Personal Finance   Sponsored Post
Simple Tips to Tackle Interest Rate Hike on Your Home Loan
Your home loan interest rate usually depends on your lender, the central bank’s policies, and the current economic climate in the country. During times of inflation, the Reserve Bank of India (RBI) may hike the base rate, which may impact your home loan interest rate and subsequently your EMIs or your tenor.
 
Longer the tenor, higher the amount you pay towards your interest on the home loan. Here are a few tips to help you manage the home loan interest rate hike.
 
Consider negotiating the loan terms with your lender
 
You can try negotiating the loan terms that your lender puts forth. Instead of agreeing with the repayment burden when there is an interest rate hike, it may help to speak to your lender first. A home loan EMI calculator may help you check the likely impact of the interest rate hike on your tenor and EMIs. Compute to see what suits your repayment schedule better. You can then negotiate with your lender asking them to adjust the home loan interest rate hike with your tenor or EMIs. Since the home loan amount is huge, increasing the tenor by 1-2 years owing to a spike in interest rate will decrease your burden momentarily. But remember, the longer you take to repay your loan, the higher will be your overall interest payment for the loan. So, ask your lender if they can consider restructuring your home loan on terms that suit you.
 
Consider prepaying a part of the loan
 
The EMI for your home loan consists of two parts—interest on the principal and the principal amount. If you face an interest hike during repayment, you can consider pooling 
together your extra income, bonus from your employer, and your savings or investment earnings. Use this handy cash to prepay a bigger chunk of your loan. This will immediately decrease your main principal amount and reduce your EMIs. So the new home loan interest rate will not be applicable on your whole borrowed sum. 
 
A word of caution: Take this step only when your prepayment amount brings you a bigger relief and considerably reduces your tenor or EMIs. You can use the home loan prepayment calculator to determine the changes you will face owing to prepayment on your loan. Dip into your savings only when you are convinced that it is a viable option.
 
Consider home loan refinancing with a different lender
 
In case you face a rate hike on your home loan, you can try getting your loan refinanced with another lender, say an non-banking finance company (NBFC). Lenders like Bajaj Finserv offer a Home Loan Balance Transfer facility, where you can switch your existing home loan without any hassles. This will not only bring down the interest rate on your home loan but also give you access to additional benefits. These include features like the Flexi Hybrid facility, 3 EMI-holiday, top-up loans, nil foreclosure charges and more.
 
As a start, you should consider the possibility of a rate hike right when you avail a home loan. Basing your choice of a lender on the interest perspective will help you start your loan journey with ease.
 
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    COMMENTS

    manishbajaj649.mb

    4 months ago

    If there is no woman in my house and later he wants to take a home loan, then he can take advantage of the Pradhan Mantri Awas Yojana subsidy.

    Ravi Verma

    11 months ago

    I got my housing loan from SBI under staff housing loan scheme in 2012 but did not get the possesaion till now. Would I be eligible to claim PM Interest Subsidy in my housing loan

    RAMNIWAS GUPTA

    1 year ago

    Dir.sir
    My home loan is Magma finance ,
    Plz .my home subsidy approval not
    Credited my loan amount plz

    Ashok Shukla

    2 years ago

    Home lone give

    PATHIK

    2 years ago

    my uncle has taken loan in 2004, with roi 7.75%, he never checked today icici bank is charging them 13.85%, in his loan paper tenure is 240 months after almost 14 years they are saying you still have to pay for 145 months, i am moneylife customer learned lot about finance thorugh your website, this cheating according to me, now they are saying if you want to reduce rates you have to visit their branch, they are not provide call records also, i have taken conversation id its - sr582296744, can you help me in this case, print some article how housing loan customers are getting cheated, we pay EMI on time not even single emi has been bounced in last 14 years...!

    Personal Finance   Sponsored Post
    Secure your Child's Future with a Personal Loan for Higher Education
    Every parent wants the best for their child, especially when it comes to his or her education.
     
    But a great degree at the best institutions can be quite expensive, especially if you are looking at universities abroad. Costs like books, practicals, tutorials, and living expenses drive these costs even higher. And experts advise dipping into your savings may not be the best thing to do.
     
    You can overcome this financial hurdle by applying for a Higher Education Loan. It is an unsecured form of credit that can cover the finances of your child’s education at a reputable institute that will add to his or her profile, and employment skills for the future. 
     
    Here’s a look at some benefits of availing a Personal Loan for higher education:
     
    You can manage more than just tuition fees
    The cost of financing your child’s higher studies may be more than what you have saved up for. Also, dipping into your savings to tackle the high cost is not a wise decision. A Personal Loan for higher education will help you finance the admission and tuition fees as well as other expenditure like applying for a visa, travel, accommodation and lifestyle needs. Moreover, you can avail a large sanction of up to Rs.25 lakh on this loan without pledging any collateral or asset.  
     
    You can stay a step ahead with the Flexi Loan facility
    Higher studies in India or abroad can be heavy on your pocket and can come with unexpected cash requirements arising due to medical emergencies, an extra course, or last-minute travel. Instead of borrowing a higher loan amount which entails a higher Personal Loan interest rate, you can choose a loan that offers you the Flexi Loan facility. This option allows you to borrow as per your needs from your sanctioned loan amount and pay interest only on the amount you utilise. Additionally, you can also choose to pay interest-only EMIs and repay the principal at the end of the tenor. This will reduce your EMIs by up to 45% and help you cater to unforeseen expenses with ease. 
     
    Quick loan processing helps you with swift admission process
    Many lenders today offer doorstep-document pickup facility for availing a higher education loan. This hastens the loan approval and verification process to a large extent. The disbursal of money to your account is done within 24 hours of approval. This enables you to pay for your child’s spot in a top university within the due date. With this assurance, you can also begin the visa application formalities and flight bookings at the earliest to save time and money.  
     
    You can track your expenses and debt with an online account
    The best Personal Loans today offer the convenience of online account management. This means that you can access your account from anywhere in the world and at any time. You can also use this online account to track your expenses, so that you can always stay prepared for the upcoming EMI payment dates. Moreover, you can easily download your loan statements in one click whenever you want to evaluate your credits with respect to your income. All this saves a lot of time for you.
     
    Additionally, applying for pre-approved offers will help you access loan deals that fit your financial requirements and get Personal Loan approvals easily. So, check the offers available with top lenders before applying for a Personal Loan that perfectly suits your pocket and your child’s needs. 
     
    Lenders like Bajaj Finserv offer a Personal Loan for Higher Education that can provide you with financing up to Rs.25 lakh at nominal interest rates, along with simple eligibility criteria, a Flexi Loan facility, and disbursal in just 24 hours. 
     
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    Personal Finance   Sponsored Post
    Why You Should Take A Personal Loan For Home Renovation
    You may want to renovate your home to carry out essential repairs and maintenance work or to improve its aesthetics and your comfort. Both can come with a heavy price tag. In order to meet the expenses without any compromise, consider applying for a home renovation loan. Here’s how renovating your home can add value to it.
     
    Renovating Your Home Adds To The Property Value
     
    Even though you may not consider selling your property at the moment, it will be profitable to add to its value while the option is still economical. Renovating your home makes your home as good as new. This is exceptionally useful during a time when the real estate prices are on the rise.
     
    Home Renovation Is Essential For Maintenance 
     
    Whether you intend your property to be self-occupied or leased out, it is essential you maintain your home well. This avoids instances of future repairs that can be even costlier. 
     
    Renovating your home on time strengthens it while upgrading its aesthetics.
     
    Customised for home remodelling and repair, the Home Renovation Loan from NBFCs offers you convenience in every way. Take a look at a few benefits of availing this loan:
     
    1. You Can Avail A Collateral-free Loan
     
    You can avail up to Rs.25 lakh at low interest rates without having to pledge a personal asset as collateral. You can use the EMI calculator to check the affordability of the same. 
     
    2. Simple Application Process
     
    You can also benefit from a quick online application, approval within 5 minutes and disbursal of funds within 24 hours of document verification. Availing the home renovation loan is effortless with simple home renovation loan eligibility criteria and minimal documentation requirements. 
     
    3. You Can Take Care Of Unexpected Expenses 
     
    Even the most in-depth planning cannot give you the exact cost of your home renovation. This is because all contractors, plumbers, and electricians will only give you an estimate. In an event of catering to the needs of one room, you may be advised to waterproof the adjoining room or fix internal leakage in the external walls. In order to combat such unplanned expenses, you may consider taking a bigger loan amount. To avoid such a costly affair and increased EMIs, choose the Flexi Loan facility. This allows you to borrow as you need multiple times from your sanctioned limit, while you pay interest only on the amount you have used. Furthermore, you can choose to pay interest-only EMIs and repay the principal amount at the end of the tenor. Prepayments of this facility come with no extra charge.
     
    4. You Can Track Your Loan Details Online
     
    Taking a best Personal Loan for home renovation from reputed lenders means you will be able to access all your loan information in an instant using the customer portal. All you need to do is log in with your customer ID and password. Tracking your expenses online can help you avoid missing out on payments. In turn, this, or the successful repayment of your Personal Loan increases your credit score. An increased credit score helps you achieve higher loan amounts at lower interest in the future if the need for the same arises. 
     
    For better planning of your home renovation project, avoid common home renovation mistakes. You can also use a home renovation loan calculator to plan repayment in advance, so that it stays within your budget.  
     
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