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Your Queries: If you stop paying EMI on a home loan, you may be sued by your bank

Can I stop making EMI payments on a home loan, if I don’t get the possession by the builder?

There are two enforceable agreements between the parties here. The builder and the buyer enter into a selling agreement. Another participant in the loan arrangement with the buyer is the home loan provider. If the builder has not yet granted the buyers ownership, they may go to court as a group to seek justice.

Your Queries: If you stop paying EMI on a home loan

If the EMI is stopped, the debt goes into default, and the borrower’s CIBIL rating decreases. The bank has mortgage rights to the proposed property, and if the bank does not get a valuation from there, there is the risk of further litigation with the bank.

I have a mortgage for a house with HDFC Ltd. Now I’m looking for a second loan. Can I payback the top-up loan since I anticipate to get money after a year?

Yes, you may go ahead and pay off in the loan account if you have extra cash.

Should I get a house loan that is tied to the repo rate or a loan from an HFC?

It is better to get a loan that is tied to the repo rate.

Your Queries: If you stop paying EMI on a home loan, you may be sued
What is the maximum loan repayment period for an education loan? Can I get a tax break for the whole term of the loan?

A typical student loan has a maximum repayment period of seven years. The tax benefit is the deduction of loan interest from the taxable income of the individual paying the EMIs. If the father pays the EMI, he is eligible for the tax break. Once the student begins working and paying the EMI, they may claim the tax advantage immediately.

My daughter attends college and makes money through tuition. Can she get a vehicle loan?

The borrower must demonstrate his or her capacity to repay the car loan by providing proof of income. Normally non-salaried people shoe their latest three years’ income tax returns for this purpose.

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Your car insurance claims can be rejected! Here’s when.

We all expect our car insurance carrier to cover any claims we make during the policy’s term. The majority of us, however, do not read the policy paper and are uninformed of the policy’s scope and exclusions. Due to this tiny print, a claim may be denied, resulting in disappointment and financial loss. Here are some of the reasons why a claim might be denied or not completely paid:

car insurance claims can be Rejected

IDV (Insured Declared Worth)

IDV is the value of your car at the time of purchase. It is the amount you will receive if your vehicle is stolen or completely destroyed. You must obtain the right IDV, which is closest to the cost of the market value of your car; any undervaluation or overvaluation may have an influence on your claim in the future.

No Claim Bonus (NCB)

This is a reward (discount) offered to the insured by the insurance company at the time of policy renewal for not filing any claim requests during the policy year. It is critical to declare the correct claim status in order to receive accurate NCB within the range (typically between 20 and 50 percent), as incorrect declaration can result in a claimed conflict. A false NCB declaration could jeopardize the settlement of a claim.

Delay in notifying the insurance company after an accident

There is a deadline by which you must notify the insurance company. Any inordinate delay in notifying the insurance company can result in the claim being denied. The policy contract instructs the policyholder to notify the insurer as soon as the incident occurs (accident). It should be alright after a few days from the accident.

Driving without a licence or with an expired licence

The driver of the vehicle must have a current and valid driver’s license. For example, if he possesses a two-wheeler license but undergoes an accident while driving a car, his claims may receive a rejection. Moreover, the driver’s license shall not expire and should be valid at the time of the accident.

Your car insurance claims can be rejected

Lack of insurable interest

This indicates that the owner has not transferred the registration and insurance to his name. If your car is involved in an accident in this situation. The claim will be denied by the insurer because there is no legal transfer of ownership through the RTO. In simple words, the policyholder must be the registered owner of the vehicle.

Modifications to the vehicle

Any modification to the vehicle, such as installing a CNG kit, installing a music system, or installing an amplifier, should be reported to the insurer. Moreover, the policyholder should pay an additional premium to have the alteration insured. If you do not declare these modifications, it is possible that the insurer may reject your claim.

Misrepresentation of Facts

When purchasing your policy, you must be honest about the state of your vehicle, your previous insurance history, and so on. Fraudulent declarations can lead your policy to become invalid. Thus, canceled by the insurance company.

Failure to renew your car insurance policy on time

If you do not renew your car insurance policy on time, your coverage will lapse. If your car meets an accident in this situation, the insurance company will not evaluate the claim and will reject it. You will be responsible for any costs out of your own pocket.

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Your Money: Five tips to get the right two-wheeler loan

Do you want to buy your dream bike but aren’t sure how to come up with the money? Set aside your concerns. You can get a two-wheeler loan to help you fund your goal of owning a bike. Here are five things to think about before you apply for a two-wheeler loan to make sure you get the best offer.

two wheeler loan

Conduct research about the two wheeler loan

The loan terms and conditions vary depending on the banking institution. In addition, interest rates, maximum loan amounts, and loan-to-value (LTV) ratios vary by financial institution. Be ready to pay various expenses associated with two-wheeler loans, such as processing fees, when applying for a loan.

Check with different lenders for hidden provisions that may affect your loan application form. You might even locate a financial institution that charges minimal or no costs for loan processing or portion prepayment if you do your homework.

Loan Amount

Many financial organizations provide loans up to 90% to 95% of the value of a motorcycle. The LTV ratio is determined by a variety of factors, including the type of two-wheeler and the applicant’s background.

Varying lenders provide different LTV ratios and loan amounts. You don’t want to find yourself in a scenario where your chosen bike is worth Rs 1,00,000 but the lender will only grant you Rs 20,000. As a result, choose one that disburses a loan quantity that is suitable for your requirements. The loan amount should never be over-leveraged when choosing a financial institution. You can find yourself in a situation where the available loan amount exceeds your requirements. In such circumstances, the lender may try to get you to buy a more expensive bike by requiring you to take out a larger loan. Going overboard with your spending, on the other hand, can cost you money in the long run. You may find it difficult to repay your monthly EMI, causing a blemish on your credit report.

loan facilities at low interest rates for two wheelers

Affordable interest rate of the two wheeler loan

The applicant’s income, age, employment status, and credit history are used by financial institutions to evaluate loan eligibility and interest rates for two-wheeler loans. Although you do not always need a good credit past to get a two-wheeler loan, having a good credit history will assist you to get a two-wheeler loan with a low-interest rate.

Compare the Annual Percentage Rate (APR) offered by various financial institutions, as it includes the prices and expenses associated with obtaining two-wheeler financing. As a result, it is advisable to select a financial institution that provides a two-wheeler loan at a reasonable interest rate.

Repayment options

Examine the many repayment alternatives offered by various lenders. The larger the interest component, the longer the tenure. Choosing a plan with flexible loan EMIs will help you to pay off the loan swiftly while never missing an EMI payment. For more such updates, keep watching this space!

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Your Queries: Loans – You need to submit proof of renovation for a top-up home loan

Are you planning to apply for a loan, or you have an ongoing home loan and need some better cost-saving suggestions? In this article, we will address some of the FAQs we have received.

01. Shubham Kumar

After ten months, my house loan EMI will come to an end. I'd want to apply for a second loan to help me renovate my home. What are the terms of a top-up loan, and should I obtain a loan against my home once my present loan is paid off?

When it comes to interest rates, a top-up loan is a better option because a loan against a property normally has a higher interest rate. Take a home renovation quote and submit it to your current loan provider right away. The loan will be sanctified according to the same procedures that apply to residential loans. Once you obtain such a loan, you must provide proof of completed renovations.
home loan policy

02. Manoj Patel

I took out a home loan for a building that is still under construction. Construction took eight years to complete. Is it possible to claim a tax deduction on a home loan after I have taken possession? Can I shift the loan to another bank and then claim the exemption if that is not possible?

Even if the loan is transferred to a different service provider, the construction period will continue at eight years. Because the construction period is longer than five years, the prior-period interest will not be deductible under Section 24. Only when you have taken possession of the property will you be entitled to receive the benefits on both the interest and principal paid under Sections 24 and 80C.

03. Aditya Khurana

What are the other choices for borrowing ten lakh for a short duration at a lower rate, given the high-interest rates on personal loans?

Personal loans are, indeed, unsecured loans with no collateral, making them costly. If you have any financial assets, such as stocks, mutual funds, classic LIC policies, or bank FDs, you may be able to borrow against them. They'll be less expensive than a personal loan.
Personal Loan

04. Alok Chauhan

My son receives offers from fintech companies for loans with no collateral requirements. Should he apply for a loan using the app?

A loan should only be taken when absolutely necessary. Your kid could take out a loan if he has a specific buy-in mind for which he does not have immediate finances. I would also avoid leveraged investments, which involve taking out a loan to invest in riskier assets.

For more such updates, keep watching this space!

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Yes Bank, Indiabulls Housing Finance sign co-lending agreement

Yes Bank and Indiabulls Housing Finance have entered into a co-lending agreement for home loans. The two finance giants, Yes Bank, and Indiabulls Housing Finance have come in a partnership to synergize capabilities and enhance retail experiences for home loan customers.

yes bank and indiabulls

On Wednesday, the two finance giants said in a joint statement; the partnership aims at synergising capabilities to provide an efficient and seamless experience to retail home loan customers. The statement also adds that the Reserve Bank of India’s co-lending framework provides a collaboration tool for both banks and non-bank financiers. Which will provide a low-cost funding model of a bank and the cost-efficient sourcing and servicing capabilities of a non-bank.

In November 2020, the Reserve Bank of India came up with guidelines on co-origination of loans or co-lending of loans. Under this framework, banks and NBFCs (non-banking finance companies) can lend to priority sectors or economically weaker sections. The main idea behind the collaboration framework is to encourage credit flow to this segment.

What is the co-lending model (CLM)?

yes bank and indiabulls co lending

In the co-lending model (CLM), banks have the permission to co-lend with all registered NBFCs (including HFCs). However, the loan will be based on a prior agreement between the banks and NBFCs. Moreover, the co-lending banks will be taking their share of the individual loans on a back-to-back basis in their books.

How do the two financers approach this partnership?

According to Rajan Pental, Global Head, Retail Banking, Yes Bank, The partnership is in line with Yes Bank’s strategy of expanding its retail franchise through a mix of organic and partnership-led origination models. The bank is eyeing forward to further build a profitable and quality home loan portfolio through this partnership.

Gagan Banga, Vice Chairman and CEO, Indiabulls Housing Finance expressed his optimism for the partnership. According to him, they can now leverage Yes Bank’s deposit-led franchise and complement that with the technology-led distribution of Indiabulls. Thus, it will help in providing efficient solutions around home loans to a wide gamut of customers across geographies, ticket sizes and yield spectrum. The collaboration will provide balance-sheet light growth and profitability to the two firms.

How will borrowers benefit?

From the borrower’s point of view, the idea makes a lot of sense as it will make the process faster. NBFCs process loan applications much quicker than banks. Also, NBFCs have a better reach among borrowers than the banks in many geographies. NBFCs can get bigger and top-rated borrowers on their books through this arrangement. Whereas it wouldn’t have been possible otherwise, according to a former SBI senior executive.

For more such updates, keep watching this space!

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Recast loans at non-bank lenders may double by this fiscal end: Report

Recast loans at non-bank lenders may double by the end of this fiscal year. The restructuring of assets of non-bank lenders is likely to double up, to 3.3 percent by March 2022. The main reason for this trend is the impact of the second wave of the pandemic.

recast loans

The same ratio was previously at 1.6 percent as of March 2021, after the first wave of the pandemic. The pandemic helm the Reserve Bank of India (RBI) to make an exception by launching a loan recast facility. This scheme is envisaged for the borrowers impacted by Covid-19.

The Credit rating agency, ICRA said the restructured book for NBFCs is expected to be 4.1-4.3 percent as of March 2022 in contrast to 2.2 percent in March 2021. Meanwhile, the same rate of 2.0-2.2 percent is expected for housing finance companies against the earlier rate of 1.0 percent in March 2021.

recast loan

Why the Second wave could be a reason?

The second wave of coronavirus infections is responsible for imputing the budding recovery in non-bank collections. The predictions for the respective collections in Q3 FY2021 and Q4 FY2021 do not bring that sunlight anymore. The second wave is severely impacting the cash flow of the underlying borrowers. Therefore, further prolonging the recovery process.

The Vice-President of ICRA, A M Karthik, said the nature of the underlying security governs the higher incidence of recasts for NBFCs, against the Housing finance companies (HFCs) with home mortgages.

Vehicle, SME (small and medium enterprises) and personal loans are the bulk of the NBFC’s credit accounts. Such customers were facing asset quality-related pressures during the last fiscal. Entities with a sizeable share of new and heavy and medium commercial vehicles witnessed higher restructuring. While, the same was modest for other segments like cars, two-wheelers, and tractors.

According to Crisil, liquidity cover rating at NBFCs has improved from a year ago. This puts NBFCs in a better position to service debt in the near term, which will cushion the impact of the pandemic. This trend is changing from the respective scenario of last year when asset-quality and liquidity fears multiplied. This observation came after the announcements for a moratorium on repayments and stringent lockdowns. Now, once again the second wave is affecting the collections in the current fiscal, and the decline has been more pronounced in May. As the containment measures in most parts of the country only started in the latter part of April.

For more such updates, keep watching this space!

Advices Business Education Finance Financial Advice

Secured Loan – What it is and When to take it?

Secured Loan

A loan against collateral or Secured loan is a type of loan where the borrower takes debt against collateral. In other words, the borrower pledges a valuable asset as a security to the financer. This type of loan is called a Secured loan because it provides security to the financer for their money.


In most cases the borrower use secured loans to finance a commodity like a house, vehicle, etc., here the borrower pledges the purchased commodity as collateral. Alternatively, the borrower can take a loan by pledging their stocks, property, jewelry, fixed deposits, etc.

Why Secured Loan?

From Borrowers perspective Secured Loan offers greater flexibility, longer repayment tenure, and higher loan amount than an Unsecured Loan.
For lenders, it offers more security and lowers the risk of default by borrowers. In case the borrower fails to pay the loan, the lender can recover their money by selling the asset pledged.

Types of Secured Loan

  • Mortgage loan
  • Home loan
  • Vehicle loan
  • Secured Business Loan

Eligibility Criteria for a secured loan

  • Applicant must be an adult (above 18 years of age)
  • Some Financers expect you to have an annual income greater than a prescribed amount. Although the income can come from business, regular salary, or non-salaried resources.
  • Applicant must have an asset whose valuation matches or exceeds the loan

Pros and Cons of Secured Loan


  • Lower Interest Rate than an unsecured loan.
  • More Flexible repayment options.
  • Can offer Longer repayment tenure.
  • Faster Loan Approval
  • Loans are Customizable to cater to specific needs.
  • Can be availed by a non-salaried person.
  • Offers Higher Loan amount than an unsecured loan
  • A guarantor is not required
  • Can be availed even at a low CIBIL score. Moreover, it improves the CIBIL score when the loan is fully paid.
  • Lenders have more confidence and security for their money.


  • Seizing of collateral in case of default in repayment of the loan.
  • The money borrowed can only be used for a specific function as per the loan agreement.
  • It involves Heavy Paper Work more complex than an unsecured loan.
  • It expects that the applicant has full ownership of the collateral pledged.
  • Longer repayment tenure also means a greater total amount in repayments
  • Even after the bank seizes the collateral, any income you generate will go straight to the bank. More often than not, applicants keep paying only the interest and fines whereas the principal amount remains the same.
  • Default on the repayment can heavily reduce your CIBIL Score.

Even with many advantages of a secured loan. It is always wise to plan your finances because defaulting on a secured loan is very brutal for your financial health.

How to compare Secured Loan?

compare loan

Before making any purchase, a good rule of thumb is to compare what other options are available in the market. A secured loan is no exception to this rule, and hence it is important to compare every proposed offer against your assets. While making a comparison among secured loan look for the following factors:

  • The type of collateral required to secure the loan.
  • Minimum and Maximum loan amount.
  • The interest rate for the loan
  • Any additional fees charged by the lender, such as processing fees, prepayment penalties, etc.
  • Credit Score and Income requirement of the loan.
  • Proper analysis of the loan agreement and whether or not it suits your financial aspirations.

Secure or Unsecured, taking a loan is no joke and has many risks involved, so before taking any type of debt you must ask a few questions to yourself.

  • Do I really need this debt, and what other options are available to me.
  • How this debt will affect my life in the best and the worst-case scenario.
  • How much loan I can afford and how little do I really need.


For more such updates, keep watching this space!

Advices Budgeting Business Education Financial Advice Personal Strategy

When and How to get a loan?


Short on cash? Whether it’s a trip you’ve been planning, a car you want, or just a sudden shortage of money there could be many reasons why a loan is your best option. In this article, we will discuss when the loan is right for you and how you can get financed.

Loan - What is it and How it works?

It is an agreement between the borrower and a lender, where the borrower borrows money from the lender. And the lender receives a legal document that ensures the repayment of the money borrowed. Both borrower and lender can be an organization or an individual.

Types of Loan

Types of loans

These can be classified into two types based on the security provided:

Secured Loan

In a Secured Loan, the borrower pledges security for the money that they are borrowing. Here, the securities are the assets that can be sold if the borrower defaults on the repayment of the loan. In this type of loan Lender have security for their money.

Unsecured Loan

Unsecured ones are riskier than Secured loans as per the lender’s perspective. These loans do not require collateral, however, the eligibility criteria are more strict in Unsecured than Secured Loan.

Further loans can also be categorized on the basis of their purpose. To list a few we have,

  • Education
  • Home
  • Personal
  • Car or Vehicle
  • Business

Different types of loans have a set of similar eligibility parameters along with other specific parameters according to the loan type. Also, every lender defines their eligibility criteria differently.

Types of Lender:

There are many financers in the market that provides loans. These financers can be categorized into:

  • Banks
  • NBFCs
  • Private Financers (Individuals or corporations)

Different finance offers different loan products i.e. different interest rates, tenure, collateral, etc.


What financers look for while evaluating your application?

Before issuing any loan, every financer performs some eligibility checks on the borrower’s profile. In most cases financers are looking for profiles that have:

The interest rate is often based on the below features of a borrower’s profile.


Documents required

Loan application

For Salaried Applicants:

  • Application form with photograph
  • Identity and address proof
  • Last 6 months’ bank account statement
  • Latest Salary Slip
  • Form 16

For Self-Employed Applicants:

  • Application form with photograph
  • Identity and address proof
  • Last 6 months’ bank account statement
  • Proof of business
  • Business profile
  • Income Tax returns (self and business) for the last three years
  • Profit/loss statements and balance sheets of the last three years

When should you apply?

Before you apply for a loan, you should be aware of your financial situation. It is you who must pay back the amount later. Proper planning for your personal finances is necessary to ensure good financial health.

How to apply?

To apply for the loan, you can either go to the bank and talk to the bank officials or steer past all that and apply online. We will discuss the procedure in the following steps:

  1. Choose the lender you’d wish to borrow from that supported your research and check for your eligibility.
  2. To apply, you should visit their bank branch or go through their official website.
  3. Read the form carefully before signing in anything.
  4. Submit or upload all the necessary documents mentioned in the application form.
  5. Wait for the bank’s response, it can take from few minutes to few days. The bank will process your application and respond accordingly in a stipulated time.

It is always advisable to read all the documents carefully and discuss every clause thoroughly until nothing remains vague. Never take a loan unless you absolutely need it. Defaulting on the EMIs can lead to an unpleasant situation that is not good for your financial and mental well-being.

For more such updates, keep watching this space!

Advices Budgeting Education Finance Financial Advice Personal Strategy

How to get Instant Personal Loan!

In our lives, we all have been in situations where we were in desperate need of money. In this article, we will explore what other options we have to ease our finances, how to get a Personal Loan instantly, and the role of CIBIL Score. Though they are many advertisements we see every day on both online and offline mediums. But availing of these Personal Loans without due knowledge may backfire.

How Banks and NBFCs are different from each other?

Banks are the organizations that offer saving accounts, current accounts, loans, and other financial products. In India Banks operate with the permission of the Reserve Bank of India. Banks can be classified into Government-owned, private banks, and cooperative banks.

NBFCs or Non-Banking Financial Companies

These are private financial institutions offering various financial Products. They are only limited to offer loans and fixed deposits. NBFCs operate in India as per the Indian Banking Laws. They offer loans at a higher interest rate than banks and usually have easier eligibility criteria.

Now, we know the difference between banks and NBFCs. There are many websites and apps working as third-party providers. These third-party providers take big loans from Banks and distribute that money into smaller loans or personal loans to be precise. They offer these small personal loans to consumers for a short period i.e. few months. However, the Interest rate is usually high on these platforms.

loan application

As consumers, we can seek loans from any of these providers. But before taking any loans, always do your own research about the Institution and the product. The few important factors are the reputation of the financer, interest rate, duration of the loan, etc.

Instant Personal Loan

Instant Loans are short-term, small loans that can be availed from the comfort of our home. There are banks, NBFCs, and other third-party platforms that are offering such loans. But not all platforms are alike.

Now that you have done the research and short-listed a few financers. We need the knowledge of the CIBIL score.

Personal Loan Thumbnail

What is CIBIL Score and How it affects your Personal Loan?

CIBIL Score (or Credit Score) is given by the TransUnion CIBIL. This score represents the credibility of the loan seeker. It is based on the past performance of an individual’s loan payments. Hence, the higher the CIBIL Score greater the odds of loan and the lower the interest rate.


It is advisable to maintain a good CIBIL Score. We must plan our finances accordingly to ensure a good CIBIL Score. Timely payment of EMI is one great habit to maintain a good CIBIL Score.

Loan Application

When we apply for a loan, Financial Institutions assess our loan application over certain parameters like employment status, salary, CIBIL Score, etc. One can check the CIBIL Score of anyone using the Pan Number of the subject.

All the institutions ask loan seekers for certain documents. These documents include PAN card, Aadhar Card, account information ( i.e. bank statement or passbook), etc. These documents are then verified and only after the verification, our loan is processed.

Who should you approach?

It is always advisable to only avail loans from credible government-approved institutions. There have been many reports of incidents where financers were accused of exploiting consumer’s rights. Nevertheless maintaining a good CIBIL Score will help in your future of the odds of getting any loans.

Below are few platforms that offer instant loans. But always do your own research before availing of any loan.

Government Banks

  • State Bank of India
  • Central Bank of India
  • Punjab National Bank
  • Bank of Baroda
  • Corporation Bank
  • Canara Bank

Private Banks

  • Kotak Bank
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Yes Bank
  • RBL Bank


  • Tata Capital
  • Mahindra Finance
  • HDB Finance Services
  • Aditya Birla Capital
  • Bajaj FinServ

Third-Party Platforms

  • Dhani
  • Home Credit
  • MoneyTap

Kindly read every loan-related documents carefully before signing. This is not a promotional article for any of the institutions mentioned above.

For more updates like these, keep watching this space!

Contact us to get more knowledge about everything related to Personal Loans and more. or you can directly apply on our website.

Advices Budgeting Business Financial Advice Strategy

Home loan and EMI strategies!

Whenever we take a home loan, there come certain questions in our minds. You will find some of your answers in this article. For example: What should be the future strategy to pay my home loan? Should I pay the maximum amount of down payment? Should we pay off or continue?

Is it a good idea to get a home loan?

A home loan is an incredibly significant scheme. The government promotes that every citizen has their home in which home loan serves as the best helping tool. This facility is provided by Banks and NBFCs at a very nominal rate. Home loan in fact is the least expensive loan when we compare it to car loans, business loans, personal loans, and education loans.

Under section 80c and section 24 in the constitution, the government provides many kinds of rebates for home loans. So, a Home loan is a good idea provided we pay the EMIs regularly.

Should we pay off and foreclose?

You need to analyze if you have any big amount of expense in near future i.e education fee, wedding, etc. Suppose you have lump sum liquidity available. And in near future, you need your money for your education fee. So, in that case, you should not pay off your home loan. The important purpose should not suffer. Do not stick up your money in a home loan.

Income tax rebate fall

If you are paying much amount of money as your tax payment, then continuing a home loan is an incredibly wise idea. There are some sections in our constitution regarding income tax. According to those sections, you can get benefits up to 3.5 lakhs on single properties, and the profits included in the last budget give benefits of rupees 5 lakh on two properties. It means you can reduce your taxable income up to 5 lakh rupees. Continue the loan and do not pay it off if you pay lots of income tax.

Payment in parts

If you receive a big amount of liquidity, it is always a wise idea to divide it into payment and investment. With this strategy not only you make long-term returns but also you will use the benefits of section 80c. Use the part payment process in a disciplined manner.

Now we will discuss few points on how a new or an existing home loan borrower can reduce the EMI of their home loan.

Investment Loan

What should you do if

You are a new Home Loan borrower

Firstly, you should find a lender who can provide a home loan at a lower interest rate. It is an overly complicated job to find an appropriate lender.

Let us gather few ideas which can help you get a good deal on home loans.

  1. Try to opt for a longer repayment duration on your loan – However, in longer tenure borrowers end up paying more interest that is why you should opt for longer tenure only if you are not able to afford EMI. You may try to maximize your EMI payments but not more than what you are able to pay every month.
  2. Analyze the rates of Interest offline as well as throughout the internet – When you do your home loan research there may be good offers through your agents but there is also another way to check it online as well and have a summarized look at the rates of interest, fee and other charges of different lenders. Thorough research will ensure you the best deal for your home loan.
  3. Make a bigger down payment – As home loan lenders are allowed to finance up to 80-90% of the property’s value and those who are looking to avail a home loan have to contribute a minimum of 10-20% as a down payment. So, instead of arranging just the minimum down payment, it would be prudent to provide a higher contribution from your own pocket.


The higher you contribute as a down payment, the lower your LTV ratio will be.

LTV ratio- Loan to Value Ratio. It means the ratio of a loan to the value of the property purchased and the loan amount required would be. Consequently, it will increase your loan eligibility and enhances the chances of loan approval. Do not overstretch your finances in order to make a higher down payment.


What should you do if

You are an existing Home Loan borrower

Few simple steps to follow in case of existing Home Loan borrowers are -
  1. Refinance the loan by changing your lender – If you think you have taken a loan at a high-interest rate you always have an option to refinance it. Banks offer interest rates based on the MCLR regime which changes from lender to lender.
  2. Negotiate the service terms with the existing lender – You need to maintain a good relationship with your existing lender, you can negotiate the service terms of the home loan. This way you may be able to procure lower interest rates on your loan amount.
  3. Make your home loan prepayment from time to time – It is important to repay your loan payment on time because it reflects in your credit history. it also reduces the loan liability.

For more such information, keep watching this space!