Relief From Home Loan Emi: If you are worried about home loan EMI, then there is no need to panic. Many people face this problem. Paying home loan EMI on time can be a challenging task, but with some smart planning you can make it easier. Here we are giving you some important tips, so that you can easily manage your home loan EMI.
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Make A Budget And Follow It
The first step is to make an accurate budget. Analyze your monthly income and expenses. It is important to know how much of your income is going into EMI. By making a budget, you can set your priorities and reduce non-essential expenses.
Create An Emergency Fund
It is very important to create an emergency fund. This fund will help you in unforeseen circumstances when your regular income may get affected. Generally, this fund should be enough to cover your three to six months of expenses. This will enable you to pay EMIs on time, no matter what financial crisis may arise. Pay attention to the following points to create an emergency fund:
- Analyse income and expenses: First of all, analyse your monthly income and expenses. It is important to know how much amount goes into your monthly expenses and how much you can save.
- Target for three to six months of expenses: The size of the emergency fund should be equal to your three to six months of monthly expenses. This period provides you with adequate security and helps you deal with any unexpected financial crisis.
- Save regularly: Every month, set aside a part of your income as regular savings. Make sure that this savings does not go into any other expenditure. For this, you can open a separate savings account.
- Keep the fund in a safe place: Keep the emergency fund in a place where you can withdraw it quickly and easily. A savings account or liquid funds may be better options for this.
- Use the fund only in emergencies: Use this fund only in emergencies. Do not use it for non-essential expenses.
- Review the fund regularly: Review your emergency fund from time to time. Update this fund as your income and expenses change.
- Ways to increase the fund: Consider other ways to increase your income, such as part-time jobs or freelance work, so that you can quickly increase your emergency fund.
Use Auto Debit
Allowing your bank to set up auto debit facility ensures that your EMIs are paid on time. This is a convenient way to avoid late payments and penalties. It also helps in keeping your credit score good.
Home Loan Emi Use Prepayment Options
If you have extra funds, you can prepay your home loan. This will not only help you finish your loan faster but also reduce the interest burden. Most banks do not charge any extra fee on prepayment, but check with your bank to make sure.
Review Interest Rates
It is important to review your loan interest rate regularly. Many times banks offer new and lower rates, which you can apply to your loan. If your loan interest rate is high, you can negotiate with your bank or get it transferred to another bank.
Increase Sources Of Income
If possible, try to increase your sources of income. You can earn additional income through part-time jobs, freelance work or investments. With additional income, you can pay your EMIs more comfortably.
Use Tax Benefits
Home loans also offer tax benefits. You can get tax exemptions under Section 80C and Section 24(b) of the Income Tax Act. Under Section 80C, you can get a deduction of up to Rs 1.5 lakh on the principal amount, while under Section 24(b), you can get a deduction of up to Rs 2 lakh on interest.
Seek Proper Financial Advice
Sometimes it can also be beneficial to seek professional financial advice. Financial advisors can analyze your financial situation and help you make a proper plan. They can also give you information about various investment options, so that you can increase your income.
Follow The Guidelines Of The Reserve Bank
The Reserve Bank issues guidelines related to home loans from time to time. By following these guidelines, you can avoid financial crisis. Also, read and understand the terms and conditions of your bank carefully.
Avoid Mental Stress
Finally, it is important that you avoid mental stress. Paying EMIs is a responsibility, but it is not good to take excessive stress about it. Resort to yoga, meditation and other stress-relieving measures.
Follow the above tips to pay EMIs on time and maintain financial stability. Managing home loan EMIs properly will help you to own your dream home.
Conclusion
Paying home loan EMIs on time can certainly be challenging, but it is possible to manage it with the right planning and vigilance. Steps like budgeting, creating an emergency fund, and using auto debit can maintain your financial stability. Reviewing interest rates, prepayment, and making the right use of tax benefits can help you reduce your loan tenure and interest. Professional financial advice and measures to avoid mental stress are also important. By adopting these tips, you can not only be free from the worry of EMIs, but also secure your dream home.
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