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Easy Ways To Reduce Your EMI Amount For First-Time Home Loan Borrowers
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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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Key Factors Affecting Your Home Loan Amount Eligibility
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IIFL Home Loans | May 12 11:58 AM
Home Loans
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Key Factors Affecting Your Home Loan Amount Eligibility
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IIFL Home Loans | May 12 11:58 AM
Home Loans
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Key Factors Affecting Your Home Loan Amount Eligibility
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IIFL Home Loans | May 12 11:58 AM
Home Loans
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Key Factors Affecting Your Home Loan Amount Eligibility
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IIFL Home Loans | May 12 11:58 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Affordable Home Loans In India And IIFL Home Loans
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Affordable Home Loans In India And IIFL Home Loans
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Affordable Home Loans In India And IIFL Home Loans
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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NCD Vs FD: What Is The Difference Between The Two?
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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NCD Vs FD: What Is The Difference Between The Two?
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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NCD Vs FD: What Is The Difference Between The Two?
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Home Loans
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Home Loans
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7 Expert Tips For First-Time Home Loan borrowers
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IIFL Home Loans | Nov 02 9:30 AM
Home Loans
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Home Loans
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Home Loan Balance Transfer - Step By Step Guide
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IIFL Home Loans | Nov 02 9:30 AM
Home Loans
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Home Loans
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Home Loans
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Steps To Close A Home Loan Without Complications
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IIFL Home Loans | Aug 24 9:48 AM
Home Loans
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Frequently Asked Questions: Post RBIs Moratorium On Loan
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IIFL Home Loans | Sep 05 12:15 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Policies Increase the Efficiency of the Work Process!
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
Tax Planning
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Home Loans
Tax Planning
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Hacked!!! Why Indian Sailors Get a Loan Rejection?
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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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.