How To Pay Back Your Home Loan If You Lost Your Job Amid Covid-19 Pandemic?

By Author: Fayeem
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There is apparently no sector that hasn’t felt the disastrous effect of the novel Coronavirus. Without a vaccine and a potent cure, the virus has been causing rampage all around the world. In order to prevent the infection from spreading further, most of the countries of the world have resorted to a total lockdown. But it has come at a very steep price.

Since the business is all but stopped and no revenue is being generated, the organizations have had no option but to cut down on their expenses. As a result many job workers have been laid off and many have been put on unpaid leave. Now, if you have taken a home loan in Delhi, you must be worried how you can pay back the EMIs without a job? Let us look at some ways that can help you mitigate this crisis.

Utilize your severance package

Your severance package is the money your company gives you in case of termination. Usually, it is equal to your salary as per your notice period. For instance, if your notice period is two months, you’ll get a severance package worth two months’ salary. Now, since June, everybody will be required to pay their EMIs, whether ...
... it’s business loan in Delhi or home loan in Delhi, or they’ll have to face the usual consequences. Therefore, utilize your severance package carefully and use it to pay back your EMIs.

Withdraw money from Provident Fund (PF)

On 29th March, 2020, labour ministry released a notification, according to which you can partially withdraw your retirement fund in order to mitigate the crisis caused by the Coronavirus. Employees have been allowed to withdraw either 75% of their total savings or 3 months’ salary and DA, whichever is lower. This amount can help you greatly in paying your EMIs while the situation stabilizes.

Liquidate your assets

No one likes doing this but desperate times demand for desperate measure. By liquidating your investments in various debt instruments, you’ll be able to generate sufficient capital to survive the pandemic and make EMIs for your home loans. You can also pledge gold and silver, although given the current market state, you probably wouldn’t get as much as you would have expected. But this time isn’t about profit and loss, it’s about survival.

These are just a few among a myriad of ways in which you can pay back you EMIs during this financial crunch.