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10 August 2011

How Can I repay my Home Loan with Same EMIs or Reduce EMIs?

Property rates shooting up and high rates for area per square foot, all this is making the dream of owning a home difficult and a dream past fulfillment. Suddenly the Reserve bank and HDFC increasing their prime lending rate all the loan lending banks have increased their interest rates. More so this has had an effect on the home loans sector, which already going on a sluggish rate will suffer all the more now.
As your EMIs have increased you will now have to search for loopholes and policies to come out of these loans. End up paying more as interest or search for some way out? One immediate action now is that you can reassess you financial standing, collect data of all your assets, find value of all jewellery, and other investments. In other words go through your financial planning file! if you do not understand all this consult a good financial planner or financial consultant who can help you solve your financial matters without losing much money.
Once you understand which investments are not giving good returns you can close them and get the amount in hand. With gold at a high of 26,000 this is another option like the age old tradition of selling some to come out of the financial crunch. Fixed deposits, shares and other paper investments can also be reassessed and some converted into hard cash. Collect all the cash you can.
With all this financial planning you will get a correct picture of your finances and money at hand. Now you can have a talk with your lending bank. Either request to pay off a large amount without any prepayment charges, or give a part of the loan amount to interest amount and reduce or maintain your EMIs. Another option is to try and increase your home loan tenure, which also some banks are considering since they do not want to lose their existing home loan customers. Though at the interest rates going today I feel this is very difficult and another aspect coming in mind is that the loan repayment tenure has a limitation till the productive age of the borrower, that is 60 to 65 years only and this cannot be extended for more years than this time.
So by considering these options the borrower of home loans and any other loans can come up with these suggestions and solve the matter of increased EMIs by either keeping the same amount as EMI or even reducing the EMI! More so also coming out of your home loan sooner and enjoying a life free of loans.

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