Home loan

How to effectively manage your PNB EMI home loan


Given the growing demand in the real estate sector, many lending institutions are providing home loans to individuals who need financial assistance to buy their dream home. Many aspiring homeowners benefit from a home loan in India.

Those who meet the lender’s eligibility criteria and have their down payment ready have no trouble getting a home loan. However, managing EMIs and repaying them on time is more important than getting a home loan.

Ignoring EMIs is risky as they negatively affect credit rating and result in heavy penalties.

Obtaining a PNB housing loan is a long-term commitment that involves an important financial decision for the borrower. Here are some tips for effectively handling home loan IMEs like a pro.

Compare and get the lowest interest rates

Conducting thorough research and comparing different lenders is the most important step before taking out a home loan. Compare the interest rates offered by different lenders and opt for the one that offers the cheapest rate based on loan eligibility. Opting for a loan with a cheaper interest rate will ensure that EMIs do not become a burden on the due date.

Plan by prioritizing IMEs

Another crucial piece of advice is to make paying off the PNB home loan EMI a top priority among your financial obligations. Paying the EMI before the due date will build credibility and boost your credit score. A tip is to schedule an automatic payment a few days before the due date. This will avoid missing the EMI payment, as a long-term default may cause the property to be pegged to the bank.

Go for a bigger EMI

While going for a higher EMI seems difficult, maintaining a higher EMI helps pay off the home loan sooner and build credit. Paying larger EMIs also reduces total interest expense at the end of the loan term. Therefore, assess your finances and explore affordability options before selecting an EMI amount.

Use an EMI calculator

PNB Housing also offers an EMI calculator on its website. This easy-to-use online tool calculates the EMI amount for different loan terms based on the loan amount, interest rate, and loan term of the applicant. Accurate insight into EMI payments helps choose a loan plan that suits the borrower’s monthly budget and repayment capacity.

Save for a larger down payment

According to many PNB housing finance reviews, it is recommended to save money for a larger down payment before applying for a home loan. A larger down payment means the borrower has to borrow less. Hence, it helps to reduce the amount of loan required, reduce loan burden and keep EMIs easily affordable.

Prepay as much as possible

Paying off the loan early seems like an added financial responsibility that no one would want to take on, but this simple trick will pay off in the long run. Aim to make at least one additional EMI payment each year, which will reduce the term of the loan by a few years and save on interest charges.

Following these simple suggestions diligently will help manage home loan EMIs effectively. The trick is to manage the money wisely and conscientiously. This will save the borrower from worrying about missing the PNB Housing loan EMIs or struggling with them.

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