A home loan is a high-value loan and hence involves financial commitment. There are lots of things that go into making a home purchase decision. One of the most important is how much of your monthly budget will be taken up by EMI payments.

Paying your home loan monthly installments can be a challenge, especially if you are on a tight budget. However, there are ways to reduce your EMIs and make them more manageable. In this blog post, we will share some tips that can help you achieve this goal.

Do your research

Remember taking a home loan is one of the biggest financial decisions and hence should not be taken without thorough research. With the help of the Shubham Housing Finance EMI calculator, you get a clearer picture of how much EMI is to be paid every month on your home loan. You can thereby adjust the loan duration and understand the EMI to be paid. You could also call our team at 1800 258 2225 to understand how is the EMI calculated for Shubham’s home loan.

Opt for a longer repayment tenure

Your loan repayment tenure is inversely proportional to the EMI amount of your home loan. Opting for longer repayment tenures on your Home Loan allows you to disburse the total due amount over a longer time period, thereby reducing your EMI amount. However, it is important to understand that the longer the tenure is at Shubham Housing Finance, the more affordable and smaller the EMIs will be, but it will also increase the interest payable on the loan. So, it is advised that you should only opt for longer repayment tenures if you think you can afford it.

Try to pay a higher down payment amount

Down payment refers to the up-front amount you pay on taking up any loan. Shubham Housing Finance typically offers 85- 90% of the actual price of the loan, whereas you must bear the remaining 10-15% and pay it as a down payment. However, one can always pick to pay a higher down payment amount so as to reduce the total sum taken as a home loan. Remember that you only have to pay interest on the principal amount you borrow as your home loan. A higher loan amount often results in higher interest and higher EMIs. By paying a large down payment, you reduce the EMIs and interest rates.

Choose a floating rate of interest

The rate of interest is one of the most important factors that affect the principal loan disbursed and the tenure of any home loan. In the long run, a floating rate of interest is always more beneficial than a fixed one. Remember, a loan taken on a floating interest rate will be cheaper and thus help you reduce your EMIs.

Millions of people in India have taken home loan to build their dream homes and you can be one of them by using the right tips. While this is a great way to achieve your housing goals, it is important to be smart about the loan you take and the terms you agree to. By carefully considering your options and doing some math ahead of time, you can ensure that your EMIs are manageable and that you don’t get stuck in a bad situation down the road. We hope these tips will help you make the best decision for yourself and your family and will give you the peace of mind that comes with knowing that you are taking steps to protect your financial future.

Our team of experts is here to provide advice and guidance as you work through the process. Connect with us today to get started!