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A home loan is a gateway to invest in a prized asset called ‘home’ that has mostly appreciated in value over time. While opting for a home loan, it is important to take the financial side into account and regulate the recurring outflow of funds that manifests in the form of EMI. Here are some useful tips that will come in handy to manage your finances;
Choose the right lender
At the outset, it is important to make a thorough study of the home loan market and settle for a lender who offers you the best interest rate. An interest rate that is comparatively lesser even by a fraction can help you save considerable money.
Plan your monthly expenses judiciously
You need to meet several recurring monthly expenses. Many a time you may fall for impulsive buying and purchases that can be done without. It is advisable to control unwanted expenses and manage your resources well so that you don’t feel the pinch while paying your home loan EMIs.
Ensure timely EMI payments
Keep an adequate fund in your bank well before your EMI payment due date. If your EMI bounces due to insufficient funds, the lender will levy a penalty. In such a situation, even your credit score will diminish. You can also calculate the home loan EMIs through the home loan EMI calculator.
Choose the type of housing loan wisely
From a broad perspective, the interest rate on housing loans is classified as ‘fixed’ and ‘floating’. A fixed interest rate will remain constant throughout the loan tenure. A floating interest can change depending upon factors that impact the home loan market. In such a scenario, it is advisable to consult experts and arrive at a rational decision while choosing the type of loan.
Apply for Pradhan Mantri Awas Yojana (PMAY)
PMAY is a scheme offered by the government through which borrowers can enjoy interest subsidy on their EMIs. The eligibility of the borrower is based on his annual family income. The income slabs for PMAY eligibility are as mentioned below;
A home loan, when managed well helps you to own a home without hassles. Opt for it by ensuring that you plan your finances in an organized manner.