Everyone has the desire to buy or build a house, everyone wants to have their own home. But there are times when there is no full money to buy a house that has to shift towards a home loan. One of the benefits of home loans is that it helps to save tax. However, it becomes difficult to repay the EMI after taking a home loan several times. Such difficult situations occur when you do not have a regular income, or your income is closed for some reason. A number of optional tricks can be used to reduce the home loan EMI burden. Payment of principal of a home loan is availed under section 80 C of the Income Tax Act. On payment of interest, you get the benefit of section 24b. If you have a home loan payment burden, find some of the ways you can reduce the home loan EMI burden.
Increase in EMI:
The salaried employees have a salary increment once a year. So increase the EMI amount when the salary increases. If you increase your EMI amount every year, the loan period will come down, which will help you repay the total outstanding loan amount.
Date of Salary:
Try to get your EMI date around the date of your salary. This will not miss you about EMI payments.
The option of Balance Transfer:
If a lender is found between the home loan period, you can transfer the home loan. You can quickly fill the home loan by keeping this in mind.
Home loan overdraft facilities can be availed with a home loan account to reduce the interest rate on home loans. Through this facility, you can also deposit additional money in your home loan account in addition to your EMI. When there is additional money in the account, interest money and loan tenure will be reduced. However, one thing is that withdrawing money from a home loan account will increase the interest amount on loan.
Image credit: vakilhousing