1. Set a budget
It is important that you realise your true financial situation and direct your lifestyle accordingly. Your first priority should be repaying your EMI because failure to do so will result in disastrous consequences. Avoid unnecessary expenses, cut down on your electricity and telephone bills, avoid expensive holidays, carpool to save fuel charges and most importantly avoid using your credit cards.
2. It should be a family propaganda
Make sure your family is aware about your home loan and the EMI. You don’t have to be the sole earner in the family. If they can’t contribute by earning money then teach them how to save money. Explain the concept of home loan, home loan interest rates and EMI to your children so that they understand and behave accordingly.
3. Festival Bonus
Salaried individuals receive a hefty bonus amount from their employers during their festivals. Plan and use that bonus amount. Do not spend it on unnecessary things and if you don’t have other expense lined up, remove a major portion of it for your current and subsequent EMI payments.
4. Pre-payment or Part Payments
Pre-payment is paying a part of your loan before the tenure is over. If you have more cash at your disposal for a particular month, then pay a higher EMI or make a part payment. The idea does sound scary but is smart because on doing so your principal amount will come down and so will your home loan interest rate. Moreover, your tenure for EMI will also come down considerably.
5. EMI calculator
To pay your EMI on time it is important you consider your financial statement for the tenure of the loan. Thus before taking a loan, use an EMI calculator and calculate the amount you will be required to pay monthly and see if it is feasible. Always keep in mind the EMI amount while filling the loan amount so that you don’t become a loan defaulter.
6. Interest rates
The interest rates are an important part of the EMI. Before accepting the loan,check that you can afford to pay such a high interest on your principal amount regularly.
Author Bio :
The author is a seasonal writer on topics of finance and the home loan sector. Through her writing, she articulates aspects that are important to people availing facility such as home loan interest rate, documents, home loan eligibility criteria that help to make the best decision.
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