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Easy Ways To Reduce Your EMI Amount For First-Time Home Loan Borrowers
Are you planning to purchase your first home with the aid of a housing loan? Check out this post for simple ways to help first-time home loan borrowers reduce their EMI amount.
Purchasing a home is a dream shared by millions across the country. However, a common deterrent in fulfilling this dream is the outrageous real estate prices. Taking a home loan is a go-to option for the majority of first-time home buyers. Home Loan is an easy alternative where an individual can buy their home now with a commitment of payment of a small portion of amounts over a regular period of time, i.e. EMIs. EMIs or Equated Monthly Instalments are the monthly obligations that a customer has to serve over a period of time
In the article, we will discuss the ways available for first-time home loan borrowers to reduce the EMI amount. There are numerous ways to reduce EMI and ensure steady repayment while also being able to take care of other monthly expenses. Here are some of the things you can do-
1. Use PMAY Subsidy
Under Pradhan Mantri Awas Yojana (PMAY), first-time homebuyers can avail of interest subsidy on their home loans. The subsidy is available for people from-
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EWS or Economically Weaker Section: Households with cumulative income up to Rs. 3,00,00 per annum.
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LIG or Lower Income Group: Households with cumulative income between Rs. 3,00,001 to Rs. 6,00,000 per annum.
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MIG 1 or Middle Income Group I: Households with cumulative income between Rs. 6,00,001 to Rs. 12,00,000.
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MIG II or Middle Income Group II: Households with cumulative income between Rs. 12,00,001 to Rs. 18,00,000.
Apart from the income category, there are some other eligibility criteria that the borrower should fulfil to take advantage of the interest subsidy. All the borrowers eligible for the scheme will be provided home loans at a subsidized interest rate. As the home loan interest rate will fall, so will the monthly EMI amount.
But note that not every lender in the country is approved under the PMAY scheme. If you are a first-time homebuyer looking for a home loan, choose only a PMAY approved lender.
2. Consider a Bigger Down Payment
When you apply for a home loan, the lender will approve up to 70%-90% of the cost of the property. The borrower has to pay the remaining amount from their own funds
However, borrowers do have the option to make a bigger down payment. This will allow you to reduce the total amount you need to borrow from the lender.
As EMI is calculated based on the loan amount, interest rate, and loan tenure, reducing the loan amount by making a bigger down payment can help reduce the EMI. Lenders also offer a part-prepayment facility where borrowers can make additional payments towards the loan to reduce the balance amount and monthly EMIs. The good news is here is that majority of the home loans are free from pre-payment charges.
3. Increase the Repayment Tenure
Home loans are generally offered for a tenure of 15 to25 years. As compared to a home loan of Rs. 50 lakhs taken for 15 years, the monthly EMIs would be lower for Rs. 50 lakhs taken for 20 years.
While this will increase the total interest outflow of the loan, it is still an effective way to reduce your monthly EMIs.
Once your financial condition upgrades, you can again reduce the tenure.
The loan tenure depends on the eligibility of the borrower. So, it is possible that your lender might not allow you to increase your home loan tenure. But if you have this facility, you can use it to reduce the EMI amount.
4. Choose a Lender Carefully
A high degree of wisdom is to be applied while choosing a lender. If you are still browsing through lender websites to apply for a home loan, ensure that you have thoroughly compared the top options before deciding. Focus on factors such as the reputation of the lender, interest rate, processing fee, tenure, and repayment flexibility to choose the best.
Financial institutions now offer home loans at highly competitive interest rates and with features such as paperless document processing and quick approvals to salaried and self-employed applicants. Look for a reputed financial institution for your home loan to ensure that your long-term association is satisfying and stress-free. If you are planning to buy a home, it is generally recommended that the home loan EMI amount is restricted to 30%-40% of your monthly income. If you are concerned about EMI payments, use the suggestions discussed in this post to reduce the amount so that you can pay your monthly EMIs while also effortlessly managing other personal and household expenses.
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10 Things You Must Know About Home Loan EMI Calculator Read More
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10 Things You Must Know About Home Loan EMI Calculator Read More
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6 Things To Consider While Choosing Your Home Read More
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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You Need Good CIBIL Score for Home Loans Read More
IIFL Home Loans | Aug 28 4:00 PM
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You Need Good CIBIL Score for Home Loans Read More
IIFL Home Loans | Aug 28 4:00 PM
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Impact of Technology on Home Loans Read More
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Impact of Technology on Home Loans Read More
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Impact of Technology on Home Loans Read More
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How NRIs Finance their Dream Homes? Read More
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How NRIs Finance their Dream Homes? Read More
IIFL Home Loans | Aug 11 1:30 PM
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How NRIs Finance their Dream Homes? Read More
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Here are 6 ways to Save Money on Your Home Loan Read More
IIFL Home Loans | Aug 05 12:15 PM
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Here are 6 ways to Save Money on Your Home Loan Read More
IIFL Home Loans | Aug 05 12:15 PM
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The Importance of Home in Your Daily Lives Read More
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The Importance of Home in Your Daily Lives Read More
IIFL Home Loans | Jul 29 3:30 PM
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5 Hacks for Improving the Home Loan Eligibility Read More
IIFL Home Loans | Jul 18 3:45 PM
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5 Hacks for Improving the Home Loan Eligibility Read More
IIFL Home Loans | Jul 18 3:45 PM
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How to Apply for a Home Loan with Low Income? Read More
IIFL Home Loans | Apr 23 2:45 PM
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How to Apply for a Home Loan with Low Income? Read More
IIFL Home Loans | Apr 23 2:45 PM
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How to Qualify for a Home Loan? Read More
IIFL Home Loans | Apr 22 3:45 PM
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How to Qualify for a Home Loan? Read More
IIFL Home Loans | Apr 22 3:45 PM
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Whether taking home loan is a wise decision or not? Read More
IIFL Home Loans | Apr 14 2:15 PM
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Whether taking home loan is a wise decision or not? Read More
IIFL Home Loans | Apr 14 2:15 PM
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Whether taking home loan is a wise decision or not? Read More
IIFL Home Loans | Apr 14 2:15 PM
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Whether taking home loan is a wise decision or not? Read More
IIFL Home Loans | Apr 14 2:15 PM
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Yes, Every Home Loan Needs Insurance. Here Why Read More
IIFL Home Loans | Apr 14 11:30 AM
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Yes, Every Home Loan Needs Insurance. Here Why Read More
IIFL Home Loans | Apr 14 11:30 AM
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Yes, Every Home Loan Needs Insurance. Here Why Read More
IIFL Home Loans | Apr 14 11:30 AM
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Yes, Every Home Loan Needs Insurance. Here Why Read More
IIFL Home Loans | Apr 14 11:30 AM
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
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10 Home Loan Terms You Should Know Read More
IIFL Home Loans | May 23 1:00 PM
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10 Things You Must Know About Home Loan EMI Calculator Read More
IIFL Home Loans | Oct 05 12:15 PM
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11 tips for buying property Read More
IIFL Home Loans | Oct 21 2:45 PM
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5 Broken Promises In The Real Estate Sector Read More
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5 Common Misconceptions About Home Loans Read More
IIFL Home Loans | Feb 21 12:45 PM
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5 Growing Job Opportunities In Fintech Domain Read More
IIFL Home Loans | Sep 14 8:53 AM
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5 Hacks for Improving the Home Loan Eligibility Read More
IIFL Home Loans | Jul 18 3:45 PM
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5 Things to Consider Before Refinancing a Home Loan Read More
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6 Reasons To Smile For Home Buyers Read More
IIFL Home Loans | Nov 15 12:45 PM
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6 Things To Consider While Choosing Your Home Read More
IIFL Home Loans | Oct 01 11:45 AM
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7 Expert Tips For First-Time Home Loan borrowers Read More
IIFL Home Loans | Nov 02 9:30 AM
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7 Remedies Of Your Home Loan Problems Read More
IIFL Home Loans | Feb 07 10:15 AM
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Advantages to Couples Jointly Owning Property Read More
IIFL Home Loans | Feb 21 5:30 PM
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Advantages to Women Applying for Home Loans Read More
IIFL Home Loans | Jan 23 2:00 PM
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Affordable Home Loans In India And IIFL Home Loans Read More
IIFL Home Loans | Nov 23 4:12 AM
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Ask Yourself What Is Home Loan Refinancing Read More
IIFL Home Loans | Feb 07 10:45 AM
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Benefits Of Home Loan Balance Transfer Read More
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Benefits Of Joint Home Loan Read More
IIFL Home Loans | Oct 09 4:45 PM
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Best Tips To Get Lowest Home Loan Interest Rates Read More
IIFL Home Loans | Oct 03 12:15 PM
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Best Ways To Plan Home Loan Down Payment Read More
IIFL Home Loans | Aug 27 3:00 PM
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Calculate Your Eligibility With Home Loan Calculator Read More
IIFL Home Loans | Feb 07 11:00 AM
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Do You Know the 6 Types of Mortgages? Read More
IIFL Home Loans | Apr 27 2:00 PM
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Franking and Stamping: What the difference? Read More
IIFL Home Loans | Aug 14 2:45 PM
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Frequently Asked Questions: Post RBIs Moratorium On Loan Read More
IIFL Home Loans | Sep 05 12:15 PM
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Guidelines for Affordable Home Loan Balance Transfer Read More
IIFL Home Loans | Jul 12 6:18 PM
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Hacked!!! Why Indian Sailors Get a Loan Rejection? Read More
IIFL Home Loans | Oct 21 2:15 PM
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Here are 6 ways to Save Money on Your Home Loan Read More
IIFL Home Loans | Aug 05 12:15 PM
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Home Loan - Need or Necessity Read More
IIFL Home Loans | Jul 07 3:15 PM
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Home Loan Balance Transfer - Step By Step Guide Read More
IIFL Home Loans | Nov 02 9:30 AM
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How NRIs Finance their Dream Homes? Read More
IIFL Home Loans | Aug 11 1:30 PM
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How to Apply for a Home Loan with Low Income? Read More
IIFL Home Loans | Apr 23 2:45 PM
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How To Apply For A Home Loan? Read More
IIFL Home Loans | Feb 07 11:15 AM
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How to Avail Loan against Property for Business Read More
IIFL Home Loans | Jul 06 7:14 AM
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How to Claim Tax Benefits on a Second Home Loan Read More
IIFL Home Loans | Aug 04 6:38 AM
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How To Claim Tax Benefits On Joint Home Loans? Read More
IIFL Home Loans | May 21 2:45 PM
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How to E-Apply for a Home Loan? Read More
IIFL Home Loans | Jun 07 4:00 PM
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How To Get A Home Loan Approved? Read More
IIFL Home Loans | Feb 07 11:30 AM
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How To Make Your Home Khoobsurat? Read More
IIFL Home Loans | Dec 16 11:30 AM
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How to Qualify for a Home Loan? Read More
IIFL Home Loans | Apr 22 3:45 PM
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Impact Of COVID - 19 On Finance Industry Read More
IIFL Home Loans | May 27 2:45 PM
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Impact of Technology on Home Loans Read More
IIFL Home Loans | Aug 23 3:00 PM
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Income Tax Benefits on Home Loans Read More
IIFL Home Loans | Jul 07 12:00 PM
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Jhatpat Home Loans: Fast Loan with No Hassle Read More
IIFL Home Loans | Sep 08 6:15 PM
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Key Factors Affecting Your Home Loan Amount Eligibility Read More
IIFL Home Loans | May 12 11:58 AM
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Myth Vs Facts - RBI COVID-19 Moratorium Read More
IIFL Home Loans | May 27 2:45 PM
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NCD Vs FD: What Is The Difference Between The Two? Read More
IIFL Home Loans | Nov 23 4:12 AM
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Opinion: Why To Go For A Joint Home Loan Read More
IIFL Home Loans | Aug 11 8:53 AM
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Pointers For First-Time Home Buyers Read More
IIFL Home Loans | Apr 25 3:00 PM
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Policies Increase the Efficiency of the Work Process! Read More
IIFL Home Loans | Jun 01 12:45 PM
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SIPs Can Help You to Pay Your Home Loan Interest Read More
IIFL Home Loans | Nov 15 1:00 PM
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Steps To Close A Home Loan Without Complications Read More
IIFL Home Loans | Aug 24 9:48 AM
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Success Tips For Young First-Time Home Buyers Read More
IIFL Home Loans | Oct 03 11:45 AM
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The A-Z of Housing Loan Top-Ups Read More
IIFL Home Loans | Jun 02 7:21 AM
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The Importance of Home in Your Daily Lives Read More
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The Solution To Homelessness Read More
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Three Ways To Reduce Home Loan Burden Read More
IIFL Home Loans | Aug 14 5:45 PM
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Tips To Have A 'Feel-Good' Home Read More
IIFL Home Loans | Aug 27 3:30 PM
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What Are The Benefits Of Buying A House in 20s Read More
IIFL Home Loans | Apr 06 5:45 PM
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What are the Best Real Estate Areas in Bangalore? Read More
IIFL Home Loans | Jul 07 2:30 PM
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What Is a Pre-approved Home Loan and Its Benefits Read More
IIFL Home Loans | May 15 5:28 AM
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What Is Equitable Mortgage Home Loan? Read More
IIFL Home Loans | Mar 08 4:15 PM
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What Is The Right Age To Buy A Home? Read More
IIFL Home Loans | Jan 31 4:30 PM
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Whether taking home loan is a wise decision or not? Read More
IIFL Home Loans | Apr 14 2:15 PM
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Why Do You Need A Joint Home Loan? Read More
IIFL Home Loans | Feb 10 11:45 AM
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Yes, Every Home Loan Needs Insurance. Here Why Read More
IIFL Home Loans | Apr 14 11:30 AM
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You Need Good CIBIL Score for Home Loans Read More
IIFL Home Loans | Aug 28 4:00 PM
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Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.