Interest rate is unavoidable if you have applied for a loan. T
hough loans make it easier for us to buy and invest on necessities, repaying the same is nothing less than a task. Home loans usually come with high rate of interests, which make the process of repayment an ordeal for the bearer. Although many banks and financial institutions take special measure to curb out the problems faced by the bearers, loan repayment is still a huge commitment for majority of the population across the globe.
Let’s be honest, we cannot reduce the interest rates of home loans, but through some smart management skills, we can definitely minimize the impact of the interest rate of loans, so that the burden of repayment is lessened considerably.
Let’s read on-
> If the thought of repayment of the loan worries you, it is advisable for you to decrease the amount of the loan that you are applying for. Applying for a smaller amount of loan will not only reduce the percentage of the interest levied, but it will also help in the process of repayment easy.
> The best way to reduce the woes of loan repayment is to make sure that it is returned at the earliest. The longer it takes to repay the loan, the higher the interest rates that are levied.
> Loans are payed in EMIs, and the more the number of EMIs are, the lesser will be the interest rate. Also, increase in the number of EMIs will reduce the loan amount significantly, making it easier for the bearer to repay the loan in advance.
> In continuation to the earlier point, it is extremely essential to pay bigger EMIs to reduce the interest rate of home loan. Ensure that with every EMI that you pay, there is an increase of 5-7%.
> The next point would be to opt for home loans that levy low interest rates. While all banks and financial organizations are regularized under the state or central government, many of them lend out home loans on minimal interest rates, citing some terms and conditions. If you are on the verge of applying for a home loan, be smart to look out for such offers.
> One thing to keep in mind while applying for a home loan is to choose a shorter tenure. The calculation behind it is that the shorter the tenure is, the more you pay. The more you pay, the sooner you will done with the process of repayment of the loan.
> In the end, the most vital advice is to stick to your budget. Never apply for a loan that is beyond your reach. It will only create distress for you in the long run.
Let us know what you think of our list.