Even after you’ve managed to get a loan for your new house, paying EMIs may not be a walk in the park. If you’re currently facing a mild or full-blown financial crisis, you may be finding it difficult to service your home loan EMIs. Of course, defaulting is not an option since it can have grave consequences on your credit score.
So, what can you do to repay your housing loan EMIs during a cash crunch? First of all, don’t panic! We present to you some feasible emergency options for repaying your loan EMIs on time.
1. Consider housing loan refinance
If you are struggling to pay your loan EMIs, you can opt for refinancing. This will involve transferring your existing housing loan to a different lender. Hence, you can repay the outstanding loan under new home loan interest rates and tenure, and avail of various other benefits. Choose a new lender carefully after checking their eligibility terms, required paperwork, and additional costs.
2. Reduce the EMI amount
In case your financial commitments are making it difficult for you to pay your home loan EMIs, you can consider reducing your EMI amount. To do this, you must consult your lender and convince them of your financial condition. Most lending institutions will understand and reduce the EMI amount if they feel your reason for not being able to afford the current amount is genuine.
3. Borrow from family and friends
Looking for support from your well-wishers in times of need is natural. See if you have family members or friends who are in a position to lend you money so you can manage to keep your EMI payments on track for some time. The biggest advantage of borrowing from your loved ones is that you can pay them back whenever you can and, sometimes, even without any interest.
Additional Read: How You Can Repay Your Home Loan Quicker
4. Liquidate your investments
Do you have any other investments that can come to your rescue? If yes, this is the time to liquidate them and use them as your home loan repayment options. Whether it is a contingency fund, fixed deposit or mutual funds, you can utilise them to repay your housing loan EMIs. You can also consider liquidating other assets such as gold jewellery to get out of a tight spot.
5. Ask your lender for a grace period
If you have recently lost your job or are facing some other crisis, you can seek a grace period from your lender. Many lenders provide a grace period of 60-90 days in dire situations to help borrowers pay the EMIs. This is clearly the last option that you must only use if you cannot arrange the EMI amount through other methods.
Additional Read: Home Loan Vs Personal Loan? Which One Should You Repay First?
Always practise good financial habits so you can meet your debt obligations regularly. If you are facing a crunch, delay all unessential expenses. Also contact your lender and discuss your options, if need be.
At Tata Capital, we understand your financial needs and do our best to fulfil them. Thus, we offer affordable housing loan EMI options that include various flexible plans. So, check your home loan eligibility on our website and rely on our expertise for your housing finance needs.