To reduce the burden of EMI, you can check the interest rates and fees etc. of different financial institutions online. Apart from this, you can reduce it by trying some other methods.
Many people take home loans or car loans, instead of which they have to pay the installment (EMI) every month, but due to the financial situation messing up in the Corona period, the burden has increased on them. If you are also involved in such people and want to reduce the existing EMI, then you can adopt some special methods. This will reduce the burden on your pocket.
LTV ratio will be helpful
LTV ratio is very important during home loan. This is the part of the loan in which the loan is available based on the value of the property. The home loan borrower has to arrange the remaining value of the property from his own resources. Therefore, choosing a lower LTV ratio will reduce the home loan amount. This will also make EMI less. If you make more contribution (down payment) to buy a house, then you will get benefit in the long term.
Choose long term option
New home loan borrowers can reduce their EMI burden by opting for a longer term option. According to Paisa Bazaar.com, if you take a loan for a longer period, the EMI is reduced. However, the interest cost is higher in this. But in such a situation where you have cash strapped, you can take this option. With this, you will not fall into the default category and will be able to repay the installments easily.
Every financial institution offers different offers on home loans. You can reduce the installment of home loan by transferring your loan to another bank or financial company. For this you can compare and check online. You will find many such online portals where you will get brief information about interest rates, fees and other charges. After getting the details you can chat directly.