"A home loan can be a liability if not managed efficiently. It is one of the loans with probably the longest tenures. Here are some ways in which you can try to reduce the burden.
1. First try changing the regimen of your interest. After a while most forget how that changes going forward. EMI has close dependence on the marginal cost of funds based lending rate (MCLR), tips on changing from time to time. So check on this and switch to newer regimes. Increase the chances of interest rates coming down.
2. You can even try transferring the loan to a new lender. The interest rates vary greatly among different institutions. Always go with lenders providing low interest rates like Shriram City, where the interest rates are around a meagre 10%. You should compare your interest rate with the competitor and choose accordingly.
3. Shift to a loan with a floating rate if you have one with fixed rates. Floating interest rates are relatively lower, helping you significantly countdown the costs.
4. If your financial condition allows, make a partial prepayment. Loans with floating interest rates allow prepayment which adjust the tenure of the loan. So the loan gets paid quickly.
5. In addition to these ways you can opt for an extension of the tenure. This can also relieve you of the added financial stress.
For more information visit:- https://www.shriramcity.in/home-loan
