Housing finance can take off the pressure from your savings and help you finance your dream home with ease. However, the monthly home loan EMIs can be a burdensome financial obligation during a financial crisis. Read the article to learn a few techniques that will help you manage your housing loan EMIs during a cash crunch.
Ways to manage your EMIs during financial distress
When under a tight spot financially, homebuyers may struggle to pay off their EMIs. Here are some tips on how to manage home loan EMI along with your monthly expenses during financial distress.
Reduce your EMI amount
An excellent way to manage your monthlyloan instalments during a crisis is to get your EMI amount reduced. If your financial commitments are making it hard to afford the EMIs towards your housing loan, you must consult your lender. Most lending institutions allow you to reduce your monthly instalments if you are unable to pay the current amount.
Additional Read: Tips to Reduce Home Loan EMI
Use your contingency funds savings
After taking care of your mandatory expenses, it is prudent to keep some money aside. This practice is also known as creating an emergency or contingency fund. During a financial crisis, you can use these funds to ensure that your EMIs are not delayed.
Besides, you can also withdraw funds from other savings options such as fixed deposits, recurring deposits, etc., to avoid defaulting on your home loan.
The simplest way to manage your monthly instalments is to spend wisely during a financial emergency. Delay any unnecessary expenses and focus on getting through your financial obligations. You can also consult a financial advisor and ask for guidance on how to navigate through such a crisis.
Lastly, if you are facing major financial distress, you can opt for refinancing. Refinancing requires you to borrow another loan from a different lender to pay off the existing one. You can opt for a loan with longer tenure and a smaller EMI amount to make it easier to pay off.
However, make sure to compare and consider the interest rates before selecting a lender. Using an online home loan EMI calculator can be of great assistance to get a precise estimate of your future EMIs and interest payable.
Additional Read: How to Make Financial Planning Easy with Home Loan EMI Calculator
Over to you
If you are facing a financial crisis and struggling to pay your EMIs, contact your lender straight away. At Tata Capital, we understand your housing needs and offer flexible repayment options to lessen your financial burden.
What’s more, Tata Capital offers unique features such as step-up flexi EMI plans and accommodating prepayment options to make your borrowing experience easier. You can even choose your loan amount, tenure, and the EMI period at your convenience. With years of experience under our belt, we are a reliable housing finance provider. You can go through our easy home loan eligibility terms before applying.
So, give us a call today or visit our website to get in touch and make your housing dreams a reality!