Change Your Repayment Schedule - Home Loan Blog - Tata Capital

How to Lower your Initial Home Loan EMI & Change your Repayment Schedule?

Mar 08, 2017

When you start your career, you earn very less. Also, you don't have much idea about how to manage your money and how to control your expenses. The result is that you are afraid of getting into long-term financial commitment like home loans.

But buying a house is a necessity. You can delay it but in general, it's unavoidable. Also, the more you delay; the cost of house will increase all the more.

So, how to solve this problem?

The answer lies in customization of your loan repayment schedule according to your needs.

You can't pay very high EMIs initially? Done

You can increase your EMIs in future? Done

Sounds surprising! Isn't it?

Tata Capital has made it possible to put in place a repayment schedule that is tailored according to your needs.

This facility is known as the Flexi Step-Up EMI. The EMIs increase with each passing year, in line with expected increase in borrower's income. What this does is that it reduces the burden on borrower during initial years when the income is low. As the income increases, so does the EMI.

Obviously, this option is suitable for people like you, who are young and earn less now but clearly foresee regular increase in future income.

There are other useful options as well. It's possible that nature of your job is such that you are regularly paid additional amounts in form of incentives. These incentives are more or less predictable. So you can even opt for a Flexi Bullet EMI option, where you will be allowed to prepay a fixed amount at periodic intervals and also benefit from lower monthly EMIs after each prepayment. Then there is the Flexi Balloon EMI option, where you can make a large lumpsum repayment at the end of the loan tenure, in return of paying a small EMI during the rest of the tenure.

So as you can see above, there are various options that can come in handy if you don't want to be burdened by a very large EMI initially.