Have you calculated your loan against property eligibility and all set to apply for it?
Congratulations, the loan against property facility helps you cover your multiple needs as you get a higher amount at a lower rate of interest. As a result, you get to pay a lower EMI as the loan is also a secured one.
Still, if you want to reduce the EMIs for the loan against property, then you can follow some smart ways to do that.
Read on this post and know about some smart ways to manage your loan against property account so that it helps to lessen the EMIs.
Here’s How You Can Smartly Manage A Mortgage Loan Account
Pay A Higher Emi If You Can
Yes, it’s known that we are discussing reducing the loan against property EMI, but paying a higher a higher EMI can also help. Paying higher EMIs will help you close the loan before the scheduled tenor. By paying a bit higher EMIs, you can easily shave off a considerable number of months and years from the loan duration. By closing the loan account earlier, you can also save on the compounding interest amount that you need to pay over a longer tenor. Overall, it means saving smartly while paying a bit higher than normal EMI amount per month.
Go For A Partial Prepayment
The concept is simple when it comes to stretching your loan amount over a longer tenor – the longer you will take to repay it, the more interest you will pay. In this context, the partial prepayment is a great way to lower your loan tenor and EMIs. There are many benefits of opting for a partial prepayment – lenders do not charge any amount for allowing you to do that, and the prepayment amount could be as low as Rs.10,000. Hence, whenever you receive big gains, yearly bonus or something else, ensure to use such amount to make a prepayment and reduce your loan EMIs.
Refinance Your Mortgage Loan
If you don’t think any of the discussed tips working in lessening the burden of your loan in the form of lower EMIs, then you can go for the refinancing facility. Under this, you may switch your existing loan to a lender offering a lower interest rate. Hence, when you do that, you will be able to reduce your loan EMIs manage your monthly expenses better. However, ensure to check the difference between the processing fee charged by the current lender and the gains made. If the processing charges are more than what you will gain to reduce the EMIs, don’t opt for it.
Some of the easy ways to help you manage your loan against property account are now discussed. You can implement such tips as per your needs and other preferences.
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