Customising Repayment Plans: Flexible Options for 15 Lakh Home Loan EMIs

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Reshu and Naima were two best friends, completely engrossed in a conversation linked with the aspiration of becoming homeowners. Naima, a diligent IT expert, aspired to buy a cosy 2BHK flat using a 15-lakh home loan EMI while Reshu, an entrepreneur had her eyes on a spacious abode funded by a 25-lakh home loan. 

As they gulped their tea at a café, Naima shared great concern regarding managing 15 lakh home loan EMI. Reshu being a savvy businesswoman emphasised on the significance of customising repayment schemes to match individual circumstances. 

“Reshu, how I can be sure that I am not burdened by a 15-lakh home loan EMI? I want convenience and flexibility”, Naima inquired. 

Reshu leaned in with her eyes gleaming at financial wisdom and started unfolding the actual story of a customisable repayment plan. “Naima, it is essential to explore flexible choices when considering EMIs. Financial institutions now understand the requirement for personalised solutions. For example, you can consider step-up EMIs where the payments enhance gradually, matching with your increased income and career growth over time.”

Naima’s eyes widened with interest, and she leaned in closer, eager to grasp every bit of Reshu’s financial wisdom.

“For your home loan of 15 lakh, another best choice is the EMI holiday feature. This permits you to defer payments for some months, which can be helpful during unanticipated financial crunches, “Reshu continued, elaborating on the vivid picture linked with financial empowerment. 

As their discussion went ahead, Reshu even shed light on 25 lakh home loan EMI choices. “For a bigger loan proceed, Naima, you could factor in flexible repayment tenure. This permits you to better adjust your repayment tenure, endowing you the freedom to select a repayment tenure in matches your goals and allows a comfortable outflow on a month-on-month basis.”

With curiosity, Naima came up with a question, and soon the duo delved into reasons that must be checked meticulously before placing an application for a home loan – 

Repayment flexibility

Knowing the EMI helps in selecting the correct repayment tenure. 

Understanding EMI aids in choosing the right tenure. This flexibility ensures you select a repayment tenure in matches your goals, whether it is repaying the loan or going for a higher repayment tenure to lower your monthly burden. 

Neglecting penalties

Ensures timely payments, preventing penalties.

Being aware of your EMI due dates and amounts helps in making timely payments, preventing the imposition of penalties. This financial discipline contributes to a positive credit history and saves you from unnecessary additional expenses.

Budget planning 

Knowing your EMI helps in precise budgeting.

Knowing your loan EMI permits you to allocate a particular portion of your budget for the repayment of home loans. This precision allows you to cover all your expenditures while still mitigating your loan EMI obligations, endowing financial stability and discipline. 

Neglecting monetary stress

Ensures that EMI payments won’t cause financial strain.

Being aware of your EMI proceeds in relation to your annual income prevents overcommitting to a loan. This knowledge protects you from monetary stress, ensuring monthly repayments are done well within your financial potential, permitting a comfortable and hassle-free financial life. 

Interest rates

Allows for comparison of interest rates offered by different lenders.

Knowing your EMI facilitates an in-depth comparison of the rate of interest provided by distinct lenders. This allows you to select a home loan with a suitable rate of interest, saving you money over loan tenure. 

Understanding affordability

Make sure the EMI is affordable without any compromise on lifestyle. 

Knowing your loan EMI assists in deciding a loan amount that is affordable without sacrificing your lifestyle. This ensures ownership of the home is enjoyable and sustainable.

Prevents overborrowing

Ensures you don’t borrow more than you can comfortably repay.

Knowing your EMI serves as a financial reality check that prevents you from borrowing more than you afford to repay. This essential approach assists in avoiding debt traps and allows responsible behaviour financially. 

Credit score impact

Helps in evaluating the impact on credit score.

Regular EMI payments contribute positively to your credit score. Knowing the EMI in advance allows you to plan for consistent and timely payments, safeguarding and potentially improving your creditworthiness over time.

Emergency preparedness

Leaves room for unforeseen financial emergencies.

Factoring in the EMI amount in your budget allows you to set aside funds for unexpected financial emergencies. This buffer ensures that you can continue making EMI payments even during challenging times, preventing defaults, and maintaining financial stability.

Tax planning

Helps in planning for tax benefits associated with home loans.

Knowledge of your EMI facilitates effective tax planning, allowing you to leverage the tax benefits associated with home loans, such as deductions on principal and interest repayments.

Negotiation power

Knowing the details linked with EMI strengthens negotiation deals with lenders. 

With knowledge about your market rates and EMI, you acquire negotiation leverage when facing lenders. This positions you to secure more suitable terms, saving your funds potentially over the duration of your loan. 

Mental peace

Being aware of your loan EMI offers mental peace as well as financial stability. 

Being informed regarding your EMI and aspects of your home loan inculcates a sense of mental peace and financial security. This knowledge permits you to understand the homeownership journey with stability and confidence. 

Customisation options

Knowledge of EMI aids in choosing a customisable plan.

Understanding your EMI allows you to explore and choose from various customisation options offered by lenders, such as step-up or step-down EMIs, ensuring that your repayment plan aligns with your evolving financial circumstances.

Loan eligibility check

Make sure you place an application for a loan within the qualifiable limit. 

Knowing the EMI helps in deciding a loan proceed those lines up with your eligibility, preventing applications for considerable loans that may result in financial strain or rejection. 

As Reshu and Naima ended their chat, they felt confident to begin their home-purchasing journey with knowledge linked with tailored repayment options and the significance of meticulous EMI planning for home loans. 

And so, in the ever-evolving landscape of Indian real estate, Naima and Reshu discovered that crafting a flexible and tailored home loan EMI plan was not just financially wise but also the key to turning their homeownership dreams into reality. 

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