Home loans have quickly become a preferred way of buying a house for most Indians. However, such a substantial financial commitment requires careful planning. Whenever you opt for a housing loan, here are some ways you should plan your monthly repayments.

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  1. Calculate Your Home Loan EMI

Home loan interest rates in India vary for different banks and other financial institutions. Do proper research about home loan interest rates offered by a wide range of lenders before shortlisting one. Once you have fixed a lender, use their online home loan EMI calculator to check the EMI and interest you will have to pay. Without these details, you will be shooting an arrow in the dark. So the first step of your home loan EMI repayment planning should always include accurate EMI calculation.

  1. Get a Detailed Investment Plan in Place

For any housing loan borrower, working out the details of monthly cash flow and profits from investments is crucial even before they apply for a home loan. To begin with, prepare a worksheet wherein you put details about your income and expenses to have an idea of your monthly savings. Control your monthly budget such that you can devote a sizeable portion of your earning towards EMI repayment. Moreover, invest in profitable ventures like mutual funds that provide a high return and help you lower the burden of the loan on your salary.

  1. Adjust Your Standard of Living

You might have been lucky enough to avail of an easy home loan that does not extort much out of your monthly savings. However, debt is always a burden, no matter how small. If you continue spending uncontrollably even after opting for a home loan online or offline, you might have trouble paying your EMIs. Cut down unnecessary expenses, however possible. Make a budget where you devote a sum to recreational activities per month and be strict with it. This way, you will avoid ending up with less than the required money for your home loan EMI at the month’s end.

  1. Extend or Shorten Your Tenure

Most lenders allow borrowers a degree of flexibility when it comes to choosing a home loan tenure. Once you have calculated your monthly expenditure and income from all sources, check the EMI you can afford. You can choose a shorter tenure if you wish to pay less home loan interest, or a longer tenure if you are not comfortable paying high EMIs. However, remember that shorter tenure will not always mean less interest, so check your lender’s home loan interest rates carefully before choosing your loan period.

  1. Keep Looking for Better Interest Rates

While this may sound like a tip for prospective home loan borrowers, even existing borrowers can benefit from it. Prospective borrowers can analyse both floating home loan interest rates and fixed ones. The latter is higher, while the former vary according to real-time market conditions. With floating interest rates, your EMIs can be high in some months and very affordable in others.

Existing borrowers can browse new lenders for more affordable and convenient home loans, and once they find one, they can opt for a home loan balance transfer. Make sure you always check your home loan eligibility, savings, and additional fees with your new borrower before requesting a balance transfer.

If you plan your EMIs in the ways mentioned above, you can breeze through your home loan without any difficulty. Meticulous planning and awareness can help you get rid of your debt quickly and easily.