10 Tips on Home Loan EMI before Taking Home Loans in India

home loan emi

There are many people who desire to buy a home of their ownership. Although buying a home is exciting, however, it is not very easy as one need to do a lot of homework regarding the different processes involved in it.

Amongst them, taking a proper home loan with appropriate home loan EMI is one of the most important things while buying the home. Taking a proper home loans EMI without digging much into your savings will help you get along very comfortably.

Here are 10 Tips on Home Loan EMI before Taking Home Loans in India:

  1. EMI amount should be approximately 50% of your monthly income

While taking the home loan one should make sure that the EMI that they take will be approximately 50% of their monthly income. This will help you to go along very easily without making major adjustments in the routine. This will even make it easy for your loan provider to process the things quickly.

  1. Proper scheduling of EMI

Paying the EMI on the given time will increase your creditworthiness considerably. So, while scheduling the EMI to be paid on the home loan you take should match with the date of your salary or other income sources. This will help you that you have sufficient money while paying the EMI.

  1. Pay more amount of EMI to cut more outflow of money

Paying an EMI of Rs.15,000/- per month may look smaller than paying an EMI of Rs.25,000/- per month. However, one who pays fewer amounts in the EMI will be paying more when finishing all the EMI as each EMI will incur the home loan interest rates for a longer duration. If a person pays more amounts in EMI then the entire loan will get covered up in a shorter period along with few interest counts which can help to prevent more outflow of money.

  1. Choose a bank with a lower interest rate

There are various banks which offer different interest rate for the EMI on home loans. Choosing a bank with a lower interest rate in the EMI will help to control the outflow of cash.

  1. Use a proper calculator app

There are many of the calculator apps which can give you a better idea regarding the details of the home loans. They can give you a proper idea regarding the different home loans schemes and the associated EMI that has to be paid along with it.

  1. Do proper research on fixed and floating interest rates

Many of the banks provide two types of interest rates: fixed and floating interest rates. In fixed interest rate, the interest remains fixed for some of the months as per mentioned in the home loan agreement. The floating interest rate changes as per the changes in the market. In most the cases, it is found that the floating interest rates are cheaper when compared to the fixed interest rates.

  1. Try to increase your CIBIL score

To get a low-interest rate on the EMI for the home loans, it is very necessary that you have a proper CIBIL scores. The CIBIL scores with more than 750 plus scores is generally considered as good. So, CIBIL score more than 750 scores can get you comparatively lower interest rates on the EMI.

  1. Try to pay extra EMI each year

Try to pay extra EMI every year to lower the burden on the EMI. Paying an extra EMI may look tough initially, however, this is bound to give you long-term benefits. This will also help in the case when you have any financial emergency for any of the months.

  1. Read the documents properly

It is possible that the loan which the home loan provider gives have some of the hidden clauses regarding the home loans. So, while taking the home loan it is very necessary that one thoroughly goes through all the documents. All the minor details need to be considered pertaining to the EMI.

  1. Never delay or default the EMI

In EMI payment, try to ensure that you never have a single delay or missing an EMI. This will affect your CIBIL score considerably and also higher your later interest rates. So, while taking the home loan you must keep the EMI amount for every six months separately to avoid any unexpected financial problems.

These are 10 Tips on Home Loan EMI before Taking Home Loans in India which will help you get proper EMI. Taking a wise decision while taking EMI is utmost important for any of the home loan.


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